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Client Trust: LLSA’s Measure of Success

Client Trust: LLSA’s Measure of Success

Traditional hurdles to acquiring loans are swiftly vanishing owing to the rapid rise of digital solutions on a global scale.

The advent of online micro-loans in South Africa has completely changed how people obtain financial aid . . . Enter Lime Loans South Africa (LLSA).

Trends may change as fast as systems evolve. And yes, a little over six years down the line, LLSA is showing steady growth through disruptive innovation, but we are not going it alone. Informed by the knowledgeable – our clients.

Sure, we anticipate, but we also listen very carefully to our clients’ needs and aim to consistently exceed expectations.

Our growth made possible by our loyal borrowers. A fair and equitable exchange, over time, inspires trust. Client trust.

While loan amounts of between R700 and R1 500 remain extremely popular, the fastest growing demand is in the larger loans bracket.

In 2023, more than 15% of the company’s borrowers took out loans of between R2 100 and R2 400 – compared to 6% in 2022 and less than 5% in 2021.

It is very gratifying to note that larger loan amounts, with longer repayment periods, point to an increased level of financial literacy. These products require prolonged financial discipline.

The significant growth in this product segment not only shows LLSA can trust its clients – it proves our clients trust LLSA.

Meet LLSA’s clients

Male/Female:

  • 50,6% male
  • 49,4% female

Age:

  • 26–35 years – 47%
  • The 36–45-year-old group represents around a third of the client base
  • 18–25-year-olds, combined with the 46–55-year-olds, account for around 10%
(These age profiles have remained mostly unchanged since 2021)

Where do they live?

  • Gauteng – 44%
  • Western Cape – 21%
  • KwaZulu-Natal – 12%
  • The balance of LLSA’s client base live in the Eastern Cape, Mpumalanga, North West, Limpopo, Free State and the Northern Cape

Where do they work?

  • The majority – more than a third – of LLSA’s clients are service workers
  • Blue Collar workers make up about 19%
  • Around 10% of LLSA’s borrowers work in each of these sectors: Healthcare, Education, Finance.

What are their needs?

Repayment Period:

  • Most clients (29%) apply for loans with a 26-to-29-day term
  • Fewer clients (14%) favor shorter term loans of 24 to 25 days
  • Twelve percent prefer a repayment period of 30 to 31 days

Loan Amount:

  • A loan of R1 500 is applied for by one in every five borrowers (19%)
  • Loan amounts of between R700 and R900 are equally as popular

The fastest growing demand, however, is in the larger loans bracket. In 2023, more than 15% of the company’s borrowers took out loans of between R2 100 and R2 400. In comparison to 6% in 2022 and less than 5% in 2021.