BANKING GIANT FRUSTRATES TOWNSHIP BUSINESS, THREATENS TO CLOSE ACCOUNTS
A businessman from Soweto, South Africa, took out a loan of R5.5 million to establish a supermarket franchise called Pilgrims Corner in Naledi. He managed to repay half of the loan in a remarkably short time. However, he now finds himself facing a difficult situation as the bank, Nedbank, has refused to restructure his loan
BANKING-GIANT-FRUSTRATES-TOWNSHIP-BUSINESS-THREATENS-TO-CLOSE-ACCOUNTS
A businessman from Soweto, South Africa, took out a loan of R5.5 million to establish a supermarket franchise called Pilgrims Corner in Naledi. He managed to repay half of the loan in a remarkably short time. However, he now finds himself facing a difficult situation as the bank, Nedbank, has refused to restructure his loan and has even threatened to close his business accounts.
Typically, banks assist reliable clients by either extending the loan repayment period or reducing the loan amount. This is precisely what the businessman, Linda Ndebele, requested from Nedbank. However, his requests were rejected by the bank.
Ndebele explained that his troubles began when Pick n Pay, the franchise agreement partner, terminated their agreement after realizing that their business model and plan, which they presented to the bank, were not sustainable or profitable. This termination made it challenging for Ndebele to meet the full monthly repayment amount of R78,000 due to the franchise’s closure.
Despite multiple meetings and raising his concerns with Nedbank’s accounts department, the bank has consistently refused to restructure the loan. Ndebele provided financial projections demonstrating his inability to make the full repayments, but the bank remains unwilling to accommodate his request.
Ndebele fears defaulting on his monthly premiums and potentially collapsing his business as a result. To worsen matters, the bank is now threatening to close his Pilgrims Corner business account, as well as the account for his other store in Pimville called Linda’s Market. Linda’s Market was not part of the Pick n Pay franchise and was financed solely by Ndebele.
If his business accounts are indeed closed, it would effectively put Ndebele out of business. Given his repayment history and efforts, one would expect the bank to show some leniency, but that does not seem to be the case.
An assurance from Vernon Scheepers of Nedbank to Ndebele has still not materialised: “Kindly be advised that our Business Banking Management confirmed that they are attending to your request. They confirmed that they have requested you to provide documents.”
He furnished them with the documents but still the bank won’t hear his plea.
