Financial services – Killer Kash http://killerkash.com/ Sun, 19 Jun 2022 21:48:47 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://killerkash.com/wp-content/uploads/2021/07/killer-150x150.png Financial services – Killer Kash http://killerkash.com/ 32 32 YES Bank’s plan to sell Rs 12,000-cr bad debts to ARC faces delay https://killerkash.com/yes-banks-plan-to-sell-rs-12000-cr-bad-debts-to-arc-faces-delay/ Sun, 19 Jun 2022 09:01:00 +0000 https://killerkash.com/yes-banks-plan-to-sell-rs-12000-cr-bad-debts-to-arc-faces-delay/ YES Bank’s plans to sell the bad debt come at a time when, for the financial year ending March 2022, the bank reported a profit of Rs 1,066 crore after two successive years of heavy losses. Business Standard has always endeavored to provide up-to-date information and commentary on developments that matter to you and that […]]]>

YES Bank’s plans to sell the bad debt come at a time when, for the financial year ending March 2022, the bank reported a profit of Rs 1,066 crore after two successive years of heavy losses.

Business Standard has always endeavored to provide up-to-date information and commentary on developments that matter to you and that have wider political and economic implications for the country and the world. Your constant encouragement and feedback on how to improve our offering has only strengthened our resolve and commitment to these ideals. Even in these challenging times stemming from Covid-19, we remain committed to keeping you informed and updated with credible news, authoritative opinions and incisive commentary on relevant topical issues.

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First published: Sunday, June 19, 2022. 2:31 PM IST

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Why are small business loans stopping in Australia? | Newcastle Herald https://killerkash.com/why-are-small-business-loans-stopping-in-australia-newcastle-herald/ Fri, 17 Jun 2022 18:22:01 +0000 https://killerkash.com/why-are-small-business-loans-stopping-in-australia-newcastle-herald/ Economic uncertainty is causing fewer small businesses to choose to take out debt to invest in their businesses. Photo: Shutterstock. This is branded content for Finofin. With the closure of the SME Loan Recovery Scheme at the end of June, Australian small businesses will have fewer opportunities to raise finance at a time when many […]]]>
Economic uncertainty is causing fewer small businesses to choose to take out debt to invest in their businesses. Photo: Shutterstock.

This is branded content for Finofin.

With the closure of the SME Loan Recovery Scheme at the end of June, Australian small businesses will have fewer opportunities to raise finance at a time when many factors are weighing on them.

The halt to the SME Loan Recovery Program, aimed at mitigating the impact of COVID-19 by providing government-backed loans to small businesses, comes around the same time local and global instability is making headlines. one of the newspapers.

From global and domestic inflation impacting monetary policy in nearly every country, tech companies bleeding into lower valuations and startups halting growth or even laying off staff, to the strict COVID- 19 in China leading to more supply chain disruptions, the war in Ukraine, the Australian election and its aftermath, there is a lot of uncertainty in the air. And when there is uncertainty, growth is hindered.

Will the end of the SME Loan Recovery Scheme weigh heavily on Australian SMEs?

The shutdown of the SME loan recovery program is not a big deal in itself, says Alon Rajic, managing director of Finofin, which operates the SME finance comparison site Small Business Loans Australia.

“The vast majority of applications [for the Loan Recovery Scheme] are denied anyway,” he said. “Based on a sample of several thousand business owners and sole traders who applied through Small Business Loans Australia partners, only a handful of businesses were found to be eligible.

Mr Rajic, whose company also runs guides for small businesses in the United States, said the Small Business Loan Recovery Program was very different from Paycheck Protection Program loans in the United States.

“For a PPP loan, you just had to make sure your application got through the door before the PPP money ran out, plain and simple,” he said. “When your application was approved – and it was only a matter of when rather than whether – you would become eligible for an instant government guaranteed loan capped at 1.75% per annum with an interest rate .

“This is a very different type of package to the Australian SME Loan Recovery Scheme, which is capped at 7.5% interest per annum. The amount of the loan turns into more of a grant to small businesses than in a small business loan, really.

“The PPP had an incredible impact on the small business economy in the United States during the COVID crisis, while the Small Business Loan Recovery Program did not and still does not. When it will stop soon, few people will notice.”

SME growth stagnates in May

While Mr Rajic doesn’t think the stimulus package has made much of a difference in terms of access to business loans, he thinks the other factors at play such as inflation, elections and global tensions are creating uncertainty for the vulnerable small business sector and fueling reluctance to take out loans to invest in their business.

When small businesses are afraid to borrow money, it’s a bad signal for future growth, he said.

“May is traditionally one of the strongest months of the year for small business funding – many businesses restock during this period leading up to the end of the financial year.

