Ghana Cedi Reaches 10 Cedis Per Dollar, Ghana’s currency, the Cedi, has crossed ¢10 per dollar mark as at Friday August 19. It now trades at ¢10.01 per dollar.
In a statement, the Bank of Ghana (BoG) urged patience as it announced new measures to address the Cedi’s devaluation. The BoG has determined five major causes of the local currency’s problems.
The US dollar’s strength, investor response to a credit rating downgrade, non-rollover of maturing bonds, the steep increase in crude oil prices and their effect on the oil bill, and the loss of external financing are these.
According to the BoG, measures have been put in place to address these issues, including the “Gold Purchase Program to increase foreign exchange reserves; Special Foreign Exchange Auction for the Bulk Distribution Companies (BDCs) to help with the importation of petroleum products; and Bank of Ghana is entering into a cooperation agreement with the mining companies to give BOG the opportunity to buy gold as it becomes available.
“The Bank of Ghana is supporting the banking sector with foreign currency liquidity to help meet the demand for external payments. The recently approved USD750,000,000 Afriexim loan facility by Parliament, once disbursed, will boost the foreign exchange position of the country and help restore confidence.
“The Cocoa Loan is anticipated in the year’s last quarter. Additionally, this facility will contribute to the provision of more foreign cash to combat the cedi’s depreciation. When the IMF program is finished, we anticipate that it will significantly contribute to regaining investor confidence in the economy and stimulating portfolio flows.
The government of Ghana was also advised to establish a currency board by Johns Hopkins University Professor of Applied Economics Steve Hanke as part of efforts to stabilize the Cedi versus the major trading currencies, particularly the dollar.
He placed Ghana’s currency 15th among a list of nineteen performing currencies.
In a tweet, Prof Hanke said “By my calculations, the Ghanaian Cedi has depreciated 34.17% against the USD since Jan. 2020, which is why Ghana is in 15th place in this week’s Hanke’s #Currency Watchlist.
“To save the cedi,” he said, “Ghana must mothball its central bank and install a #CurrencyBoard.”
Ghana is ranked 10th on this week’s inflation index, he noted. On August 4, I recorded an astonishing 58% annual rate of inflation in Ghana—nearly double the official rate of 30% annually. Ghana must establish a Currency Board and shutter its central bank.
Finance Bill 2022 (the “Bill”) proposes to provide income-tax relief for Covid-19 related medical treatment (subject to such other conditions as may be prescribed by the Central Government)
“The king must make arrangements for the populace’s Yogakshema (welfare) by discarding any laxity and managing the state in accordance with Dharma, as well as collecting taxes in accordance with Dharma.” – Shanti ParvaAdhyaya, Shanti ParvaAdhyaya, Shanti ParvaAdhyaya, Shanti ParvaAdhyaya, Shanti ParvaAdh
The Finance Minister started Part B of her Budget speech with the above verse from the Mahabharata. In keeping with the spirit of the exposition verse, the Finance Bill did not dole-out any popular tax benefits such an overall reduction in marginal tax rates or increase in the limit of standard deduction.
However, it proposed several measures to simplify and rationalise the existing provisions to the personal taxation front which go a long way towards welfare of the public at large.
In line with the press statement of the government dated 25.06.2021, where relief from income-tax was promised in respect of medical treatment of Covid-19 induced illness, the Finance Bill 2022 (the “Bill”) proposes to provide income-tax relief for Covid-19 related medical treatment (subject to such other conditions as may be prescribed by the Central Government) as discussed below.
Regarding medical treatment of any person or his family member for any Covid-19 related illness:
• Any sum paid by employer for expenditure actually incurred by the employee will not be treated as a taxable perquisite; and
• Any payment received by an individual from any person to cover his or his family’s Covid-19 related medical expenses will not be taxed.
Any amounts received by the family of a deceased employee, who passed away because of any illness related to Covid-19, from his employer within 12 months of his passing, will be tax exempt. Any such payments received from any person (other than the employer) will also be tax exempt subject to a cap of Rs 10 lakh.
