Bankruptcy – Loro Dinapoli http://lorodinapoli.org/ Fri, 08 Apr 2022 00:44:44 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 http://lorodinapoli.org/wp-content/uploads/2021/07/icon-2021-07-06T154208.998-150x150.png Bankruptcy – Loro Dinapoli http://lorodinapoli.org/ 32 32 Benefits of Paying Student Loans Every Two Weeks http://lorodinapoli.org/benefits-of-paying-student-loans-every-two-weeks/ Thu, 07 Apr 2022 21:43:34 +0000 http://lorodinapoli.org/benefits-of-paying-student-loans-every-two-weeks/ When it comes to paying off a student loan, most borrowers opt for the simpler option: regular monthly installments, often withdrawn automatically from a bank account. However, you are not limited to the standard payment schedule. If you choose to pay off your student loans every two weeks instead of once a month, you’ll pay […]]]>

When it comes to paying off a student loan, most borrowers opt for the simpler option: regular monthly installments, often withdrawn automatically from a bank account. However, you are not limited to the standard payment schedule. If you choose to pay off your student loans every two weeks instead of once a month, you’ll pay off your loans faster and save money.

Why Bi-Weekly Payments Help You Pay Off Student Loans Faster

When you make biweekly payments on your student loans, you choose to make 26 half payments instead of the 12 monthly payments you normally would. With 26 half payments made in a year, you end up making an additional full payment on your student loan every 12 months.

The amount you can save with this method depends on how much you owe, your current payment, and the current interest rate on your student loan. However, the following example can give you a general idea.

Let’s say you borrow $36,000 in unsubsidized direct loans for your undergraduate studies, which currently charge a fixed interest rate of 3.73%. On a standard 10-year repayment plan, your monthly payment would be $359.88 and you would pay a total of $4,318.56 over 52 weeks.

Now imagine that you split your payment in half and pay $179.94 every two weeks. Over a year, that equates to $4,678.44, a full payment more than you would otherwise pay. During the 10-year plan, you’ll pay off your student loans 11 months faster.

Plus, you’ll also pay less interest by structuring payments this way. Every dollar you pay over the required amount can go directly to your main balance, meaning less of your payment is eaten up by interest charges over time.

How to set up bi-weekly payments

To set up bi-weekly payments, all you need to do is make a mental note to pay your student loans bi-weekly instead of monthly, then make sure your budget is set accordingly. Most lenders don’t have systems in place to use auto-pay every two weeks, although you can always ask your lender about your options.

For bi-weekly payments to help pay off your student loans, you will need to:

  • Split your monthly payment in half. Take your regular student loan payment and divide it in half. The amount you offer is the amount you will pay on a bi-weekly payment plan.
  • Pay this amount every two weeks. Instead of paying your student loan bill once a month, you’ll make the payment every two weeks.
  • Make both payments before your student loan is due. Both payments made in a month must be applied to your student loan by the due date of each billing period.
  • Make sure your lender is applying payments the right way. You may need to contact your lender to ensure that overpayments are applied to your student loan principal rather than future payments.

How to budget for bi-weekly payments

Making payments every two weeks means you’ll be paying a little more for your student loans each month, so you may need to adjust your budget slightly. If you get paychecks every two weeks, try aligning your student loan payments accordingly — that way, it’s easier to see how biweekly payments affect your monthly expenses.

Once you can compare this bi-weekly payment to your take home pay, make sure you have enough income to cover other major bills and expenses, such as your rent or mortgage payment, car payment, bills insurance, utility bills and typical living expenses. If you need to, cut discretionary spending where you can.

Other ways to pay off student debt faster

If you’re not sure you can afford biweekly payments on your student loans, or if you’re just looking for the fastest way to pay off your student loans, there are additional strategies that may work.

Make payments every 3 weeks

Instead of making biweekly payments for your student loans, or 26 half payments per year, consider making your full monthly student loan payment every three weeks. With this repayment strategy, you would end up making just over 17 student loan repayments per year instead of 12.

Making monthly payments every three weeks will require a greater financial commitment on your part, but the time and money you save can be significant. With the $36,000 example above, making 17 full payments per year would reduce the repayment period by three years – not to mention significantly lower total interest charges.

