To prevent clients from cashing out their investments to cover short-term expenses, trading platform EasyEquities has started offering them loans instead.
"We've seen our clients selling assets and withdrawing funds from the platform but then coming back later and reinvesting," Mbulelo Mpofana, the head of product of the EasyCredit facility, told News24.
EasyCredit now extends loans at the prime lending rate, plus 3%, using qualifying assets as collateral. Such collateral includes the top 100 shares on the JSE and certain liquid exchange-traded funds.