Further, the Bill also seeks to rationalise provisions of Section 80DD of the Income-tax Act, 1961 (“Act”), in order to provide relief from genuine hardships faced by disabled dependents and their family. Previously, the amount paid by a taxpayer under a scheme to an insurer for maintaining a disabled dependent was tax deductible, subject to the condition that the scheme provided for payment of annuity or lump-sum amount to the disabled dependent upon death of the taxpayer.
The Bill now proposes to permit such deduction even in cases where the scheme provides for payment of sum to the disabled dependent during the lifetime of taxpayer (i.e., upon attaining the age of 60 years) and upon discontinuance of the payment or deposit to such scheme. Additionally, any such lump-sum or annuity received by the disabled dependent during his lifetime will not be taxable in the hands of the taxpayer.
The Finance Bill also proposes to cap the surcharge applicable on transfer of long term assets to 15 per cent which hitherto went up to 25 per cent (in case total income was in excess of Rs 2 crore and up to Rs 5 crore) and 37 per cent (in case total income was in excess of Rs 5 crore).
State governments were allowed the option to raise the National Pension Scheme (NPS) contribution towards their employees from 10 per cent to 14 per cent on their own volition with effect from April 1, 2019. However, the tax deduction in respect of employer’s contribution towards NPS under section 80CCD of the Act was restricted to 10 per cent (and 14 per cent for Central Government employees). This limit is proposed to be raised to 14 per cent retrospectively from April 1, 2020 to ensure that state government employees get full deduction of the enhanced contribution made by their employer.
In the spirit of promoting voluntary compliance and reducing litigation, the Bill proposes to provide taxpayers an opportunity to file an ‘updated tax return’ within 24 months from the end of the relevant assessment year (AY) subject to payment of an ‘additional tax’ and interest, irrespective of whether they have filed an earlier tax return or not.
The additional tax would be computed as 25 per cent or 50 per cent of the applicable amount of tax and interest, depending on whether the updated tax return is filed within 12 months or 24 months from the end of the relevant AY, respectively.
However, the opportunity to file an updated tax return will not be provided to taxpayers in whose cases a search or survey operation has been initiated or notice has been issued to the effect the books of account or documents seized in the case of any other person belong to such taxpayers, or where the tax department has information in respect of Prevention of Money Laundering Act, 2002 or Black Money (Undisclosed Foreign Income and Asset) and Imposition of Tax Act, 2015, etc.
As such, while the Bill failed to create excitement in the vox populi, the intention of the Bill to ensure welfare measures to taxpayers affected due to the pandemic and invoke voluntary compliance to reduce and manage tax assessments in the country are commendable steps. Further, by not reshuffling the existing tax regime the Bill induces certainty which should complement the Government’s overall objective of widening the tax net and ensure self compliance.
(Gouri Puri is Partner and Suyash Sinha is Principal Associate, Shardul Amarchand Mangaldas & Co)
The auto sector in India, which is one of the largest contributors to GDP, is once again hoping for significant and productive reforms in the next Budget.
Since the epidemic hit the economy in 2019, the auto industry has been in an unfortunate situation. Furthermore, the global disruption caused by EVs has yet to be assessed in terms of traditional automobiles.
The Union Budget 2022, which is set to be announced by Finance Minister Nirmala Sitharaman on February 1, 2022 is expected to bring much-required light to the automobile sector.
The auto sector in India is one of the top contributors to GDP, is once again pinning hopes on the upcoming Budget for some strong and fruitful reforms.
Following, the COVID-19 pandemic the auto sector has been grappling with rising material prices, shortage of semiconductors, low sales volumes and thus now needs reforms for a vigorous recovery ahead.
The government has introduced multiple reforms to support the sector in past, but not much has reflected on the manufacturing and sales in the past two years.
Besides, there is the worldwide lack of computer chips that are constraining auto organisations to cut production.
Government focussed reforms like the production incentive scheme (PLI) and for auto & advanced chemistry cells (ACC) PLI scheme has provided an opportunity to make Bharat self-reliant by way of manufacturing products of advanced automotive technology within the country and also help in making the country an export hub for the world market.