Consider refinancing your student loans

Borrowers may also consider refinancing their student loans with a private lender, although refinancing federal loans with a private company means missing out on federal benefits such as deferment, forbearance, and repayment plans. income oriented. If your main goal is to get out of debt, refinancing can certainly make sense.

When you refinance, you’ll get a new loan to replace your existing loans, in most cases targeting a lower interest rate. By getting a lower interest rate, you may be able to make larger payments on your principal and shorten your repayment schedule.

Before you refinance student loans, see if you can qualify for the best student loan rates and terms, and use a student loan calculator to determine the total savings.

Implement other debt repayment strategies

If you have multiple student loans and want to save money or pay off debt faster, you can also get a head start with the Snowball or Debt Avalanche repayment methods.

With the debt snowball strategy, you’ll make the minimum payment on all of your loans, then invest as much extra money as you can into your smallest loan each month. As your smaller debts are paid off, you will “snowball” those payments to the next smaller debt until all of your student loans are exhausted. This debt repayment strategy might not make the most sense in terms of savings, but it will help you reduce the number of loans you have while giving you a regular motivational boost.

With Debt Avalanche, on the other hand, you’ll make the minimum payment on all of your loans, and then pay as much as you can on the loan with the highest interest rate each month. As your most expensive debts are paid off, you will “swallow” those payments toward the loan with the highest interest rate until all of your loans are paid off. This debt repayment will help you save the most interest over time, while helping you pay off your student loans faster.

Register for Civil Service Loan Cancellation

You may consider enrolling in the Public Service Loan Forgiveness Program, or PSLF, if you plan to pursue work in the public sector. You must work for an eligible public service employer to qualify, but this plan allows you to make monthly payments on an income-driven repayment plan for 120 months before your remaining loan amounts are forgiven.

Although PSLF requires 10 full years of on-time monthly payments to qualify, this repayment plan can be a lifesaver for people who struggle to pay the payment on a standard 10-year repayment plan, as well as those who could otherwise spend decades in student debt.

Learn more:

]]>
An easier way for student loans http://lorodinapoli.org/an-easier-way-for-student-loans/ Wed, 06 Apr 2022 07:06:09 +0000 http://lorodinapoli.org/an-easier-way-for-student-loans/ There were reports on Twitter yesterday that the student loan repayment moratorium would be extended for a few more months. Robert Kelchen responded that the next Republican administration will likely eliminate the federal student loan program; by making reimbursement unlikely, Democrats may have inadvertently condemned the program altogether. I could see the logic of this […]]]>

There were reports on Twitter yesterday that the student loan repayment moratorium would be extended for a few more months. Robert Kelchen responded that the next Republican administration will likely eliminate the federal student loan program; by making reimbursement unlikely, Democrats may have inadvertently condemned the program altogether.

I could see the logic of this position, although I would hate for it to happen.

It reminded me, however, that there is a better way. It’s more in line with American political culture and our general notions of fairness. It would keep people from being buried under compound interest, but wouldn’t let them get away with what they borrowed. It is even mathematically and administratively easy.

Cancel interest. Require people to pay back every penny they borrowed, but no more than that.

Below is the article I wrote in November 2020 outlining the idea. I propose it again as a politically and economically sustainable compromise that would do good. It certainly makes a lot more sense than a series of very short extensions, followed by a programmatic collapse.

It holds up pretty well, if I say so myself…


I thought of Congress. For normal people, that’s not a good sign, but I’ll plead “recovering political scientist” on this one.

The House is still Democratic, but barely, and the coalition includes people from conservative districts who are wary of anything too progressive. The Senate will likely remain Republican, but even if Democrats win both rounds of the ballot in Georgia and Vice President Harris gets deciding votes, the coalition will still have to carry the likes of Senator Manchin of West Virginia, whose voting record is less than solidly blue. And if historical patterns hold, the incumbent president’s party typically loses seats in the first midterm election, so even a very slim majority is likely to be short-lived.

Yes, I would like to see all student loans forgiven. But I just don’t see that happening, and if it does, victory would probably be Pyrrhic. The idea of ​​erasing the obligations of a group of people is so against American political culture that even if adopted, it would likely fuel a backlash that would do far more damage than reform would do good. .

