tag:blogger.com,1999:blog-19298483.post2124866884587360622..comments2021-07-04T12:35:46.365+02:00Comments on Insights and Rants: Nedbank hits grieving mom with 90% interest chargesDonn Edwardshttp://www.blogger.com/profile/07954994300802439618noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-19298483.post-85445611062105797142007-06-29T12:22:00.000+02:002007-06-29T12:22:00.000+02:00Disgusting. This also shows how "high risk" is a ...Disgusting. This also shows how "high risk" is a self-fulfilling prophecy: you load the interest rate of a low-income person until they can't afford the repayment and then, wonder of wonders, they can't afford the repayment.<BR/><BR/>Someone needs to create a framework for high-risk loans under a certain value (e.g. twice a month's salary) that involves a repayment at the same interest rate as an unsecured low-risk loan (that's often as little as prime+2) but with additional payments at the end of the period to compensate the lender for the risk.<BR/><BR/>So e.g. R4000 over 2 years at 40% would have a repayment of R245pm and a total amount paid of R5874. At Prime+3% the repayment would be R196 per month. You could offer the loan at a repayment of R196 over 30 months (totalling R5874).<BR/><BR/>This equates to an interest rate of 32%, but every payment made is evidence against the assumed risk of the borrower, so one may argument that a lower interest rate is in fact appropriate.Twylitehttps://www.blogger.com/profile/03667638132831676199noreply@blogger.comtag:blogger.com,1999:blog-19298483.post-22276866024230704382007-06-29T10:37:00.000+02:002007-06-29T10:37:00.000+02:00Does that mean that Nedbank is 90% interested in t...Does that mean that Nedbank is 90% interested in the poor?Anonymousnoreply@blogger.com