It's a fact.
For every home loan application that's going into the banks these days, the home loan application is getting declined at least once. Not because you can't afford it, not because you have a bad credit record or listing with ITC but because the banks in South Africa are scared and not meeting their SLA's.
Now, as we all know corporate companies and most companies these days need to set SLA's and lets face it, banks are run by SLA's!!! If SLA's are not met certain heads will fly. These are service level agreements for those of you not familiar with the term, that are put into place to improve company performance etc etc etc... *bull---- **cough*. By declining home loan applications the banks are now meeting their requirements. Let me paint this picture...
I submit home loan application.
DECLINED - AFFORDABILITY ISSUES
I resubmit the home loan application.
DECLINED - CREDIT SCORE
I resubmit the home loan application.
BOND GRANTED
On the banks books 1 credit application granted out of 3 requests (30% success rate, means I'm now meeting the new NCA regulated requirements for credit applications)!!!
NOW YOU READ INTO THAT ONE ALL YOU WANT!!!''
The fact of the matter is, the banks are scared to provide credit to clients because should that client not pay and his reason for not paying being affordability, the banks are liable for reckless lending...
So now we ask ourselves. Was the credit act put in place for the banks or for us???
1 comment:
You know. I've now submitted an application with Ooba. I earn R65 000 a month and I'm self employed. The banks in south africa are rejecting everything. I was declined at all 4 banks and for no reason at all. AFFORDABILITY they said.
RUBBISH and thanks for sharing this article with me.
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