Following the COVID-19 pandemic, the auto sector has been grappling with rising material prices, shortage of semiconductors, low sales volumes and thus now needs reforms for a vigorous recovery ahead.
Considering, the government has laid stress on made-in-India products, it is very much predictable that there shall be a plan of the phased increase in the custom duty rates on AAT products and ACC.
Thus, the industry seeks the rationalizing of the rates at 18 per cent, which shall act as a breather to this long pending issue and shall set a positive upward growth tick within the industry.
Currently, in this pandemic era, the chances of the government accepting such a proposition appear to be less as it needs revenue to fight the problems caused by the pandemic.
However, even if an announcement is made in this budget to express intent to resolve this conflict in classification, there may be a positive impact on the industry.
Another important reform that the auto industry is looking forward to, is an increase in the basis of the RoDTEP rate which is a refund granted against exports from India.
The industry is of the view that the current RoDTEP rates notified for the auto sector are not enough to cover the non-creditable taxes which are getting built as a cost in the product being exported outside the country.
The chances of the industry getting increased rates appear to be low in the upcoming budget.
In the year 2022, we expect the auto industry to see an accelerated transition to the EV sector which is expected to increase year on year, as India moves towards achieving its target of net-zero carbon emission and greener fuels.
Considering, the government has also shifted focus on the EV sector, Budget 2022 provides an opportunity to bring out changing reforms to boost to EV sector. Currently, an EV is not the first choice for any consumer primarily because of the higher costs associated with it and the lack of infrastructural arrangements.
In nutshell, unlike Budget 2021, this time the government may use the opportunity to outline reforms focusing on the long-term strategy for the automobile sector which surely can lead to a significant increase in the demand for vehicles in all segments.
This would enable the auto sector in contributing to the economy especially during these turbulent times of pandemics.
The Central Bank of Nigeria (CBN) has urged Nigerians to accept the country’s digital currency, the e-naira.
Osita Nwanisobi, Director of CBN’s Corporate Communications Department, made the announcement on Thursday at the CBN special day at the current Lagos International Trade Fair.
“The e-Naira is expected to deepen financial inclusion by bringing more people into the financial space, support a resilient payment ecosystem, reduce the cost of processing cash, enable direct and transparent welfare intervention to citizens, increase transparency in revenue and tax collections, facilitate diaspora remittances, reduce the cost of financial transactions, and improve the efficiency of payments,” he said, highlighting the benefits of the digital currency.
Noting that there have been encouraging responses to the launch of the e-Naira, Osita, said, “Today, customers who download the eNaira Speed Wallet App will be able to create their wallet; fund their eNaira wallet from their bank account; transfer eNaira from their wallet to another wallet and make payment for purchases at registered merchant locations.
“I, therefore, appeal to Nigerians to embrace the eNaira just like our physical Naira – our pride.”
Osita continued: “Furthermore, the CBN has provided policy and financing support for businesses especially the MSMEs through our development finance initiatives because we believe that the continued provision of access to finance to various sectors of the economy will promote inclusive growth and sustainable development.
“For the records, these initiatives include the Commercial Agriculture Credit Scheme (CACS); the MSME Development Fund; the Anchor Borrowers’ Programme (ABP); and the Youth Entrepreneurship Development Programme (YEDP).”
We also established the Agri-business/Small and Medium Enterprises Investment Scheme (AGSMEIS) and the Creative Industry Financing Initiative (CIFI) in collaboration with the Bankers’ Committee to provide access to finance for youth in the fashion, music, information technology, and film production verticals.
“While collaborating with the Federal Ministry of Youth and Sports Development to fund the Nigeria Youth Investment Fund (NYIF), we also recently unveiled the Tertiary Institutions Entrepreneurship Scheme (TIES), aimed at harnessing the potential of graduate entrepreneurs from Nigerian polytechnics and universities.
