Arrie Rautenbach, Absa's head of retail markets, says that the repayment incentive was not only a way of thanking customers for choosing the bank, but was ultimately designed to reward borrowers for being responsible in the management of their loans. "If a customer is conscientious enough to remain up-to-date with their loan repayments, then we want to recognise that and give something back," he explains.
"One of the repayment incentives would also be to reduce overall loan costs for responsible customers. This will certainly assist our customers in the current challenging economic climate."
The benefit will be available to the bank's personal and micro loan customers with a loan term of 12 months or more. Its customers will be entitled to receive the cash back payment reward on the anniversary of the initial loan payout date. The customer's loan account must be paid up-to-date at the time of the cash back payout and will automatically be credited back into their loan account.