But this is where I part ways with the usual compromise proposals. I don’t think capping the relief at a given dollar amount helps the situation. The layman’s objection to debt relief is not really the cost; that’s the concept. The cost cap is completely wrong; it leaves the concept (and therefore the opposition) intact, and attenuates its positive impact. And the usual playbook of “only for people earning less than x dollars a year” is no better. This leads to all sorts of paperwork nightmares, delays, requests for exceptions, and financial shenanigans. (As a resident of an extremely expensive state, I can also attest that income thresholds that might seem reasonable in, say, Kansas are patently unreasonable here.) The cap on the amount waived and the cap on the income of those whose loans are forgiven, miss the point. They mitigate the positive impact without doing anything to reduce political opposition. In Twitter parlance, they own themselves.

Instead, I propose a measure that would seem fair to most people, have a chance of gaining and retaining political support, reduce administrative costs, and do some good on the ground.

Cancel interest. Eliminate student loan interest. Each dollar repaid is deducted from the principal.

For people who take a decade or more to pay off their loans, interest can become a significant part of what they end up paying. This is especially true for people with older loans, when rates were higher. Students who owe $50,000 or more can easily find themselves paying five figures in interest. Worse still, if they fall behind, interest increases. But the zeros do not accumulate.

Zero interest would be easy to administer. You wouldn’t need income or verification caps, so the usual shenanigans – and the cost of trying to control those shenanigans – would go away. Overheads would go down and the systems would be much easier to manage.

The political call is clear: people must repay what they have borrowed. They are responsible for their decisions. But recognizing that things have gotten out of control over the past two decades – public divestment from public higher education, in particular – we could stop trying to cash in on debt. Repay everything you borrowed, but only what you borrowed. No more no less.

There is a simplicity and fairness to this proposal that could make it politically feasible and sustainable.

Over time, of course, a much better solution involves both sustained and robust operating support for public colleges and universities and basic income support for students. Even free tuition does not take into account the opportunity cost of education; when you struggle to get enough food, the opportunity cost alone can be prohibitive. It’s miles away from anything resembling a panacea. But I think we are miles away from a political environment in which a panacea could pass.

Combine zero interest with free community college tuition and you start to make a real difference. (For a fallback option to completely free community college — one that seems more in line with American political culture — see my “Buy a year, get one free” proposal here.) These measures do not preclude steps more dramatic in the future, but they offer immediate and tangible relief to some people who desperately need it.

Some economists might object that zero nominal interest is equivalent to negative real interest, taking inflation into account. But it’s a feature, not a bug. Young people trying to start a family and a career – or parents already working in the thick of it – could benefit from some relief. If that relief comes in a subtle way that doesn’t hit anyone like a handout, then everyone is a winner.

Let every dollar repaid count against the principal. People have to pay back every penny they borrowed, but no more than that. No one gets a freebie, and no one is buried under compound interest. Fair is fair. This might get enough support to survive the mid runs.

]]>
Student Loans: How Late Payments Affect Your Credit Score? http://lorodinapoli.org/student-loans-how-late-payments-affect-your-credit-score/ Mon, 04 Apr 2022 15:12:51 +0000 http://lorodinapoli.org/student-loans-how-late-payments-affect-your-credit-score/ Kameleon007 / iStock.com In response to the COVID-19 pandemic, most federal student loans have been suspended since March 2020. Interest on student loans has been set at zero and collections have been halted on delinquent loans through May 1. of this year. Defenders are calling for new loan breaks and an unprecedented loan forgiveness system. […]]]>

Kameleon007 / iStock.com

In response to the COVID-19 pandemic, most federal student loans have been suspended since March 2020. Interest on student loans has been set at zero and collections have been halted on delinquent loans through May 1. of this year. Defenders are calling for new loan breaks and an unprecedented loan forgiveness system.

Discover: 9 bills you should never put on automatic payment
More: 25 sneaky tricks for car dealerships to avoid at all costs

Regardless of when you need to resume your payments, student loans are debt like any other, and your payment practices can help or hurt your credit score.

Even a single payment default can cause a borrower’s credit rating to plummet. A series of missed student loan payments can hurt your credit score — and your financial future. On the other hand, executing a repayment plan correctly can boost your credit score, which will help you apply for future loans and credit cards.

