KARACHI – The mark-up rate for personal loans had reached the highest ceiling of 26-29 per cent in this financial year, The Nation learnt.
In 2007-08 the domestic banks were offering personal loans at 18-22 per cent, but in August the mark-up rate for the issuance of personal loans had been raised 26 to 29 per cent, sources in banking sector said.
M&S Money has confirmed it is to offer M&S Money 25 per cent cashback to customers who take out a personal loan.
Valid until October 29th, the offer is available on all personal loans taken out over 36 months or more, giving customers a refund of 25 per cent of the interest they have paid once their final repayment has been made. According to M&S Money, when the cashback reward is taken into account, the typical rate of 9.9 per cent APR on a ?10,000 loan over a 36 month period is equivalent to a rate 7.7 per cent p.a.
Coimbatore, Aug 29 Look at the hoardings dotting your route to the office and you might get misled in more ways than one. Take the instance of some banks offering you personal loans. The advertisement hoarding makes it seem easy. And the face on the hoarding seems positively inviting and friendly.
Just try taking that a bit seriously. As did Mr. Sheik Sintha, a colleague, who approached a public sector bank.
He was told that the bank was not giving personal loans. Despite my colleague trying to reason with the branch manager that he had availed a similar loan two years ago and repaid his dues promptly, the official maintained that the bank was not entertaining personal loan applications any more.
Loan rates is at its seven-year highs as lenders tighten their belts in the wake of the global credit crunch and pass the cost of higher risks to the end customers. The loan rate, since August 2006, for a ?5,000 loan over three years has increased by just under 3 percentage points, from 8.1% to 11% today. This fact is supplemented by the data of the price comparison website Moneyfacts.co.uk. The loan rate on unsecured loans have been at its highest level since 2001. The cheapest deals on a ?5,000 loan are also similar in the lines of 7 year’s past. Back then, the best deal was from Northern Rock at 8.5%; the best today is from Moneyback Bank at a competitive rate of 7.6%. Read also about new rules to stop mortgage fraud.
MUMBAI: Banks are increasingly allowing borrowers to convert credit card dues into personal loans in a bid to stave off defaults triggered by inflation and rising rates. All leading banks are offering investors an option to pay for purchases in installments. While some are being proactive, others are offering them as part of a restructuring package after classifying the customer as delinquent.
When you need to borrow money, you can get a personal loan from a bank or financial institution. This could be to take a holiday, buy a car, do home renovations, consolidate your debts or for your business or for a myriad of other reasons.
These loans are available with various lengths of terms and repayment options depending on your personal financial situation, your credit history and the amount of money you wish to borrow. In the UK, borrowers can choose either a secured personal loan or an unsecured personal loan.
Financial website, Moneyfacts.co.uk, has revealed that this month, interest rates on new personal loans have hit a six-year high.
According to the website’s data, this time last year, the most competitive ?5,000 loan year came with an interest rate of 6.3%.
Twelve months on, the most competitive loan for the same amount is sporting an APR of 7.6%.
Furthermore, the average rate for such a loan stands at 11% today, compared with 8.1% in August 2006.
Esther James, analyst at Moneyfacts.co.uk, comments:
“Family finances continue to be stretched, causing many to consider consolidating existing debts into one loan as a means of reducing monthly outgoings. Borrowers, however, will find that the reduction may not be as great as expected.
“14 lenders have increased loan rates in the last month, with two lenders, AA and Tesco Personal Finance, increasing rates twice.
“Abbey has increased rates by 5% to 12.9% on loans of less than ?4,950. If a consumer borrows ?4,950 from Abbey, they will be charged around ?165 per month, totalling ?5,940 over three years. If they borrow ?5,000, the rate drops to 7.9% and they will be charged around ?156 per month, totalling ?5,616.
Secured personal loans are those borrowings which mean a financial arrangement under which the money is granted against any of the client’s pledged collateral. The collateral may be a home, car, land or any other acceptable piece of property. As the these sums are approved against the property, the interest rate remains at a very low level. The loans intend to fulfill any type of personal needs. Low rate secured personal borrowings are a way of availing money against the pledged collateral to meet the personal needs.
Many homeowners are splashing out on home improvements, in a bid to make their property more sellable.
Lloyds TSB said today that 20 per cent more people applied for a personal loan in order to fund home renovations over the first half of this year than did so in the equivalent period in 2007.
Moreover, a poll from the bank found that 55 per cent are using the improvements to boost the value of their home – thereby counteracting some of the house price drops that have been experienced over recent months.