Colorado voters, by the widest positive margin of any state ballot measure this year, agreed to cap the costs on payday loans at 36 percent a year, a rate some lenders argue is too low to stay in business but which backers argued was necessary. “This lending product is so predatory,” said Corrine Fowler, who ran the successful campaign behind Proposition 111. “Financially, people are not better off when taking the loans. It’s just immoral, unjust and wrong.” Costs, including fees and interest for those short-term loans of $500 or less, averaged around 129 percent and could reach above 200 percent. And that was after major reforms in 2010 took them down from more than 500 percent of the original amount. Colorado consumers are expected to save $50 million a year in borrowing costs. But will they be able to get a short-term loan once the measure takes effect Feb. 1? A Federal Reserve survey in May found that 40 percent of adults said they … [Read more...] about Alternatives expected to sprout up now that Colorado payday lenders are capped
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Share Tweet Plus One Pin It Email Print By: Mukesh Chand August 14, 2018 11:13 am Change Font Size The financial sector of the country is a major contributor towards the growth of the country. The sector comprises public sector banks (PSUs), commercial banks, insurance companies, Non-Banking Financial Companies (NBFCs), mutual funds, pension funds etc. The 17th Financial Stability Report (FSR)[i] released by RBI in June has highlighted that the stress in the banking sector continues as gross non-performing advances (GNPA) ratio rises further. Profitability of SCB[ii]s declined, partly reflecting increased provisioning. Credit growth of SCBs picked up during 2017-18 notwithstanding sluggish deposit growth. Macro-stress tests indicate that under the baseline scenario of current macroeconomic outlook, SCBs’ GNPA ratio may rise from 11.6 percent in March 2018 to 12.2 percent by March 2019. The system-level capital to risk-weighted assets ratio (CRAR) may come … [Read more...] about Towards Loan Market Structure: More Liquidity & Relief From Stressed Assets For Banks?
LOVE Island ad break boob job firm MYA has been slammed for offering loans to customers with poor credit ratings. The plastic surgery firm runs adverts during the reality dating show on the ITV Hub, offering loans with a 9.9 per cent interest rate through third-party lenders for surgery costing up to £10,000. Potential patients who have a history of bad debt or missed payments are told that a parent or partner could take out a loan on their behalf. But campaigners have blasted the organisation for targeting financially vulnerable viewers. Isabella Goldie, of the Mental Health Foundation, told Mirror Online: "To now see that these adverts are offering to help people who are struggling to manage financially and in debt to buy body changing surgery creates the impression that achieving an artificial ideal of beauty is more important than financial security.” MYA suggests a number of payment options for people seeking breast enlargements, nose jobs and tummy tucks. Its website … [Read more...] about Love Island ad break boob job firm MYA slammed for offering loans to customers with poor credit ratings
Share Tweet Plus One Pin It Email Print By: Mukesh Chand May 22, 2018 9:56 am Change Font Size India’s bad account market is turning good. Investors are upbeat and banks are also looking for alliances to start funds. Huge amount of money from global and domestic capital market is being pumped-in in stressed assets market in India. Big assets undergoing Corporate Insolvency Restructuring Process (CIRP) under Insolvency and Bankruptcy Code, 2016 (IBC) are hot targets. Funds are hoping for big in next round of big tickets cases which might end up before National Company Law Tribunal (NCLT) under IBC especially power, engineering, and hospitality sector. Fund Tie-ups: BlackRock Inc, which manages assets worth more than $6.3 trillion is reported to be entering Indian stress assets market and targeting to raise $2.5 billion. BlackRock will thus be joining the big players such as Blackstone, KKR, Apollo Global, Baring and so on. Blackstone has already acquired … [Read more...] about Bad Is Turning Good- From SICA To IBC-The Journey Of Bad Loans In India
It's a good news-bad news situation for small businesses when interest rates rise. The Federal Reserve says that the economy is doing well, so it has raised its key rates recently and is expected to do so again in the near future. The strong economy is great for most businesses, but higher rates will likely increase what it costs for them to borrow. So what's a small business owner to do? Understand how the system operates and consider the ways they can manage. Here are a few basics to help: THE GOOD NEWS Small businesses thrive when the economy is strong. Right now, the economy is doing quite well, which is why the Fed is comfortable raising rates. (One Fed official even referred to it as a 'Goldilocks' economy for being just right.) The Federal Reserve doesn't directly control the rates a business might pay on a credit card, line of credit or loan directly, but these rates tend to move in the same direction as the Fed's benchmark rate. When the Fed raises its benchmark rate, it takes … [Read more...] about How small businesses can navigate rising interest rates