Briefing Document:

Nedbank brings you Consumer Financial Education

DATE & TIME Date: May 2020

Time: 16:15- 16:30 pm

FORMAT Via Call in onto Radio

CONTEXT
The South African banking sector is aiming to make basic banking services accessible to
everyone. Despite this, there are still are still many people who are unbanked. We are
offering this financial literacy & education platform to develop people’s financial
literacy skills and by encouraging them to change their money habits improve their
financial well-being. So today we take a deeper look at Understanding Credit.

• Please introduce yourself to us. (Name & Surname, Occupation/Job Description).

• Please give us a brief overview of your business institution?

Nedbank is one of the leading financial institution in SA, we are the money
experts who do good and help people to see money differently, as a Green bank,
we care about communities

POSSIBLE QUESTIONS Today we are look at better ways to use Credit and manage it to improve our lives

In today’s world, Credit is part of everyday life. It can be a very helpful tool and a very
useful asset in our everyday lives, but only if we understand it and manage it properly.

Q1: What is Credit?

Credit is the ability of a customer to obtain goods or services before payment, based on
the trust that payment will be made in the future, usually with interest.

Q2: What is a Credit Agreement?

- It is a legally binding contract between the lender (Credit provider) and the
borrower (Consumer)

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 - It outlines the rules associated with the contract/agreement including the details
of the borrower and the lender, loan amount, monthly repayments, loan period
and interest rates

Q3: When do you need Credit, what can it be used for?

- Credit is needed for huge purchases like buying a house or a vehicle

- Property extension or renovation
- Furniture
- Education cost
- Vitally important for building a solid credit history

Q4: What are the different types of Credit/Loans?

- Home loan/Bond
- Vehicle Finance
- Personal Loan
- Credit Card
- Clothing or Store Cards

Q5: What are the advantages of using Credit?

- It allows you to buy something that you cannot afford now, and pay for it later
- It helps you build a credit history
- Can be used in an emergency

Q6: What are the disadvantages of using Credit?

- Credit is not free, it cost money to get money

- Credit may lead to over/reckless spending
- It may lead to over indebtedness
- Legal action
- Blacklisting

Q7: What is the cost of Credit?

- Interest rate
- Initiation fee
- Service fee
- Default administration charges
- Collection fee
- Credit insurance
- Legal costs

Q8: Where is the right and legal place to get safe Credit?

- Registered financial Service providers Authorised by the National Credit Act

(NCA) like
- Banks
- Insurance companies

Q9: What sound financial advice do you have for the public regarding Credit
management?

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 - Only use Credit for big/huge purchases like house or vehicle, rather save enough
and buy cash

Q10: Should anyone have any general enquiries about maintain financial health or
Consumer financial literacy and education programme which Nedbank rolls-out, please
provide us with the contact person and details.

You can get hold of me on: provide your email and work number

For more information on Consumer Financial Education and Nedbank’s contribution

during this time of COVID-19 please visit: together.nedbank.co.za/ or nedbank.co.za

ABOUT CFE Consumer Financial Education is all about focusing on the ability to transfer knowledge
and Skills to consumers and potential consumers for individual well-being and the
public good. The programme is aimed at empowering consumers with knowledge to
enable them to make better and more informed decisions about their finances,
lifestyles and small business ventures. Through our programme we want to influence
and drive a changed behaviour towards money and help individuals