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Unsecured lending market overheated

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iggy
Occasional Contributor
I see that the CEO of Blue said this afternoon that the unsecured lending market maybe overheate. Will this affect the share price of Blue, and maybe even Capitec and ABIL, and ultimatly PSG?
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8 REPLIES 8
SimonPB
Valued Contributor
Indeed it will .. CPI at new high ..
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saash
Super Contributor
I also saw somewhere, think it was on one of my facebook news feeds, that there has been a substantial increase in % of unsecured credit, I doubt that will create comfort in the financial sector overall..
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rsalie
Super Contributor
extra from news article "The rand value of unsecured credit granted increased was up more than 57% in the last quarter of 2011 compared with the same period the previous year, the latest official data shows." Just shows how bad it is.
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kwagga
Super Contributor
Still, my head tells me that the risk on unsecured credit differs like the moon from the sun. Late market players have the most to lose as they probably will be content with the least financially secure clients that have been shown the door at other institutions.
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SimonPB
Valued Contributor
that is a totally meaningless stat on its own ..
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warhippo
Super Contributor
I always wonder what would be the criteria to qualify for an unsecured loan from these banks? Maybe if we knew that we can have a more objective judgement.?
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Not applicable
They basically credit score you and then "the computer" says yea or nay.
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AJT
Super Contributor
big 4 banks do the same, but the criteria a lot more stringent..
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