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Tag: loans

Wonga payday firm stops offering new loans

Wonga payday firm stops offering new loans

Business
Payday lender Wonga has said it is no longer accepting new loan applications as it teeters on the brink of collapse.The company said in a statement on its website that it was continuing to "assess its options" and existing customers could still use their services to manage their loans.It follows a surge in compensation claims against the firm amid a government clampdown on payday lenders.Reports say the firm has lined up Grant Thornton to act as administrators.Wonga, the UK's biggest payday lender, has faced criticism for its high-cost, short-term loans, seen as targeting the vulnerable. Wonga: Where have all the borrowers gone? What's gone wrong with Wonga? The company's statement said: 'While it continues to assess its options...
HDFC hikes interest rates on home loans 20 basis points

HDFC hikes interest rates on home loans 20 basis points

Finance
MUMBAI: Mortgage lender HDFC on Thursday hiked interest rates on home loans by 20 basis points, a day after RBI raised the benchmark repo rate by 25 bps to 6.5%. As per the new rates, women borrowers can avail a home loan of upto Rs 30 lakh at 8.7% while other customers will be charged a rate of 8.75%. New rates are effective from 1st August. For loans above Rs 30 lakhs women borrowers will be charged at 8.80% while other borrowers will be charged a rate of 8.85%. On Wednesday, at least three banks - Union Bank of India, Kotak Mahindra Bank and Karnataka bank – increased their marginal cost of lending rates (MCLR) by 5-10 basis points. The largest mortgage loan providers such as State Bank of India (SBI), ICICI Bank and Punjab National Bank have kept their MCLR rates unchanged. On J...
Delinquency in retail loans are minimal compared to big-ticket loans: Study

Delinquency in retail loans are minimal compared to big-ticket loans: Study

Finance
Retail loans are perceived to be safe as delinquency and bad loans are minimal compared to corporate loans. A study by Transunion Cibil shows that delinquency in retail loans have ranged between 0.52 per cent and 2.78 per cent. But the risks on big-ticket loans, particularly auto loans and loan against property, are higher compared to personal loans or consumer durable loans, which is relatively smaller-sized loans. Let's block ads! (Why?) Personal Finance News-Wealth-The Economic Times
Why you should start paying off your student loans as soon as possible, even before graduation

Why you should start paying off your student loans as soon as possible, even before graduation

Finance
When Ruth B., now 26, graduated from college in May 2014, she already had a few months of student loan payments under her belt. Ruth, who asked that her last name not be used, had taken out federal loans to help cover her tuition and living expenses every year. But in her senior year her family finances changed when her younger brother started college, as well. "My senior year I couldn't count on my mom to help me out, so I took out a private loan from Sallie Mae to cover everything that financial aid wouldn't cover," Ruth said. Ruth realized right...
Big banks get green light to make short-term, small dollar loans

Big banks get green light to make short-term, small dollar loans

Finance
Consumers who rely on payday loans to fill their budget gaps may have a new option to turn to: traditional banks. National banks just received the go-ahead to serve that market from their regulator, the Office of the Comptroller of the Currency. On Wednesday, Comptroller of the Currency Joseph Otting called for national banks and federal savings associations to step into the short-term, small-dollar installment loan market. These loans typically range from $ 300 to $ 5,000, according to the regulator. And that adds up to about $ 90 billion in loans ta...