There are many types of credit scoring models. The most common, the FICO system, uses five factors to determine your score: payment history, amounts owed, length of credit history, new credit applications, and credit mix. Depending on these factors, your credit report will have a score ranging from 300 (poor) to 850 (excellent).

Of these criteria, payment history is the most important in determining your score. Late payments can have a negative effect on your credit score. Neglecting to meet payment deadlines can place you in default or delinquent status. When you are consistently late on payment, it is reported to the major credit bureaus (Equifax, TransUnion, Experian).

Although there is no difference between the impact of private and federal student loans on credit scores, the way they can affect your credit rating is different due to their relative terms. Federal loans are generally more forgiving, as they have a 90-day waiting period before you are flagged. This means that you have three months to work out an arrangement with your lender.

Private lenders could report late payments as early as 30 days past due. Depending on the terms of the student loan company, you may also be subject to late fees, which will increase your loan balance and interest.

See: 100,000 more public servants will have their student loan debt forgiven due to this policy change
Find: 5 fastest ways to boost your credit score

Whether you’re due to start paying off your student loan in May or later, it’s important to think about how you’re going to do it. By establishing a good credit payment history, creating a credit mix, and not living beyond your means, you can start building your credit score even while in school – and avoid damage to your credit score. credit that could stay with you for years.

More from GOBankingRates

About the Author

David Nadelle is a freelance editor and writer based in Ottawa, Canada. After working in the energy industry for 18 years, he decided to make a career change in 2016 and focus full-time on all aspects of writing. He recently completed a technical degree in communications and holds previous university degrees in journalism, sociology and criminology. David has covered a wide variety of financial and lifestyle topics for numerous publications and has experience writing for the retail industry.

]]>
Launch of Touch ‘n Go GOpinjam in Malaysia – digital personal loans via eWallet app; supported by CIMB http://lorodinapoli.org/launch-of-touch-n-go-gopinjam-in-malaysia-digital-personal-loans-via-ewallet-app-supported-by-cimb/ Fri, 01 Apr 2022 04:53:00 +0000 http://lorodinapoli.org/launch-of-touch-n-go-gopinjam-in-malaysia-digital-personal-loans-via-ewallet-app-supported-by-cimb/ Touch ‘n Go Group today launched GOpinjam, a digital personal loan service accessible through the Touch ‘n Go eWallet app. The new service is the first time a digital lending solution has been offered by TnG eWallet, having introduced financial service propositions in investments (GO+) and insurance. Developed in partnership with CIMB Bank Berhad, GOpinjam […]]]>

Touch ‘n Go Group today launched GOpinjam, a digital personal loan service accessible through the Touch ‘n Go eWallet app. The new service is the first time a digital lending solution has been offered by TnG eWallet, having introduced financial service propositions in investments (GO+) and insurance.

Developed in partnership with CIMB Bank Berhad, GOpinjam is backed by CIMB’s e-Zi Tunai Personal Loan, offering personal loans from RM100 up to a maximum of RM10,000, to users aged 21-63.

The repayment period for these loans can range from a week to a year, with no hidden charges or early settlement fees. Fixed interest rates apply, and they vary from 8% to 36% per annum, depending on the term of the loan.

It should be noted that potential borrowers will need a minimum monthly income of RM800 to access GOpinjam. New users who wish to apply will need to submit either a one-month payslip or the latest EPF statement, along with basic information for the loan application.

For repeat users, the process is simpler, requiring only verification of app information (taken from the previous app). Once the request is approved, users will be notified via the TnG eWallet app and the funds will be paid out either to their e-wallet or to their CIMB bank account.

The whole process is done digitally through the app, so there is no need to go to a bank counter. Users can also apply for more than one loan under GOpinjam, as long as the amount of each loan does not exceed the cap of RM10,000.

“It’s a real market first. We researched the landscape extensively before building GOpinjam and I believe we have found a proposition that delivers significant value to our users, while addressing the pain points of current personal loan propositions,” said Effendy Shahul Hamid , CEO of Touch. ‘n Go Group.

“The element of financial inclusion has always been at the forefront of our thinking, and we expect GOpinjam to be available to those who otherwise would not have been able to access formal credit facilities,” a- he added.

