Press Releases & Interviews

Edcon concludes securitisation of further R1.1 billion of debtors book

25 October 2006

Edcon has teamed up in a strategic, exclusive arrangement with First National Bank (FNB) to offer qualifying Edcon store-card clients access to competitively-priced personal and home loans.

Further collaboration and product offerings will be announced in due course.

The Edcon-FNB partnership will provide personal loans in excess of R10 000 and home loans for both first-time buyers and customers already in the housing market wishing to change either their home or their bank.

The loans will be available to Edgars and Jet customers with a proven credit track record and who therefore represent a low credit risk, supporting competitive interest rates. Edcon currently has over 4.1 million store-card customers, 84% of whom are current and able-to-buy.

Its a logical next-step for us to move from providing many of our customers with their first line of credit into the home loan space, helping them buy their first house. Similarly, access to finance has been on the national agenda for some time and supporting our country's priorities where possible fits into our business model, explained Ian Wood, Edcons Financial Services Executive.

Michael Jordaan from First National Bank added: By teaming up with Edcon, we've extended the value proposition for their customers beyond a traditional private label offering. We wanted to introduce unique products that have competitive rates and a distinct retail flavor and believe that both the personal and home loan set the precedent for a partnership that brings many other exciting opportunities.

Distinctive features will include a rewards system over the life of the loan in the form of store vouchers, discounts on attorneys fees for conveyancing and free borrower education, particularly for first-time home owners. Customers will learn about processes and costs, pitfalls to avoid like over-indebtedness and black-listing and how they can pay down loans quicker to save.

Our research has shown that South Africa is in short supply of affordable housing, not buyers. We've seen a dramatic move away from townships to suburbs. Providing this asset-backed finance for wealth creation helps satisfy both FNBs and Edcons commitment to transformation and black economic empowerment, according to Wood.  

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