2021, the year of records for consumer finance companies

The financing granted in 2021 by consumer credit companies crossed the 20 billion DH mark, to reach 20.55 billion at the end of last December. That is an increase of 40% over one year. This evolution is carried by the credits intended for the purchase of vehicles which jumped by 44.5% to 12.64 billion DH, a record annual amount. The sector thus posted a historic overall outstanding amount of 61.37 billion at the end of 2021, including 35.3 billion dirhams for vehicle financing.

2021 will have been a historic year for consumer credit companies, driven by the automotive market. Financing for the year crossed the bar of 20 billion dirhams, to reach 20.55 billion at the end of last December. That is an increase of 40% compared to the annual production of 2020. This evolution is driven by the credits intended for the purchase of vehicles which have obligations of 44.5% to 12.64 billion DH, a record annual amount. . 2021 also saw very good momentum for personal loans. New financing amounted to 7.34 billion dirhams, an increase of 35.5%. This rebound in activity enabled finance companies to reach a historic level of consumer loans. It exceeded for the first time the milestone of 60 billion DH to 61.37 billion. That is an increase of 8.6% compared to the end of 2020, according to provisional data from the APSF (Professional Association of Finance Companies). This performance reflects, in particular, the acceleration of automobile financing, the outstanding amount of which stood at 35.30 billion dirhams, up 11.1%. Personal loans have increased by 5.3% to 25.37 billion DH. Regarding credits for domestic equipment, they gained 5.8% to 397 million DH. Revolving outstandings also increased by 7.2% to MAD 300 million.

As a reminder, revolving or revolving credit offers a permanent reserve of money to the customer who uses it in part or in full. Interest paid is only due on the amount actually used. The customer has a card assigned to him by the company. This card allows purchases from affiliated merchants and, in some cases, withdrawals from ATMs. It should be noted that the consumer credit sector is currently characterized by increased competition, which has resulted in particular, in recent years, in a movement of concentration. Indeed, the number of companies has continued to decline to reach 12 players since 2018 compared to 36 in 1996.

This change is explained by the restructuring and reorganization movement experienced by companies in the sector following the reduction in the maximum rate of conventional interest as well as by the strengthening of the regulatory and prudential framework for better customer protection. According to the latest figures (at the end of 2020), the share held by the three major consumer credit companies in the total assets of the sector amounts to approximately 60%. That of the first five is, for its part, at 87%. In addition, nearly 95% of the sector’s activity is carried out by 7 companies backed by financial institutions. Wafasalaf retains its leading position in the consumer credit market both in terms of production and outstandings.

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