Challenge Finance raises rates

Press, 29 November 1979, Page 20

Challenge Finance raises rates

Challenge Finance, Ltd, has increased interest rates on deposits of six months and over. The increases take the six months secured rate to 12$ per cent, while the top rate moves to 15 per cent for three, four, and five year terms.

Challenge Finance’s general manager (Mr J. L. Chisholm) said that the decision to raise interest rates was in response to market demand. The current proposal that Challenge Finance and Broadlands merge ther interests had no bearing on it, he said. “Our move follows a definite consumer demand for loan funds. In the first fotr months of this financial year our lending has risen $5.5M. This increase, when measured on an annual basis, represents a 25 per cent growth in loan outstanding,” Mr Chisholm said. “Probably the most

encouraging growth had come in car financing. Chal< lenge Finance is a majoi financier of cars in the country, and we have strong allegiances with motor vehicle dealers. “It is clear that there has been considerable activity in this area over recent

months, and we expect this to continue until at. least the early part of 1980,” Mr Chi< sholm said.

Mr Chisholm believed tha( people are spending more on home improvements. “The

demand for funds in this area has been buoyant, and continues to increase.” hi said.