]]>
Bank of Spain asks banks to monitor subsidized loans amid Ukraine crisis uncertainty http://lorodinapoli.org/bank-of-spain-asks-banks-to-monitor-subsidized-loans-amid-ukraine-crisis-uncertainty/ Tue, 29 Mar 2022 16:06:00 +0000 http://lorodinapoli.org/bank-of-spain-asks-banks-to-monitor-subsidized-loans-amid-ukraine-crisis-uncertainty/ A woman walks past a branch of the Bank of Spain, during the coronavirus disease (COVID-19) outbreak, in the Andalusian capital of Seville, Spain, April 10, 2020. REUTERS/Marcelo del Pozo Join now for FREE unlimited access to Reuters.com Register MADRID, March 29 (Reuters) – Spanish banks must carefully monitor the risks and a potential increase […]]]>

A woman walks past a branch of the Bank of Spain, during the coronavirus disease (COVID-19) outbreak, in the Andalusian capital of Seville, Spain, April 10, 2020. REUTERS/Marcelo del Pozo

Join now for FREE unlimited access to Reuters.com

MADRID, March 29 (Reuters) – Spanish banks must carefully monitor the risks and a potential increase in bad debts on state-guaranteed loans made during the pandemic, as repayment freezes are lifted and the indirect impacts of the war in Ukraine are manifesting themselves in credit portfolios, the Bank said. of the Spanish vice-governor said on Tuesday.

“There are still many uncertainties around the economy, now fueled by the Ukraine crisis and so we need to be vigilant on the evolution of loans, especially now that the grace periods for loans guaranteed by the ICOs are going to start being lifted,” Deputy Governor Margarita Delgado said.

In 2020, the government approved up to 140 billion euros ($155.39 billion) of so-called ICO liquidity lines, where Spain guaranteed up to 80% of loans that were channeled through banks. small and medium-sized enterprises and the self-employed. .

Join now for FREE unlimited access to Reuters.com

On Tuesday, the government approved a new €10 billion line of subsidized loans, with a 12-month repayment freeze, or so-called grace periods, where companies are required to pay only interest and not the principal of a loan. Read more

On existing COVID-19 loans, the government has generally extended maturities from eight to 10 years and automatically extended grace periods by six months.

Delgado said on Tuesday that she expects companies to start bearing the financial burden of loan repayments in the second quarter.

Regarding bad debts, Delgado said that in 2021, the volume of non-performing assets followed the downward trend of the past few years, “although at a much slower pace compared to what s was produced before the pandemic”.

In January, non-performing loans from Spanish banks stood at 4.32%, still far from their peak of 13.6% in December 2013.

Delgado said, however, that the growth of loans subject to special monitoring, or considered to be subject to increased credit risk, had been moderate in the last half of last year, “although it continues to grow at double digit rate.

($1 = 0.9010 euros)

Join now for FREE unlimited access to Reuters.com

Reporting by Jesús Aguado; edited by John O’Donnell and William Maclean

Our standards: The Thomson Reuters Trust Principles.

]]>
Bank of Bahrain and Kuwait BSC: BBK offers car loans with exceptional benefits this Ramadan http://lorodinapoli.org/bank-of-bahrain-and-kuwait-bsc-bbk-offers-car-loans-with-exceptional-benefits-this-ramadan/ Sun, 27 Mar 2022 06:01:02 +0000 http://lorodinapoli.org/bank-of-bahrain-and-kuwait-bsc-bbk-offers-car-loans-with-exceptional-benefits-this-ramadan/ ​ Bank of Bahrain and Kuwait (BBK), Bahrain’s pioneer in retail and commercial banking, launches its car loan campaign with unprecedented offers during the holy month of Ramadan in a bid to share the joy of this month sacred with its loyal customers and residents of the Kingdom of Bahrain. Through this campaign, BBK will […]]]>

Bank of Bahrain and Kuwait (BBK), Bahrain’s pioneer in retail and commercial banking, launches its car loan campaign with unprecedented offers during the holy month of Ramadan in a bid to share the joy of this month sacred with its loyal customers and residents of the Kingdom of Bahrain.

Through this campaign, BBK will offer competitive preferential interest rates on auto loans that would be made available to all customers, in addition to free life insurance on the loan. In addition, all customers approved for car loans will also have the opportunity to enter a raffle to win a cash prize worth 500 BD. The prize will be available for 30 customers.

