TymeBank will acquire 50 of Sanlams retail lending unit, marking a strategic push into unsecured credit for low-access consumers in South Africa.
The R751.5 million 42.04 million venture includes loan book transfer, equity stake, and shared insurance profit, blending digital reach with underwriting strength.
The co-branded JV aims to scale affordable loans and credit life products via TymeBanks digital platform and Sanlams lending infrastructure.
Tyme Bank, the digital banking group backed by Africas first Black billionaire Patrice Motsepe, has entered into a strategic retail credit joint venture with Sanlam Life, a subsidiary of Africas largest non-banking financial services group, Sanlam.
The agreement, valued at approximately R751.5 million 42.04 million, will launch a retail credit joint venture aimed at expanding access to credit for underserved South Africans with a focus on unsecured personal loans and credit life products.
Expanding a digital credit footprintAccording to the SENS announcement today , Sanlams unsecured lending arm, Sanlam Personal Loans SPL, will create a new registered credit provider entity, which will take over SPLs loan origination business.
Tyme Bank will acquire 50 percent of the new venture for R31.5 million 1.76 million and purchase half of SPLs existing retail credit loan book for an estimated R400 million 22.38 million, plus the capital value. Additionally, Tyme Bank will subscribe to a Reference Share for R320 million 17.91 million, securing a 50 percent stake in the credit life insurance profits of the JVCo.
SPL, which offers unsecured loans of R5,000 279.81 to R300,000 16,789 over 12 to 72 months at fixed interest rates, held a loan book of R5 billion 279.88 million as of Dec. 2024. The newly formed joint venture will originate and administer these loans under the Sanlam-Tyme Bank brand, targeting digitally savvy consumers in need of affordable personal credit.