Capitec clients are getting R160m in interest refunds
JOHANNESBURG - MORE THAN 80 000 Capitec Bank clients had received more than R160 million from the bank in the form of interest refunds, the lender said yesterday.
As a financial relief measure the bank offered a three month 100 percent refund on interest incurred during payment breaks to all clients taking up its Covid-19 payment break or rescheduling relief plan between March 27 and July 19, 2020, it said.
The refunds are part of Capitec's drive to help alleviate financial pressure on clients during the Covid-19 pandemic.
Gerrie Fourie, chief executive of Capitec, said: “While payment holidays offer temporary relief, loans still incur interest, which adds to the total cost of credit. We want to help our clients as much as possible during this time, which is why we waived the interest for the relief period for clients who met the qualifying criteria.”
To qualify for the interest rebate, clients had to honour their loan instalments after the relief period. After six months of successful loan repayments, a refund equal to 50 percent of the interest charged on the loan during the three months was paid into the client's loan account.
After a further six months' successful repayments, another 50 percent of the interest charged during the first three months will be refunded, Capitec explained. More than R60m was being refunded this month as 50 percent of the interest to nearly 40 000 clients who honoured six months of loan repayments, the bank said.