The bank has announced that all borrowers will also enter a raffle for a chance to partially settle their loan up to 5,000 BD on the occasion of its 50and Birthday party. All approved customers will also be able to participate in all upcoming draws through January 24and2023.

Dr. Adel Salem, General Manager of Retail Banking at BBK, confirmed that in addition to the benefits offered, BBK is keen to offer simplified lending procedures, speed up approvals and provide flexible payment terms and loan terms based on the customer’s financial solvency.

“These exceptional auto credit offers are part of BBK’s various credit offers, which also include consumer loans and mortgages, each with its own set of advantages. Our objective is to make BBK the partner of choice individuals and institutions to provide them with adequate funding and help them achieve their goals and aspirations,” says Dr. Adel.

For more information on this special offer, interested candidates can contact the call center on 17207777 and BBK employees will be happy to assist you.

Warning

BBK BSC published this content on March 27, 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unmodified, on March 27, 2022 06:00:05 AM UTC.

]]>
Hwa Fong Rubber Ind: The amount of new loans financed by the subsidiary reaches NT$10 million and is more than 2% of the net worth shown in the latest financial report. http://lorodinapoli.org/hwa-fong-rubber-ind-the-amount-of-new-loans-financed-by-the-subsidiary-reaches-nt10-million-and-is-more-than-2-of-the-net-worth-shown-in-the-latest-financial-report/ Fri, 25 Mar 2022 02:26:08 +0000 http://lorodinapoli.org/hwa-fong-rubber-ind-the-amount-of-new-loans-financed-by-the-subsidiary-reaches-nt10-million-and-is-more-than-2-of-the-net-worth-shown-in-the-latest-financial-report/ Declaration 1.Date of occurrence of the event:2022/03/25 2.Funding recipient name, relationship with lender, lending limit (thousand NTD), starting outstanding balance (thousand NTD), new loan (thousand NTD), is it part of a scheduled allocation or revolving limit for the same recipient that the chairman is authorized by the board of directors to allocate, outstanding balance (thousand […]]]>

Declaration

1.Date of occurrence of the event:2022/03/25
2.Funding recipient name, relationship with lender, lending limit
(thousand NTD), starting outstanding balance (thousand NTD), new loan
(thousand NTD), is it part of a scheduled allocation or revolving limit for
the same recipient that the chairman is authorized by the board of directors
to allocate, outstanding balance (thousand NTD) up to the date of
occurrence, reason for new loan (thousand NTD):
(1)Funding recipient name:HWA FONG RUBBER (SUZHOU) CO., LTD
(2)Relationship with lender:The Company's subsidiary
(3)Lending limit (thousand NTD):4,838,684
(4)Starting outstanding balance (thousand NTD):103,508
(5)New loan (thousand NTD):103,508
(6)Is it part of a scheduled allocation or revolving limit for
the same recipient that the chairman is authorized by
the board of directors to allocate:No.
(7)Outstanding balance (thousand NTD) up to the date of occurrence:207,016
(8)Reason for new loan (thousand NTD):Extension of original contract.
3.For collaterals provided by the loan recipient, the content and the value
(thousand NTD):None.
4.For the latest financial reports of the loan recipient, the capital
(thousand NTD) and the cumulative gains/losses(thousand NTD):
(1)Capital(thousand NTD):2,104,963
(2)Cumulative gains/losses(thousand NTD):-2,080,134
5.Method of calculation of interest:Interest calculated semi-annually.
6.For repayment, the condition and the date:
(1)Condition:Pay off debts.
(2)Date:In accordance with the contract.
7.The amount of monetary loans extended to others as of the date of
occurrence (thousand NTD):1,100,309
8.The total amount of monetary loans extended to others as a percentage of
the public company's net worth on the latest financial statements as of the
date of occurrence:36.15
9.Sources of funds for the company to extend monetary loans to others:Others.
10.Any other matters that need to be specified:None.
]]>
Education Loans – Do They Serve Their Real Purpose? http://lorodinapoli.org/education-loans-do-they-serve-their-real-purpose/ Wed, 23 Mar 2022 11:47:23 +0000 http://lorodinapoli.org/education-loans-do-they-serve-their-real-purpose/ While the Union government and the Reserve Bank of India (RBI) are emphasizing on providing education loans to all needy and deserving students, a much more cautious question is: the loans reach the poor, in accordance with the mandate of the student loan policy to benefit poor students, which has been in place since 2001? […]]]>

While the Union government and the Reserve Bank of India (RBI) are emphasizing on providing education loans to all needy and deserving students, a much more cautious question is: the loans reach the poor, in accordance with the mandate of the student loan policy to benefit poor students, which has been in place since 2001? Over the past two years, major public sector banks (PSBs) have not met their targets; when the need for educational loan increased, the Lok Sabha was notified.

