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Banks

28 April 2006 Angelo Coppola

Dear Editor

I read FANews with high interest these days as it seems to give us more insights on banks and their interest charges, early cancellations, etc. I can't understand really why we pay for paying up too quickly. And I wish I could understand how banks like African Bank operate. I'm interested in how they calculate their interest. I made an R8,000 loan with them and over an 18-month period i had to pay bank R916 a month. They end up with R16,488. Over such a short period of time that was a 100% plus interest to pay.

I seriously feel for poor people who go that desperate for funds and end up paying so much. And banks (like Nedbank; Absa; Standard Bank; FNB) seems to only give out money to people who are already loaded. It seems like they target people who just need liquid money but already have it all in investment,etc. I find it unfair because they charge much better interest. But anyway, that's just me thinking of how banks can help out bridging the gap between 1st and 2nd economy.

Access to funds is really a big problem leading to dire poverty to the have-nots. Hence SA is debt full. Owing a bank is much better than owing loan sharks and foschini's of this world. Just a thought...

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