“As part of our response to the disruptions triggered by the Covid-19 pandemic, the CBN introduced a bouquet of interventions such as the Targeted Credit Facility (TCF), as a stimulus package to support households and MSMEs affected by the pandemic
At the prestigious Banks and Other Financial Institutions’ (BAFI) Awards 2021 held in Lagos over the weekend, Ecobank Nigeria was the center of attention.
Ecobank Nigeria won ‘Market Confidence and Capital Structure Transaction of the Year’ for its unsecured $300 million bonds, a fixed-rate five-year US dollar-denominated bond launched early this year, and ‘Female Economic Advancement Bank of the Year’ for its sustained support for female entrepreneurs and the development of savings and loans products specifically aimed at women through its Ellevate programme at the hotly contested awards.
The BAFI Awards, backed by the BusinessDay Research and Intelligence Unit (BRIU), noted that the impressive strength and depth of the book on the Ecobank’s $300 million bond transaction signalled solid global investor confidence in the financial institution at a time when Nigeria was racked by a perfect storm: a COVID-19 pandemic, economic recession in the fourth quarter, and a year of falling oil prices.
It reiterated that further proof of market confidence and demand was seen when the bonds were listed on the London Stock Exchange.
“The success also stamped market faith in Ecobank Nigeria’s prospects, as it was the second major bond sale by Ecobank Nigeria in the space of two years; the first being an oversubscribed N50 billion Tier-2 issuance in December 2020,” it stated.
On the Ecobank Ellevate proposition, BRIU said: “Ellevateprogramme, which is designed for businesses owned by women, managed by women, have a high percentage of female board members or employees and companies manufacturing products for women, received special attention of the BAFI Awards Review Panel for its comprehensiveness.
A fully 360º solution, it cuts across Cash Management & Collections, Liability & Loans, and Support & Development.
“Being an ‘inside-outside award that adheres to the ‘charity begins at home principle’, Ecobank as the winner of the Female Economic Advancement Bank of the Year Award has demonstrated a commitment to creating a work environment that allows its female employees to thrive to their full potential within the bank.
“Ecobank was chosen based on the diversity and scope of Ellevate, which is specifically developed for women, being a strong SME banking proposition since many women-owned and women-led businesses fall into this category; a clear, articulated vision to become a ‘Bank of Choice’ for women through training of product development specialists, marketers and customer service agents on the needs of women; and the service to female customers beyond providing loans, as advice and support are critical to business success anywhere in the world.”
Speaking on the awards, the Managing Director, Ecobank Nigeria, Patrick Akinwuntan, said: “The strong demand for our bond shows the international appetite for the Ecobank franchise in Nigeria, its unique positioning for facilitating pan-Africa trade and the attractive opportunity for the many investors seeking to back world–class Nigerian corporates.”
He also noted that “with the Elevate programme, Ecobank aims to empower 40 million women, being a gender-based proposition designed to empower women-owned and managed businesses in Nigeria, as well as in the 33 African countries and beyond where Ecobank has presence”.
Earlier, the Publisher, BusinessDay, Frank Aigbogun, said the BAFI Awards is backed by BRIU, noting that nominations for the BAFI Awards are the culmination of a rigorous review process.
He said BRIU and an independent panel of judges evaluate more than 250 institutions and benchmark them against their global peers using several indices in a thorough evaluation process and nominees are assessed for their vision, execution, and market-leading propositions.
He added that they also considered factors like corporate values, integrity, workplace culture, gender balance and other human issues.
The BAFI award categories cut across banking, insurance, capital markets, investment, pension funds, trustees, registrars, stockbroking and private equity.
HDFC Bank, a private lender, announced on Tuesday that its Festive Treats 3.0 program had partnered with over 10,000 retailers, a nearly tenfold increase from 2020. Customers can choose from 10,000 deals on credit cards, loans, and low-interest loans.
“As India unlocks, we are also trying to spread a little cheer in the lives of people and help the overall national economic good,” said Arvind Kapil, Group Head – Retail Assets, HDFC Bank. “This is reflected in our range of offers spanning Personal loans, Car loans, two-wheeler loans as well as the Business Loan & working capital loans for really small businesses.”
