FNB and Edcon link up to sell home loans

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Edcon and FNB are teaming up to offer home and personal loans to Edcon’s 4,1 million store-card customers in a move that is likely to spark further competition for new banking customers. The loans will be available to Edgars and Jet customers with store cards and good credit histories from the end of 2006. FNB will carry the risk for the loans, which include personal loans of more than R10 000 and home loans. Edcon will share in the profit and will contribute to marketing costs. Home loans will be offered to first-time buyers and to customers wanting a better deal. The offering will be extended to the wider public from the middle of 2007. The loans will also include a rewards programme in the form of store vouchers, while customers will be offered discounted attorneys’ fees for conveyancing and free borrower education.