“This year is also the first proper post-COVID year for Australian small businesses, but there were still fewer loan applications and fewer small business loan approvals than expected, adjusted for seasonality.”

Mr Rajic said Australian small businesses appeared to be “sitting on the fence”, preferring to preserve cash and avoid debt as much as possible.

“It’s not a bad thing to do, given the potentially turbulent times ahead, but it does bode a bit ill for the broader economy,” he said.

“This is in line with the latest statement from the RBA’s May monetary meeting, which warned of a halt in growth in the coming months due to inflationary pressures and other global factors discussed earlier.”

Finofin is a content specialist company with over a decade of experience producing successful comparison websites globally, including specialist business loan site Small Business Loans Australia.

This is branded content for Finofin.

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Izwe Savings & Loans renovates Moglaa Health Center in Tamale https://killerkash.com/izwe-savings-loans-renovates-moglaa-health-center-in-tamale/ Thu, 16 Jun 2022 05:27:12 +0000 https://killerkash.com/izwe-savings-loans-renovates-moglaa-health-center-in-tamale/ Izwe Savings & Loans has renovated the Moglaa Health Center located in Tamale, the capital of the Northern Region. The renovation included tiling the examination and delivery rooms and painting the entire healthcare facility. The Moglaa Health Center serves over 14,000 people in 12 communities in the region, including Tarkpaa, Lang and Zaxi. The facility […]]]>

Izwe Savings & Loans has renovated the Moglaa Health Center located in Tamale, the capital of the Northern Region. The renovation included tiling the examination and delivery rooms and painting the entire healthcare facility.

The Moglaa Health Center serves over 14,000 people in 12 communities in the region, including Tarkpaa, Lang and Zaxi. The facility is so essential for the population because the three national Community Health Planning and Services (CHPS) complexes providing primary health care are not able to meet all the health needs of the population.

“In fact, all the communities are asking us for care. We only have three CHPS compounds, which is insufficient. We are grateful for the support from Izwe,” said Mr. Adams, who is also responsible for the three CHPS complexes in the region.

Why support

The Moglaa health center on which 12 communities depended was in poor condition. The exam room had an old cement floor with cracks, while the white walls had become stained. Parts of the walls also had cracks.

Mumuni Adams said the support from Izwe Savings and Loans could not have come at a better time, as he described the cracks in the walls as frightening.

He said: ‘Midwives are always complaining that it could come crashing down on them when dealing with clients. We are very happy that Izwe came at the right time to renovate the work room and give the establishment a facelift, we are very grateful for that”.

Another big concern was that the health center would often be overrun with livestock, including goats and cattle.

The Government of Ghana has provided three CHPS complexes in the 12 communities, but they are not enough to handle the huge population. As a result, many people still visit the Moglaa health center.

Izwe provides hospital supplies

Apart from renovating the Moglaa Health Center, Izwe Savings and Loans has also provided the facility with hospital supplies. These included blood pressure monitors, brand new chairs for patients and blankets. Mr Adams said each of the CHPS compounds in the communities would receive one of the blood pressure monitors, while the chairs and blankets would be used at the main health centre.

“Each CHPS compound will use one of the automatic blood pressure monitors, so it will be very useful and will increase our work,” he said.

A representative of the Chief of Moglaa, Kpanala Alhassan, said they were happy when they learned that the financial institution was offering support to the health center.

He said that Izwe’s kind gesture will remain in their hearts forever. Mr. Alhassan said the health center was very useful to the community, but its initial state was terrible, adding, “we don’t know how to thank Izwe.”

Confidentiality for patients

The labor room didn’t have much privacy, and passers-by often saw women receiving treatment. But the renovation of the service included the provision of screens to guarantee the privacy of women.

A pregnant woman, Adam Amina, said: “Due to the open nature of the place, anyone passing by could see what was going on in the facility, but with the refurbishment we can stay in the rooms and have some privacy.”

Moglaa Chief Naa Prince Williams Andani thanked Izwe Savings and Loans for the gesture and commended the health workers for their commitment to the people.

This story is part of the impact stories of Izwe Savings & Loans as it marks 10 years of operation in Ghana.

About Izwe

Izwe is originally from South Africa and currently has subsidiaries in Zambia and Kenya. The company has been operating in Ghana for 10 years, with a solid track record of providing financial services tailored to the needs of people from all walks of life, including entrepreneurs, traders, teachers, soldiers, healthcare workers, homeowners companies and all small and medium-sized enterprises. medium-sized company.

Izwe believes in supporting small and medium enterprises (SMEs) as they contribute immensely to the GDP of the economy. It is for this reason that Izwe has earmarked GHS 150 million to support SMEs in Ghana this year. Contact us on 0302 208 222 or text EMS to 4993 to get started.