Some of the key national partners include Apple, Amazon, Shoppers Stop, LG, Samsung, Sony, Titan, Central, Ajio, Reliance Digital, Reliance Trends, Lifestyle among others.
The bank will use its ATM, branch network, partnerships with stores & websites and digital media campaigns to reach its customers.
“Our range of offers on credit cards is not just about coming back with a bang. It is about spurring India’s consumption story,” said Parag Rao, Group Head – Payments, Consumer Finance, Digital Banking, and IT, HDFC Bank. “We are encouraged to do this since about one-third of spends on credit, debit and prepaid cards in India happens on an HDFC Bank card.”
The bank said it has a cash back offer of Rs Rs 6,000 on iPhone 13. It is also offering upto 22.5% CashBack & No Cost EMI on electronics & consumer goods like washing machines and refrigerators.
The bank will offer personal loans starting at 10.25% with instant disbursal in customers account. Its car loans will start at 7.50% with Zero Foreclosure charges.
It is also giving options of funding of up to 100% on two-wheeler loans and 90% funding on tractor loans with zero processing fee.
“This has been one of the most challenging periods for people due to the pandemic. Festive Treats 3.0 is not just about spending for oneself but also about helping others, Festive purchases will benefit many others employed in small businesses and create a chain of recovery across the spectrum,” said Ravi Santhanam, CMO, Head -Corporate Communications, Liability Products & Managed Programs, HDFC Bank.
A personal loan is money you borrow for just about any purpose, including debt consolidation, an unexpected medical bill, a new appliance, a vacation, or even a student loan. You pay the money back—including interest—in monthly installments over time, usually two to five years, Most personal loans are unsecured, meaning they are not backed by collateral.
The interest you pay is expressed as an annual percentage rate (APR). The average APR on a personal loan is 9.41% as of June 2019, but it can range from 6% to 36% depending on your creditworthiness, including an examination of your income, debts, and credit score.12
KEY TAKEAWAYS
A personal loan can be used for almost any reason, from debt consolidation to unexpected doctor bills to taking a vacation.
Most personal loans do not require collateral, which makes them unsecured loans.
Personal loans must be paid back over a set term, usually two to five years.
The best personal loans will depend a lot on your creditworthiness and why you need the loan.
How to Qualify for a Personal Loan
There are many steps to take to qualify for a personal loan, with the first being to make sure that it’s right for you. For example, if you want to borrow money to remodel your house or buy a car, a home equity loan or an auto loan may come with a lower interest rate. Unlike unsecured personal loans based solely on your creditworthiness, these loans are secured by the home you want to fix up or the car you want to buy.
Although paying for a family vacation or consolidating debt fits into the personal loan category, you may also want to check into a 0% introductory APR credit card. If you go that route, however, be sure that you can pay off the balance before the 0% rate expires.
9.41%
The average annual percentage rate on a personal loan as of June 2019
Decide How Much to Borrow
Remember that when you borrow money, you don’t just pay back the original loan. Except for that 0% card, paid off on time, you also pay interest or “rent” on the money you borrow. There’s no reason to pay interest on the money you don’t need, so only borrow what is necessary. On the other hand, if you borrow less than you need, you may be forced to turn to more expensive loan sources at the last minute.
Finally, make sure you can afford the payments on the amount you do borrow. There’s nothing worse than overextending yourself financially if the best thing would have been to wait a while until your finances improve.
Check Your Credit
As personal loans rely heavily on your creditworthiness, check your credit scores and obtain updated credit reports from each of the three major credit reporting agencies—Equifax, Experian, and TransUnion—before you apply. None of these actions, referred to as soft inquiries, will impact your creditworthiness or credit score. That only happens when you apply for a loan and the lender makes what’s known as a hard inquiry.
