Title page for ETD etd-03162010-150538

Document Type Master's Dissertation
Author Rossouw, Zelna
Email zelna@zrc.co.za
URN etd-03162010-150538
Document Title The impact of the National Credit Act on micro lending sales in a bank in South Africa
Degree MBA
Department Gordon Institute of Business Science
Advisor Name Title
Mr G Price Supervisor
  • microfinance
Date 2010-03-16
Availability unrestricted

The South African Government moved aggressively to curb predatory lending, consumer abuses and outdated, piecemeal and ineffective legislation on consumer credit through the introduction of the National Credit (2005) and Regulations (2006). As a result the financial institutions and consumers are experiencing increasing pressure from the National Credit Act due to the strict lending regulations placed on the loans that it provides to its consumers or customers.

The objective of this research is to determine the impact of the National Credit Act on the sales of a Micro Loan to a customer of a specific bank within South Africa. The research approach of data triangulation research approach was used, divided into two phases. Phase one consisted of data analysed from the specific bank in question and supports the framework and foundation for phase two which consisted of face-to-face semi-structured in-depth interviews with ten industry Micro Lending Industry Experts within South Africa. Content analysis and constant comparative analysis was used to identify the key patterns and themes that emerged

The research found that the National Credit Act has had a significant impact on the Micro Lending Market with creating a more formal market and decreasing the informal market. The impact on the consumers repayment default on a micro loan was also significant and defaults decrease following the implementation. The general assumption that not enough time was given to the original goals set out by the Act to support the South African economy.

Copyright 2008, University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. No part of this work may be reproduced or transmitted in any form or by any means, without the prior written permission of the University of Pretoria.

Please cite as follows:

Rossouw, Z 2008, The impact of the National Credit Act on micro lending sales in a bank in South Africa, MBA dissertation, University of Pretoria, Pretoria, viewed yymmdd < http://upetd.up.ac.za/thesis/available/etd-03162010-150538/ >

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