“Cost of unsecured loans at nine-year high (The Scotsman: Business)” plus 2 more |
- Cost of unsecured loans at nine-year high (The Scotsman: Business)
- Saudi gov't loans to fund railway linking holy cities (Arabian Business)
- Federal SBA loans available to victims of recent flooding (L'Observateur)
| Cost of unsecured loans at nine-year high (The Scotsman: Business) Posted: 01 Feb 2010 04:11 PM PST The average rate on a £5,000 loan over three years is now 12.4 per cent, up from 10.8 per cent two years ago and compared with the current base rate of 0.5 per cent. The best rate on the market is 8.9 per cent, according to Moneyfacts – the highest since January 2001, when the base rate was 6 per cent. In January 2007, before the credit crunch, personal loans were available at rates of 5.8 per cent, just 0.55 points above base rate at the time. Michelle Slade, spokeswoman for Moneyfacts.co.uk, commented: "In such a risk-adverse market, lenders are only offering loans to the most creditworthy applicants and then at a premium. The post-Christmas loan sales that we see each January did not materialise, a further indication that lenders do not want to encourage unsecured lending." Lenders have hiked loan rates in response to a rise in unemployment that has increased the risk of borrowers missing repayments. Slade added: "Unemployment remains high and when people are struggling, unsecured lending is one of the first debts they stop repaying." The best rate is currently offered by Alliance & Leicester, at 8.9 per cent. But few applicants are able to secure a competitive loan rate as lenders cherrypick the lowest-risk borrowers, according to Slade, with three-quarters of lenders serving only existing customers. "The majority of lenders advertise typical rates, so borrowers shouldn't be surprised if they have to pay a higher personal loan rate than that shown," she said. "However, borrowers need to be wary of making multiple applications as this will reduce their chances of being accepted." Andrew Hagger, head of communications at price comparison website Moneynet, claimed lenders were using personal loans to recoup revenue lost when restrictions were placed on the sale of payment protection insurance last year. "Not only is the risk of defaults higher in the current economic climate, the highly profitable payment protection insurance cash cow is no longer there to subsidise lower loan rates," said Hagger. "With banks and building societies still adopting a far more cautious stance even when it comes to mortgage lending, even with your property as collateral, it's no surprise that the appetite for unsecured lending has pretty much dried up." The figures were published as the Bank of England revealed that the amount borrowed in December through loans, credit cards and overdrafts rose by £52 million to £226.4 billion, the first month-on-month increase since June last year. Five Filters featured article: Chilcot Inquiry. Available tools: PDF Newspaper, Full Text RSS, Term Extraction. This posting includes an audio/video/photo media file: Download Now |
| Saudi gov't loans to fund railway linking holy cities (Arabian Business) Posted: 01 Feb 2010 11:12 PM PST Saudi Arabia's Public Investment Fund will provide interest-free loans for work on a rail line linking Islam's two holiest cities as the government expands infrastructure spending. Saudi Arabia wants to speed up the construction of the 450-kilometre (280-mile) rail line linking Jeddah's international airport with Mecca and Medina, the state-owned Saudi Press Agency said late yesterday, citing Information Minister Abdulaziz Khoja. The government-run fund will use revenue to finance the loans, the news service said. Saudi Arabia, the world's largest oil exporter, is spending $400bn on roads, airports and energy projects over a five- year period starting from 2009 to stimulate the economy. The country is allocating almost $70bn to investments this year, a 16 percent increase on 2009, and will spend $3.2bn to add 6,400 kilometres (4,000 miles) to the road network. Saudi Arabia in March signed a SR6.8bn ($1.8bn) contract with a group of companies led by Al-Rajhi Group to help build the line that will ferry Muslim pilgrims between Mecca and Medina. In January, Basingstoke, England-based Scott Wilson Group Plc won an $89.8m contract for the railway's management. Contracts for the project's second phase will be awarded by the end of this month, Arab News reported, citing Abdul Aziz Al-Hoqail, president of the Saudi Railway Organization. This includes the construction of railway lines, signal and communication systems, the newspaper said. Companies that win contracts for the line will be offered discounted energy supplies, the newspaper said. READERS' COMMENTSMORE FROM ARABIANBUSINESS.COMFive Filters featured article: Chilcot Inquiry. Available tools: PDF Newspaper, Full Text RSS, Term Extraction. |
| Federal SBA loans available to victims of recent flooding (L'Observateur) Posted: 01 Feb 2010 04:13 PM PST Comment posters are responsible for the opinions they express and the accuracy of the information they provide. We urge comment writers to treat this as a public forum where manners matter. We encourage a collegial, non-insulting tone. All readers comments must be approved by our staff before posting to the Web site. Be aware, in accordance with the Communications Decency Act and provisions upheld in judicial appeal, that you are responsible for comments posted on this Web site. The L'Observateur is not liable for messages from third parties.
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Five Filters featured article: Chilcot Inquiry. Available tools: PDF Newspaper, Full Text RSS, Term Extraction. |
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