You can obtain a free credit report from each of the major reporting agencies once per year by visiting AnnualCreditReport.com. Many credit card and loan companies provide a free monthly credit score from one or more of the major credit reporting agencies. Services such as Credit Karma offer free credit scores, credit reports, and other financial services. Some, like Credit Karma, are actually free. Others offer a free trial then charge an ongoing fee. You can also pay for your credit score from credit reporting agencies or from other online vendors.3
The higher your credit score, the more likely you are to be approved for a loan at a better interest rate.
LendingTree reported the following average best personal loan APRs and loan amounts based on credit score for April 2021.4
Offers vary by lender, but the information above may provide guidance about what to expect when you apply for a personal loan. Additionally, a personal loan calculator can make it easier to determine how high of a monthly payment you might end up with based on your credit score.
Know Your Rights Under Regulation Z
In 1968 the Federal Reserve Board (FRB) implemented Regulation Z which, in turn, created the Truth in Lending Act (TILA), designed to protect consumers when making financial transactions. Personal loans are part of that protection. This regulation is now under the auspices of the Consumer Financial Protection Bureau (CFPB).
Subpart C–Sections 1026.17 and 1026.18 of the TILA require lenders to disclose the APR, finance charge, amount financed, and total of payments when it comes to closed-end personal loans. Other required disclosures include the number of payments, monthly payment amount, late fees, and whether there is a penalty for paying the loan off early.56
Where to Obtain a Personal Loan
Personal loan sources are divided between two main categories: those with a banking license or charter and those without. The main distinction between the two categories involves regulation.
Banks and Credit Unions
Institutions with a banking license or charter are governed by the Federal Reserve, Federal Deposit Insurance Corporation (FDIC), Office of the Comptroller of the Currency (OCC), and the National Credit Union Administration (NCUA).7
Local banks and credit unions are the first places many people think of when contemplating a personal loan. If you apply there, you will likely meet face to face with a loan officer, the experience will be personalized, and the officer can guide you through the application process smoothly. Compared to other options, banks tend to have higher loan qualification standards. If you are already a customer, the bank may cut you a break in that area, though.
The credit union qualification process tends to be less rigid than that of banks, and interest rates there are typically lower than at banks. You must, however, be a member in order to do business there. Neither banks nor credit unions typically charge loan origination fees, which is a plus.
Non-Banking Financial Institutions (NBFIs)
Sources without a banking license are known as non-banking financial institutions (NBFIs) or non-banking financial companies (NBFCs). The main difference in terms of services is that NBFIs cannot accept deposits. NBFIs fall under the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act and are under the supervision of the CFPB.89
NBFIs include online and brick-and-mortar finance companies, insurance companies, peer-to-peer (P2P) lenders, payday lenders, and other non-bank entities. Finance companies typically charge higher interest rates than banks or credit unions, but they may approve you for a loan when a bank won’t. P2P lenders may offer low-interest rates if your credit is good, but much worse rates than banks if you are considered a credit risk. Payday loans are notoriously bad loans, charging high-interest rates and often hidden fees.
Check Your Eligibility
Visit lender websites or make phone calls to determine if your financial profile makes you eligible for a loan from that lender. Find out if there is a minimum required credit score and whether there is an income threshold. Determine if there’s a required minimum length of credit history—three years or more is common—and what is considered an acceptable debt-to-income ratio.
Compare Personal Loan Rates With Our Partners at Fiona.com
Get Prequalified
Once you’ve eliminated loans for which you are ineligible, turn to lenders most likely to give you a loan. Many lenders offer to prequalify or preapprove you with a soft inquiry. Prequalification or preapproval does not guarantee you will get the loan—only that you fit the general financial profile of people to whom the lender has lent money in the past.
Getting prequalified typically means filling out a short form online in which you provide your name, address, income, and the amount you want to borrow. The lender will conduct the soft credit inquiry mentioned above and notify you—sometimes within seconds, sometimes a couple of days later—that you have or have not prequalified for a loan.
Check Out the Details
Now that you know you are prequalified, it’s time to prequalify the lender. Go through information and disclosures in your preapproval letter and revisit the website to look for the following:
Expected Loan Amount, APR, Monthly Payment, and Loan Term. It may or may not be exact, but it will give you something with which to compare other preapproved loans.