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Starling grabs £500m mortgage pound as replacement for Covid loans https://killerkash.com/starling-grabs-500m-mortgage-pound-as-replacement-for-covid-loans/ Tue, 14 Jun 2022 04:00:41 +0000 https://killerkash.com/starling-grabs-500m-mortgage-pound-as-replacement-for-covid-loans/ Starling Bank has agreed to acquire a mortgage portfolio worth around £500m as the digital challenger tries to expand its assets beyond Covid-19 loans. The start-up, founded by Anne Boden in 2014, is buying the loan portfolio from the specialist lender Masthaven, according to sources familiar with the matter. The acquisition will help Starling, which […]]]>

Starling Bank has agreed to acquire a mortgage portfolio worth around £500m as the digital challenger tries to expand its assets beyond Covid-19 loans.

The start-up, founded by Anne Boden in 2014, is buying the loan portfolio from the specialist lender Masthaven, according to sources familiar with the matter.

The acquisition will help Starling, which counts Jupiter Asset Management and Goldman Sachs among its investors, diversify lending away from the government-backed Covid-19 loans that make up most of its assets.

The bank’s latest accounts at the end of June show it lent a total of £2.3billion, including £2.2billion in rebound loans and the business interruption loan scheme. coronavirus activity. However, concern is growing about the extent of potential fraud linked to bounced loans and the degree of banks’ exposure to bad debts.

In an attempt to diversify, Starling made an offer for other loan books. It acquired Fleet Mortgages in July last year for £50m in cash and shares. The Hampshire-based company focuses on lending to professional homeowners through financial advisers.

It emerged earlier this year that Starling was also in the running for a £1billion mortgage book sold by specialist lender Kensington, pitting the challenger against Barclays.

Starling has been in the spotlight in recent weeks after Lord Theodore Agnew claimed it was one of the worst banks at preventing fraud in government emergency loan schemes.

Some banks offered rebound loans of up to £50,000 during the pandemic to struggling small businesses and the Treasury pledged to cover losses if borrowers failed to repay.

The National Audit Office estimated that around £5bn of the £47bn loaned out under the scheme could be fraudulent, although it warned that this forecast was uncertain.

Lord Agnew resigned as the government’s anti-fraud minister in January, complaining that the government had poor oversight of the bounce-back loan scheme in particular. Last month, he pointed the finger at Starling, saying the bank had acted against the interests of government and taxpayers. Starling had only loaned out £23m in November 2019. By June 2021, he had handed out £1.6bn in rebound loans.

The bank has denied Lord Agnew’s claims and asked the Tory peer to withdraw them.

Masthaven’s mortgage sale process follows its announcement earlier this year that it was withdrawing from the UK banking sector. The lender, which acquired a banking license in 2016, said it made the decision after realizing a “significant” amount of long-term capital was needed for its future growth plans.

Starling and Masthaven declined to comment.

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Canceling Corinthian loans is just the start of abolishing student debt https://killerkash.com/canceling-corinthian-loans-is-just-the-start-of-abolishing-student-debt/ Sat, 11 Jun 2022 13:59:05 +0000 https://killerkash.com/canceling-corinthian-loans-is-just-the-start-of-abolishing-student-debt/ The Biden administration’s recent cancellation of $5.8 billion in loans held by 560,000 borrowers who attended Corinthian Colleges did not materialize out of the blue — it came after years of class action backed by a syndicate of debtors called Debt Collective. And while all of us in this movement welcome the news about Corinthian […]]]>

The Biden administration’s recent cancellation of $5.8 billion in loans held by 560,000 borrowers who attended Corinthian Colleges did not materialize out of the blue — it came after years of class action backed by a syndicate of debtors called Debt Collective.

And while all of us in this movement welcome the news about Corinthian Colleges – a for-profit chain of schools that closed seven years ago after lying and defrauding borrowers – we also know that this Victory was just the beginning of what must happen to abolish the immoral student debt that continues to plague millions of people across the country.

The road to the Biden administration’s recent debt cancellation was paved by former Corinthian Colleges students who, with the help of the Debt Collective, launched a debt strike in 2015. Borrowers demanded a relief from the Ministry of Education. I joined the campaign soon after because I recognized the strikers’ story as my own.

My for-profit college scam story begins in 2009 after I graduated from high school. Like most working-class people, I had grown up thinking that borrowing money for school was a safe and necessary investment to get ahead. But since neither of my parents had attended college, I didn’t know much about the enrollment process.

