9. LOANS AND OTHER RECEIVABLES
Represent debtors for financing of mortgage loans (note 9.1) granted over varying terms of up to 120-months. The
underlying asset serves as security for the loans/agreements. Interest rates are market-related and can be variable or fixed, depending
on the specific agreement.
GROUP
NOTES
2020
R’m
2019
R’m
Gross investment in mortgage loans 2 167 2 321
Less: Unearned finance income (530) (731)
Carrying amount 1 637 1 590
Less: Current portion 11 (398) (374)
Total loans and other receivables before allowance for expected credit losses 1 239 1 216
Allowance for expected credit losses 9.1.4 (13) (12)
Total loans and other receivables 9.1 1 226 1 204
9.1 MORTGAGE LOANS
GROUP
NOTES
2020
R’m
2019
R’m
Within one year 398 374
After one year but not more than five years 882 761
More than five years 357 455
Carrying amount 1 637 1 590
Less: Current portion (398) (374)
Total mortgage loans before allowance for expected credit losses 1 239 1 216
Allowance for expected credit losses 9.1.4 (13) (12)
Total 1 226 1 204
9.1.1 Terms and conditions
Mortgage loans are repayable over two to 10 years, secured mainly by first bonds over property. The interest rates are
market-related, depending on the specific agreement.
9.1.2 Allowance for impairment
The calculation method for the allowance for impairment of the loans receivable must be read in conjunction with
note 11. Refer to note 11.5 since the allowance for impairments forms part of the portfolio impairment allowance.
9.1.3 Fair value
As indicated in note 9.1.2, the method of impairment allowance is disclosed in note 11 and the long-term loans receivable
need te be read in conjunction with note 11. The amortised cost of the long-term loans are reflected in note 9.1,
2020: R1,2 billion (2019: R1,2 billion), and approximates the fair value of these loans.
Senwesbel Limited Reg no: 1996/017629/06 SENWESBEL ANNUAL FINANCIAL STATEMENTS 2020 44