Capitec has entered the unsecured vehicle finance market

Through a partnership with WeBuyCars, Capitec has launched an unsecured lending product.

Capitec has entered the unsecured vehicle finance market through a partnership with WeBuyCars. The banking group describes its unsecured lending product as ‘purpose lending”.

It has opened its first outlet inside the WeBuyCars dealership at Brackenfell warehouse in the Western Cape.

Capitec CEO Gerrie Fourie said during the company’s 2020 financial results presentation on Tuesday, 14 April, that the bank has already granted nine loans within 15 days at the WeBuyCars warehouse.

He said these loans were granted three weeks before the national lockdown began.

Gerrie said Capitec’s first ‘purpose lending’ client bought a 2VW Touareg 3.0 V6 TD1, 2010 model for R189,950 through a 60 months loan at an interest rate of 16.7 percent. The loan remains an unsecured one.

The banking group has signed agreements with another 80 dealerships to roll out its ‘purpose lending’ offering.

“We will move this over into the home improvement and education side later this year,” Gerrie said.