During my senior year of high school, I received a postcard from the New England Institute of Art, which promised careers in media, including film, television, and games. I have always been passionate about media arts. But my immigrant parents feared that such a career path would be too risky. Thanks to the New England Institute of Art’s bold job placement claims, some campuses boasted that between 88.5% and 89.5% of its graduates had found employment in their chosen fields, even though ( like other for-profits) they counted any job in their numbers, including fast food and retail – even my wayward parents felt safe sending me to school. The school bombarded us with communications that the education would be “affordable”.

I didn’t know what a “for-profit” school was when I started. It never occurred to me that a school that advertised on billboards, on public transport, on television and online could be lying. If you had told me that a college accredited by the Ministry of Education could get away with enriching investors by putting students in debt, I would have said that you were delusional. Yet that is exactly what is happening. In fact, schools like mine are still open and cheating students even though the Ministry of Education has all the power to shut them down.

Shortly after signing up, I began to suspect something was wrong. The students I knew graduated. But the careers they were promised were not there for them. The few media industry professionals I was able to meet at school explained why art institute graduates could not be hired in the field. They said our education was not up to par. It was humiliating. But I couldn’t do anything with what I knew.

What’s even more disturbing is that I didn’t realize I was taking out loans for the first three years. School officials had assured me that the Pell Grants would cover my exorbitant tuition. They asked me to sign documents that I did not understand. They said it was necessary for me to continue my studies and used a lot of language that I did not understand. They acted like I had to understand everything they said, and I was afraid I looked “stupid,” so I signed. In my senior year, I agreed to take out a loan because my scholarships were exhausted. As I got closer to graduation, the costs kept rising. When I saw the loan statement, I realized that the school had signed me up for loans for years without my knowledge.

In August 2013, feeling disgusted and ashamed, I quit school. Disgruntled former students were gathering online to vent their frustrations, so I knew I was not alone. I had also taken notes of my experiences and collected as many documents from school as possible. In May 2015, I organized a Facebook group where we could share our stories. Soon the group filled up with former students from art institute campuses across the country. It was cathartic and revealing. But it also exposed many of us to more cruelty. Some former students and professors have joined the group. They called us lazy and blamed us for not being good enough.

Eventually our group grew so large that our complaints were too loud to ignore. We became visible to more victims of for-profit college fraud. This led us to the Debt Collective as well as a team of attorneys from Harvard’s Project on Predatory Student Lending, who reviewed all of the documents we had gathered to prove the school’s wrongdoing and created a letter of legal claim on our behalf, which ultimately led to the filing of a formal complaint. I learned that other for-profit colleges were also engaging in the same predatory tactics. My co-debtors and I felt galvanized and motivated to demand the cancellation of our loans.

Around this time, I also learned that the New England Institute of Art’s actual placement rate for my program was 22%, according to a now-deleted page on its own website that I captured in a screenshot . The figures they announced that convinced me and my parents to enroll in the school were pure lies.

Former for-profit students like me have been fighting for years. From rallies in New Orleans to demonstrations in Washington, DC, we have kept the pressure on the federal government through three presidential administrations. In the process, we stopped viewing debt as an individual burden. The fundamental problems are predatory lending, deceptive marketing practices and the deliberate exploitation of students for profit. We also know that for-profit colleges are not “bad apples” in an otherwise fair higher education system. Schools like art institutes only exist because there is a market for them and because they cater to some students and not others. The rich and well-connected don’t send their own children to places like the New England Institute of Art.

It’s time to face the truth that higher education promises what it cannot deliver to most borrowers who are not from affluent backgrounds. This is why so many of my generation question the merits of going to college given the cost. It is a generational betrayal that demands redress.

The cancellation of the loans of former Corinthian students is a great victory. But this is only the beginning. Ultimately, we must abolish all student debt, for everyone, and publicly fund college education and make it free for everyone. There is no way the Department of Education system can justify keeping former students of art institutes in debt, let alone all the other people who have been sold into schools of all kinds. Borrowers like me are just beginning to speak up. This week’s announcement that over half a million former Corinthian students will soon be debt free shows that we can win. And we won’t give up because our future depends on it.

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A better and fairer way to manage student loans https://killerkash.com/a-better-and-fairer-way-to-manage-student-loans/ Fri, 10 Jun 2022 12:32:10 +0000 https://killerkash.com/a-better-and-fairer-way-to-manage-student-loans/ President Joe Biden is set to “write off” $10,000 in student loan debt per borrower, for a total of $360 billion in loan elimination. It may seem like a simple and straightforward solution, but the direct result will be to increase inflation, drive up college costs even further, and put less expensive and more effective […]]]>

President Joe Biden is set to “write off” $10,000 in student loan debt per borrower, for a total of $360 billion in loan elimination. It may seem like a simple and straightforward solution, but the direct result will be to increase inflation, drive up college costs even further, and put less expensive and more effective education alternatives at a disadvantage.