Fees and Penalties. Will this loan have an origination fee? If so, how much? What are the penalties or fees for late or missed payments? Are there any other charges?
Type of Interest. Is the interest rate fixed or variable? Do I have a choice, and, if so, what’s the difference in rates?
Unsecured or Secured. Will this be an unsecured or secured loan? For a secured loan, what is required collateral?
Automatic Withdrawal. Are automatic withdrawals of monthly payments mandatory or optional? If optional, will I get a lower interest rate if I agree to automatic withdrawals?
Arbitration. In the event of a conflict, is arbitration mandatory, or can I take the lender to court?
Prepayment Penalty. If I pay my loan off early, will I pay a penalty?
Fine Print. There’s always fine print, even in preapproval letters. Look for anything not answered above or anything you hadn’t thought of.
Apply for the Loan
Once you’ve narrowed the field, it’s time to apply for a loan. If you plan to apply with more than one lender, try to bunch your applications together within a 14-to-30-day period. This is known as “rate shopping,” and multiple inquiries will be treated as one, having a smaller impact on your credit score.
Your preapproval letter should tell you what additional documentation is required for an actual application. Gather those documents up first. You will likely be required to provide proof of income (pay stubs, W2 forms), housing costs, debt, an official ID, and Social Security number (if not provided for the preapproval). Submit your application and documentation and await the results.
Close the Loan
Approval and funding times vary by lender, but you can expect something close to the following.
Once you are approved—ideally, for more than one loan—pick the one you like best, sign the papers, obtain funding. Then, of course, get ready for the next part: paying back the loan.
What Are the Different Types of Personal Loans?
The different types of personal loans are:
Debt-consolidation loan: rolls multiple debts into one new loan
Co-signer loan: a loan you need a co-signer to qualify for
Secured and unsecured loans (unsecured are more common)
Fixed and variable rate loans (fixed are more common)
Where Can You Find a Personal Loan?
You can find a personal loan in the following places:
Your bank or credit union
A peer to peer lending site
An online loan provider
A referral from a friend or family member
A private loan from an investor
Can You Get Pre-Qualified for a Personal Loan?
Yes, you can usually get pre-qualified for a personal loan within a few minutes online. You fill out some personal information such as how big of a loan you need, your income, address, and other considerations. You can see which loans you are likely to qualify for and then compare them for the best rates and terms. Keep in mind that a pre-qualification means that you’re likely to qualify for the loan, but it is not a guarantee.
Are Personal Loans Secured?
Personal loans are typically not secured. This means that you don’t need collateral such as your house or car to secure the loan. Instead, you receive the loan based on your financial history, including your Fico score, your income, and any other lender requirements you must meet.
The boss of the Government-owned bank that helped funnel billions of pounds worth of loans to British companies said it went through a “gigantic shift” during the pandemic year.
Catherine Lewis La Torre told the PA news agency that the British Business Bank which she leads, had an “important role” in the economic response to Covid-19.
Around £80 billion of emergency government-backed loans were paid out to UK businesses during the pandemic, with systems being put in place at speed when the country first started locking down.
Nealy 1.6 million businesses took Bounce Back Loans – small loans of up to £50,000 that were provided by high street lenders, but administered by the BBB.
The bank also looked after the Coronavirus Business Interruption Loans (CBILS), which paid out to 109,877 businesses and the Coronavirus Large Business Interruption Loans (CLBILS).
It turned the BBB from an institution which was backing less than £10 billion of finance to UK companies, to a vital backbone of the economy, supporting 1.8 million businesses with over £88 billion of finance.
“I hope what comes through in the annual report is just what an incredible year it was. I think that’s best reflected in the numbers,” Ms La Torre said.
How much this actually helped the economy, and how businesses would have fared without the support will be impossible to say, but the BBB said the impact on many businesses was likely huge.
