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Tata Motors Finance to sell securitised loans of Rs 500 crore

Tata Motors Finance to sell securitised loans of Rs 500 crore

Finance
Mumbai: Tata Motors Finance, which funds buyers of commercial vehicles sold under the Tata badge, plans to sell securities backed by loans worth Rs 500 crore ahead of the end of the fiscal year to free up cash to lend more in FY19. The non-banking finance arm of Tata Motors will sell the securities in private transactions with banks for which the exposure lowers their priority-sector lending commitments. Fitch Ratings has assigned a 'BBB-(EXP)sf' expected rating to the issue. Securitisation is a way of pooling loan receivables and selling their related cash flows to third-party investors as securities. This frees up capital for the originator of loans as funds received as proceeds could be lent to more customers and help expand the business. Tata Motors Finance competes with larger compani...
China's new loans in Jan surge to record 2.9 trillion yuan, blow past forecasts

China's new loans in Jan surge to record 2.9 trillion yuan, blow past forecasts

Finance
China's banks extended a record 2.9 trillion yuan ($ 458.3 billion) in new yuan loans in January, blowing past expectations and nearly five times the previous month as policymakers aim to sustain solid economic growth while reining in debt risks.While Chinese banks tend to front-load loans early in the year to get higher-quality customers and win market share, the lofty figure was even higher than the most bullish forecast by economists in a Reuters poll.Net new loans surpassed the previous record of 2.51 trillion yuan in January 2016, which is likely to support growth not only in China but may underpin liquidity globally as major Western central banks begin to withdraw stimulus.Analysts polled by Reuters had predicted new yuan loans of 2 trillion yuan, up sharply from December's 584.4 bil...
Barclays Bank charged over Qatar loans

Barclays Bank charged over Qatar loans

Business
The Serious Fraud Office (SFO) has charged Barclays Bank PLC with "unlawful financial assistance" related to billions of pounds raised from Qatar in 2008.The same charges were bought against Barclays PLC in June last year.The move to charge Barclays Bank as well is significant because it holds the banking licence that allows it to operate in different countries.So, if Barclays was found guilty, it could lose that crucial licence.In 2008, to avoid a government bailout, Barclays took a £12bn loan from Qatar Holdings, which is owned by the state of Qatar.Under that deal Barclays loaned £2.3bn back to Qatar Holdings.The SFO alleges that loan was used either directly, or indirectly, to buy shares in Barclays, which the SFO says is "unlawful financial assistance".In response, Barclays said: "Bar
RBI to link bank's base rate to MCLR from Apr 1 for loans, borrowers on base rate may benefit

RBI to link bank's base rate to MCLR from Apr 1 for loans, borrowers on base rate may benefit

Finance
The Reserve Bank will link the base rate for loans given by banks to the MCLR starting April 1, 2018 i.e. from the new financial year. The Marginal Cost of Funds based Lending Rates (MCLR) system was introduced on April 1, 2016 to tackle the problems of the Base Rate regime. With the introduction of the MCLR system, it was expected that the existing Base Rate linked loans and other credit exposures would also migrate to MCLR system. However, this has not happened. "It is observed, however, that a large proportion of bank loans continue to be linked to the Base Rate despite the Reserve Bank highlighting this concern in earlier monetary policy statements. Since MCLR is more sensitive to policy rate signals, it has been decided to harmonize the methodology of determining benchmark rates...
New employee perk: $100 a month for your student loans

New employee perk: $100 a month for your student loans

Finance
How to talk to your kid about paying for collegeElaine Florentino landed a job as an accountant as soon as she graduated college, but she still worries about paying off her student debt. Luckily her employer, PwC, is offering some help. The auditing firm was one of the first companies to give employees some extra cash -- on top of their salary -- that goes directly toward their student loan bills. PwC launched its Student Loan Paydown benefit in January 2016, just a few months after Florentino started her job. Eligible workers receive $ 100 a month for up to six years. She borrowed about $ 57,000 to get her Bachelor's and Master's degrees at Bentley University, a private school in Massachusetts. About 20% of her take-home pay goes to her student loans. "When I got my salary, I thought i...