College is much more expensive than it should be, and many students graduate with significant loan debt. Worse still, employers are increasingly reporting that colleges aren’t giving students the education and skills they need in the workplace.

These are important issues that require solutions. But Biden’s plan documents the fact that government policies are the cause of these problems. Student loan “forgiveness” will exacerbate these problems, not eliminate them. And it is morally reprehensible, economically wrong and pedagogically harmful.

Morally wrong. Forgiveness of a debt might be a morally virtuous act, but forgiveness – by definition – can only come from the one to whom the debt is owed. In the case of federal student loans, it is the taxpayer. Biden’s plan to transfer $360 billion in individual student loan debt to taxpayers without their consent is closer to theft than “forgiveness.”

>>> Biden’s prostration on student loans doubly hurts low-income taxpayers

Student loan debt forgiveness is also incredibly regressive, as people with higher education tend to have the highest incomes. Fifty-six percent of all student loan debt belongs to a select group of people with higher degrees, such as doctors, lawyers, and engineers. Meanwhile, the much larger group of people in the United States — 37% of all adults age 25 and older — who have a high school diploma or less have no student loan debt.

The Committee for a Responsible Federal Budget estimates that households in the top two income quintiles would receive 57% of the student loan “forgiveness,” while those in the bottom two quintiles would receive only 17%. Working-class Americans without a college degree, people who went to school without a loan, and those who worked hard to pay off their loans will be the ones paying the “forgiveness” for other people’s student loans.

Economically bad. The economy and inflation are the main concerns of Americans today, and canceling loans would hurt both. In addition to trillions of new dollars in federal spending, the Committee for a Responsible Federal Budget estimates that 90% of new consumption induced by student loan forgiveness would result in price increases instead of economic growth. Stimulating spending by high-income households when the average worker is $1,800 poorer over the past year due to inflation is bad economic policy.

Pedagogically harmful. More pertinently, the cancellation of student loans would exacerbate existing problems in the American higher education system. The root cause of issues such as college costs has more than doubled (in real and inflation-adjusted dollars) over the past two decades, low graduation rates – with only three in five students earning a four years in six years – and graduates failing to acquire the knowledge and skills they need in the workplace is government intervention in higher education.

Student loan subsidies increase education costs without increasing the value of degrees. A Federal Reserve study found that every dollar of federally subsidized student loans colleges receive results in a 60-cent increase in tuition. Federal subsidies for higher education have also limited the growth of more efficient and less costly alternatives, such as performance-based education programs and revenue-sharing arrangements and employer-driven education.

The discount would likely encourage students to borrow at even higher rates in the future, in anticipation that they, too, would have some of their loan balance forgiven. And they might also be incentivized to attend more expensive schools.

>>> Blanket loan cancellation, loan subsidies and failed job training programs are not the answer to labor shortages and inflation

Instead of adding another problematic and harmful policy on top of existing ones, federal policymakers should remove current policies that are driving up the costs of education, increasing student loan debt, and deepening the growing skills gap.

Among the solutions in a recent Heritage Foundation report:

  • Phase out federal grants for higher education to reduce inflated costs and allow for a more level playing field between different education options.
  • Allow apprenticeship programs to grow by asking the Department of Labor to revive the nascent but thriving industry-recognized apprenticeship program.
  • End failed federal job training programs so that individuals can obtain more effective training from the private sector and more responsive initiatives from state and local governments.

Removing problematic policies may not be as politically appealing as “giving” the wealthiest Americans $10,000 of other people’s money, but it would do much more good for civil society, the economy and the future of the American workforce.

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SBV announces home loans worth VND 2.2 quadrillion and highlights risks https://killerkash.com/sbv-announces-home-loans-worth-vnd-2-2-quadrillion-and-highlights-risks/ Wed, 08 Jun 2022 04:11:49 +0000 https://killerkash.com/sbv-announces-home-loans-worth-vnd-2-2-quadrillion-and-highlights-risks/ Investment in corporate bonds With regard to loans to credit institutions, the Ministry of Finance (MOF) indicated that in April 2022, loans granted to finance investments in securities represented 0.5% of total outstanding loans, mainly loans. short-term loans (98%) and used loans. invest in government bonds. Total investment in corporate bonds by credit institutions reached […]]]>

Investment in corporate bonds

With regard to loans to credit institutions, the Ministry of Finance (MOF) indicated that in April 2022, loans granted to finance investments in securities represented 0.5% of total outstanding loans, mainly loans. short-term loans (98%) and used loans. invest in government bonds.