“While it is difficult to say exactly what would have happened in the absence of these schemes, it is reasonable to assume that without their support many more businesses may not have survived through the pandemic,” it said.
Alongside the Covid support schemes, the bank continues to help small businesses get loans and investments to grow, supporting £8.5 billion of finance to 95,000 companies.
Small companies now have up to a decade to pay back their Bounce Back Loan.
“We need to be very clear-sighted about how we manage this portfolio of Covid-era loans into the future. And even though these were all introduced in pace in response to the crisis the run-off of these loans – we have to have a 10 year plan for how we do that,” she said.
However the bank expects to “be over the hump” before the ten years is over.
She said the bank is planning for this going into the future, investing in its data analytics among other things.
BRUSSELS, Belgium (Reuters) – The impact of relying on just a few big businesses, as demonstrated by Facebook’s six-hour downtime the day before, highlights the need for additional competitors, EU antitrust chief Margrethe Vestager said on Tuesday.
The outage, which was the largest ever monitored by web monitoring site Downdetector, stopped the company’s 3.5 billion customers from accessing its social media and messaging services such as WhatsApp, Instagram, and Messenger.
Droves of users switched to competing apps such as Twitter and TikTok on Monday. Several Facebook employees who declined to be named told Reuters that they believed that the outage was caused by an internal mistake in how internet traffic is routed to its systems.
The incident showed the need for more competition, Vestager said on Twitter.
“We need alternatives and choices in the tech market, and must not rely on a few big players, whoever they are, that’s the aim of (the) DMA,” she tweeted.
Vestager proposed the Digital Markets Act (DMA) last year, which lays down a list of dos and don’ts for Amazon, Apple, Facebook, and Google, essentially forcing them to adjust their primary business model to allow more competition.
EU lawmakers and EU countries are now debating their own proposals and will need to reconcile the three drafts before the tech rules come into force.
(Reporting by Foo Yun Chee, editing by Louise Heavens)
ZebPay launches electronic OTC desk for HNIs and institutional investors.
NEW DELHI: ZebPay, India’s first worldwide electronic over-the-counter (OTC) desk, is aimed at big volume traders and institutional investors around the world.
Targeted at HNIs, trading firms and corporates, the ZebPay Electronic OTC desk offers cost-effective one-click execution of large crypto trade orders instantly at tight spreads with zero fees and minimal slippage. Access is available via API integration or through an easy-to-use trading interface that enables automated trading facilities for all users.
“With ZebPay OTC Desk, we are addressing the growing institutional interest in crypto globally and in India. Like other ZebPay products, the OTC Desk also provides a simplified and optimised trading experience coupled with personalised assistance, but specifically for larger volume traders. This will further encourage adoption of crypto in the country and help create a mark for India as a major player in this emerging space,” said Avinash Shekhar, Co-CEO, ZebPay.
With the OTC Desk, ZebPay is addressing the liquidity crunch in crypto assets as it gives access to 24/7 deep liquidity to a range of cryptocurrencies and best-in-class price execution across multiple trade pairs, the company said.
The Electronic OTC desk also offers sophisticated APIs for automated trading which suits the needs of trading firms, quant funds, institutions, brokers, corporates, and algorithmic traders. It currently supports multiple fiat currencies and stable coins for global clients such as US Dollar (USD), British Pound (GBP), Euro (EUR), Singapore Dollar (SGD), Dirham (AED), Australian Dollar (AUD), Tether (USDT), USD Coin (USDC) and DAI.
It also supports all clients with access to a credit line for 24-hours post-trade settlement with minimum collateral needs. All users, including HNIs, trading firms, corporates, and institutions, will be provided with services such as in-depth research, analysis, and 24/7 white-glove service, the firms said in a statement.
“ZebPay wants to give advise regarding the ZebPay launches electronic OTC desk, help, and convenience to HNIs and institutional investors for trading in crypto assets with the introduction of India’s first crypto OTC Desk. According to Nirmal Ranga, Chief Revenue Officer, “the product would alleviate the problem of finding deep liquidity and enable the quick execution of huge crypto trade orders.”