Total investment in corporate bonds by credit institutions reached 320.4 trillion VND, which accounted for only a small proportion, 2.86%, of total outstanding loans. This shows that investments by credit institutions in corporate bonds are still under control.

In an effort to control risks related to securities and corporate bonds, to ensure the safety of credit institutions, SBV indicated that the legal framework has been gradually improved with stricter regulations.

When issuing bonds, credit institutions must comply with the regulations stipulated in the securities law and the legal documents that guide the application of the law, and at the same time comply with the regulations on the ratios of security in force as prescribed.

The central bank has also strengthened the review, inspection and monitoring of credit granted to finance banks’ investments in corporate securities and bonds, to uncover risks and take corrective action.

SBV asked credit institutions to reassess credit granting activities, use risk management measures, improve the effectiveness of internal reviews on credit granting, including to private companies, large real estate companies and related persons in order to minimize risks.

Regarding the existing issues, SBV said that the risks of the securities and corporate bond market mainly come from the operations of listed companies and bond issuers (under the leadership of other ministries and branches). The inspection and supervision of bank operations related to the field is only one risk management measure of banks.

Therefore, there should be comprehensive measures with the cooperation of relevant ministries and branches to make the stock market and corporate bond market “clean” and healthy, according to SBV.

The SBV said it is considering changing some regulations that govern the purchase and sale of corporate bonds by credit institutions, and tightening administrative requirements and standards for credit institutions when they join. the corporate bond market to provide safety and help the market grow in a sustainable manner.

The central bank has also stepped up inspection and monitoring of corporate bond investments, applied measures to uncover risks and violations, and issued warnings whenever risks are detected.

2.2 quadrillion VND of loans to the real estate sector

SBV reported that at the end of April 2022, the total outstanding loans to the real estate sector reached VND 2,288,278 billion, an increase of 10.19% compared to the end of 2021, accounting for 20.44% of the total outstanding loans of the whole economy. , while the bad debt ratio was 1.62%.

SBV asserts that real estate is one of the risky sectors for banking operations and requires strict control.

The strong fluctuations of the real estate market, the inflation of real estate prices and the abnormally high prices of land auctions affect the granting of loans and the valuation of mortgaged assets.

The supply of credit to the real estate sector as well as the quality of credit are still under control. However, in order to minimize the negative impact of the real estate market on the macroeconomy, SBV believes that there should be comprehensive solutions with the coordination of relevant ministries, departments and sectors to ensure a healthy, safe and sustainable real estate market.

According to the SBV, around 94% of the outstanding loans granted to the real estate sector are medium and long-term loans (10-25 years), while banks’ capital is mainly short-term capital. The difference in deposit and lending conditions and in interest rates presents high risks for banks.

As for a plan for the immediate time being, the central bank will continue to direct banks to expand credit in a safe and efficient manner; closely monitor loans granted to risky sectors of activity, including investments in real estate.

At the same time, it will create favorable conditions for institutions and individuals to access bank loans to buy houses for their own accommodation, especially social housing products, houses for workers and low-cost commercial housing. .

Luongbang

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This Little-Known Philadelphia Nonprofit Loans Money to Small Businesses Even After Banks Turned Them Away https://killerkash.com/this-little-known-philadelphia-nonprofit-loans-money-to-small-businesses-even-after-banks-turned-them-away/ Mon, 06 Jun 2022 13:01:18 +0000 https://killerkash.com/this-little-known-philadelphia-nonprofit-loans-money-to-small-businesses-even-after-banks-turned-them-away/ Your small business is looking for financing to develop but the banks are not interested because you are too small? Or you don’t have a long financial history or maybe you have suffered from financial problems in the past? You are not out of options. You should talk to the Philadelphia Industrial Development Corporation, now […]]]>

Your small business is looking for financing to develop but the banks are not interested because you are too small? Or you don’t have a long financial history or maybe you have suffered from financial problems in the past? You are not out of options. You should talk to the Philadelphia Industrial Development Corporation, now known as PIDC.

Don’t be put off by the word “industrial” either. The PIDC is an independent, nonprofit organization co-founded by the City of Philadelphia and the Greater Philadelphia Chamber of Commerce that provides financing to Philadelphia businesses using city money and other public and private sources.

“The mayor and his key cabinet members, as well as members of the city council sit on our council and the Chamber of Commerce also appoints some of our council members,” said Anne Bovaird Nevins, president of the IPDC.

The aim of the organization – which has around 55 people in two towns – is to help businesses in the town grow and create jobs. So any fundraising project that seeks to achieve these goals is something the organization, which began in 1958, will consider. The IPDC provided capital and resources that helped revitalize neighborhoods, launch the Philadelphia Shipyard, and help even the smallest businesses when they couldn’t get help from other sources.

READ MORE: Philly and IPDC to provide $9 million relief fund for small businesses. Postponed tax deadlines.

David Sims is an excellent example of a small business owner who recently benefited from IPDC funding. His nine-person Cedarbrook-based catering business – Eatable Delights Catering – needed capital to relocate, and he was struggling due to a poor credit history.

“I went to PIDC because I was in a bad rental situation and wanted to buy my own property,” he said. The organization helped Sims clean up his past privileges and put him through one of their popular “boot camps” which teaches participants the basics of business management.

“They were really good at guiding me and holding my hand because I didn’t know anything about getting a commercial mortgage,” Sims said.

There is a misconception that the IPDC only funds real estate transactions. This is not the case.

Since its inception more than 60 years ago, the organization has provided $31 billion to Philadelphia-based businesses – manufacturers, commercial and retail, as well as minority and nonprofits – in approximately 10,000 transactions, mainly through loans, tax-exempt financing and technical assistance. . Funding is also provided for working capital and for the purchase of equipment and other assets.

PIDC funds its operations through transactions, financing and advisory fees. The organization also hosts business creation workshops in partnership with Comcast RISE and partners with dozens of organizations both nationally and in the region that provide small business support and services.

The IPDC also finances developers looking to start or complete neighborhood projects and helps its clients take advantage of certain tax advantage programs for projects in disadvantaged and low-income areas. It also offers tax-exempt bond programs that benefit both manufacturers and nonprofits. Among its recent activities, the organization has invested $27 million in color developer-led projects that have supported more than $115 million in additional investments since the start of 2020.

After being turned down by his existing bank, Stephen Reeves – who runs a diversity, equity and inclusion nonprofit called Montage Diversity – sought the services of PIDC for a $50,000 loan to help to hire a new employee in 2020. Reeves said he had to provide the “typical documentation” for a loan, including tax returns and financial documentation and was able to easily receive the funds directly from IPDC.

“Apart from some banks, the IPDC is open to having conversations with entrepreneurs because that’s what they’re there for,” he said. Reeves plans to approach the organization for more funding in the not too distant future.

Although many small businesses seek loans from the IPDC instead of a traditional bank loan, the organization also partners with banks to help provide additional financing that complements what a bank already offers.

“Perhaps a business needs a term loan and the term loan is beyond what the bank is willing to do for that particular customer,” Bovaird Nevins said. “This could be a great opportunity for us to get involved. We have much more flexibility and can even – in some cases – get loans approved that are under-secured.

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Why High Credit Borrowers Take Larger Personal Loans https://killerkash.com/why-high-credit-borrowers-take-larger-personal-loans/ Sat, 04 Jun 2022 13:36:28 +0000 https://killerkash.com/why-high-credit-borrowers-take-larger-personal-loans/ Select’s editorial team works independently to review financial products and write articles that we think our readers will find useful. We earn commission from affiliate partners on many offers, but not all offers on Select are from affiliate partners. Personal loans can undoubtedly be a great financing option for just about any consumer, as they […]]]>

Select’s editorial team works independently to review financial products and write articles that we think our readers will find useful. We earn commission from affiliate partners on many offers, but not all offers on Select are from affiliate partners.

Personal loans can undoubtedly be a great financing option for just about any consumer, as they give you access to cash fairly quickly, and often at a lower interest rate than your credit card. standard.

Although borrowers of all credit levels use personal loans, a recent study by LendingTree found that those with higher credit scores take out personal loans that are on average much higher than those taken by their counterparts in low credit rating.

Specifically, the study showed that personal loans for high-scoring borrowers (with credit scores of 720 and above) averaged $18,443, or 122.2% higher than the average for $8,301 for those with a credit score below 720. The study looked at data on closed personal loans. between April 2021 and March 2022.

The reason this data is so important is that it draws our attention to a clearer interpretation of how personal loans play different roles for different types of consumers. You might feel surprised at first that borrowers with high credit ratings take on more personal debt, but there are a few factors at play here.

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Why High Credit Borrowers Can Take Out Larger Personal Loans

The LendingTree study infers a few reasons why personal loans for high-score borrowers were on average much higher than for those with lower credit scores.

First, having a better credit score generally gives you access to larger loan amounts, so it’s not as much of a barrier to getting a high loan amount as it can be for someone with a high score. lower credit. Lenders view these borrowers as likely to repay their debts.

Second, high-scoring borrowers also typically have higher incomes and therefore the ability to take out larger loans that involve larger monthly payments.

Third, high-credit borrowers take on more personal debt for a good reason: they’re looking to build wealth. One such example includes borrowing money to finance home improvements, which in turn increase the resale value of one’s home.

“Having a greater margin of financial error allows high-income and high-income people to use debt as an investment,” says Matt Schulz, chief credit analyst at LendingTree, in the company’s press release. .

The personal loan that suits you

Borrowers with good credit ratings are certainly in luck as they are more likely to receive the lowest interest rates and the best terms on a personal loan. Regardless of your credit score, however, the good news is that there are options to help just about anyone finance a major purchase.

For those with excellent credit, Select rated LightStream as the best overall personal lender. LightStream offers some of the lowest interest rates available and you can take out a personal loan for almost any purpose except for higher education and small businesses. Plus, you’ll usually receive your funds the same day and there are no origination fees, administration fees or prepayment fees.

LightStream Personal Loans

  • Annual Percentage Rate (APR)

    3.49% to 19.99%* when you sign up for autopay

  • Purpose of the loan

    Debt consolidation, renovation, car financing, medical expenses, marriage and more

  • Loan amounts

  • Terms

  • Credit needed

  • Assembly costs

  • Prepayment penalty

  • Late charge

Those with fair or good credit may consider our overall top pick: Upstart. Borrowers can request up to $50,000 and the minimum credit score requirement is 600. Applicants with no credit history will also be considered. There are no penalties for prepaying your balance, although Upstart does charge origination fees (up to 8% of the amount you borrow) and late fees ($15 or 5% of the balance overdue, whichever is greater).

Beginner personal loans

  • Annual Percentage Rate (APR)

  • Purpose of the loan

    Debt consolidation, credit card refinancing, marriage, moving or medical

  • Loan amounts

  • Terms

  • Credit needed

    FICO or Vantage score of 600 (but will accept applicants whose credit history is so poor that they have no credit score)

  • Assembly costs

    0% to 8% of target amount

  • Prepayment penalty

  • Late charge

    Greater of 5% of monthly amount past due or $15

Borrowers with bad credit can try LendingPoint, which can approve applicants with a minimum credit score of 580. It also offers fast application with same-day approval and possible next-day funding (after verification and approval of final documents). ). Note that origination fees vary from 0% to 6% and interest rates can reach 35.99%, which is usually the case with personal loans that allow low credit applicants to apply.

LendingPoint Personal Loans

  • Annual Percentage Rate (APR)

  • Purpose of the loan

    Debt consolidation, marriage, auto repair, home renovation and more

  • Loan amounts

  • Terms

  • Credit needed

  • Assembly costs

  • Prepayment penalty

  • Late charge

    Currently, LendingPoint does not charge late fees but reserves the right to assess late fees of up to $30. Fees vary by state.

Editorial note: Any opinions, analyses, criticisms or recommendations expressed in this article are those of Select’s editorial staff only and have not been reviewed, endorsed or otherwise endorsed by any third party.

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Banks’ asset health improves with bad debts down in first quarter https://killerkash.com/banks-asset-health-improves-with-bad-debts-down-in-first-quarter/ Thu, 02 Jun 2022 03:00:02 +0000 https://killerkash.com/banks-asset-health-improves-with-bad-debts-down-in-first-quarter/ SEOUL, June 2 (Yonhap) — South Korean banks’ non-performing loans declined in the first quarter of this year, indicating an improvement in their overall asset strength, data showed Thursday. Local banks’ bad debts stood at 10.8 trillion won ($8.6 billion) at the end of March, down 1 trillion won, or 8.1 percent, from three months […]]]>

SEOUL, June 2 (Yonhap) — South Korean banks’ non-performing loans declined in the first quarter of this year, indicating an improvement in their overall asset strength, data showed Thursday.

Local banks’ bad debts stood at 10.8 trillion won ($8.6 billion) at the end of March, down 1 trillion won, or 8.1 percent, from three months earlier, according to preliminary data from the Financial Monitoring Service (FSS).

Their ratio of non-performing loans to outstanding loans fell by 0.05 percentage point to 0.45%. The ratio was also down 0.17 percentage points from a year earlier.

Bad debts refer to loans where interest payments have been past due for three months or more.

Of the total nonperforming loans, business loans accounted for 9.2 trillion won, while household credit stood at 1.5 trillion won, according to the data.

At the end of March, banks’ loan loss reserves stood at 181.6%, up 15.7 percentage points from three months earlier. They were also 44.3 percentage points higher than the previous year.

The FSS said the health of banks’ assets has improved as these latest figures indicate, but this will continue to prompt them to strengthen their shock absorption capacities as market volatility could intensify amid concerns about recent spikes in borrowing costs and a possible economic downturn.

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