According to the response given to Lok Sabha, Public Sector Banks (PSBs) are assigned educational loan disbursement targets at the bank level, not at the state or district level. SBI (State Bank of India), Canara Bank and PNB (Punjab National Bank) are the main lenders in this category. However, they have consistently fallen short of their targets, particularly in the last two fiscal years when the need for student loans has increased.

In this regard, Naleen Kumar Kateel, Member of Parliament (MP) raised questions in Lok Sabha on the targets set by the government for student loans and whether the economically weaker strata of society are getting these loans from the Bank.

The top states for student loan sanctioning in India are Tamil Nadu (Rs16,302 crore), Kerala (Rs11,051 crore), Maharashtra (Rs8,882 crore), Karnataka (Rs7,965 crore ) and Andhra Pradesh (Rs6,190 crore). Together, these five states represent 55% of outstanding education loans as of December 31, 2021.

We try to answer these questions, some through the answers of the Lok Sabha and others through our research and analysis. According to CRIF High Mark Credit Information Services Pvt Ltd, 90% of education loans come from public sector banks by value and volume.

Under the student loan scheme, banks can lend up to Rs7.5 lakh for study in India and up to Rs15 lakh for study abroad. For education loans up to Rs4 lakh, no collateral or margin is required, while for loans above this limit, the borrower is required to provide collateral, however, banks are reluctant to lend at this category, so that the social objective of helping students who are struggling to finance their higher education costs is lacking.

The Association of Indian Banks (IBA) formulated a model education loan scheme for its member banks in 2015. The The RBI Circular on the Model Educational Loan Program in 2001 stated that “no deserving student is denied the opportunity to pursue higher education for lack of financial support”.

The rising cost of education makes it difficult for parents to finance their children’s education. An MBA from a top private business school costs more than Rs20 lakh. The cost of education in a top Ivy League college is over $75,000.

According to a study by management consulting group RedSeer, overseas education spending is expected to rise to $80 billion by 2024.

The rising cost situation has been exacerbated by the pay cuts and job losses associated with the pandemic. It is estimated that 1 in 5 students have struggled to cover their fees, even after being at university for a year. As education is a major concern for Indians, education loans are essential in terms of building skills and improving the productivity and efficiency of the economy and people. However, the education loan portfolio is only a tiny fraction of the retail loan portfolio of all commercial banks in India, at around 3.3%.

In August 2015, the IBA published Revised guidance notes on the student loan plan. “The student borrower has no credit history and as such is assumed to be creditworthy as this is a futuristic loan,” he said.

According to the RBI Circular, “The main emphasis is that every deserving student though poor should have the opportunity to continue their studies with the financial support of the banking system on affordable terms.”

Yet students from economically disadvantaged backgrounds who apply for student loans are often rejected by public sector banks, citing their parents’ low credit ratings. Banks are expected to sanction loans to students who belong to economically weaker sections, keeping in mind their board-approved loan policies. However, this is not implemented in practice.

According to RBI data and response to another question raised by MP DK Suresh and Mr. Kateel again, the following figures show outstanding education loans in India.

Outstanding Student Loans in India (in Rs Crore)

The other side of this story is the high number of NPAs (non-performing assets or bad debts) in the education lending segment. The NPA figure for education loans was 8.1%, 8.3% and 7.6%, respectively for FY18, FY19 and FY20, just behind the industrial and agricultural sector. This figure was 9.17% in September 2021 compared to 10.32% in the June quarter 2021. In absolute terms, the NPA in September 2021 stood at Rs 1,023 crore.

However, benefits have been granted to borrowers to deal with the impact of the COVID-19 pandemic on their income. RBI has authorized a six-month moratorium on the payment of all installments falling due between March 1, 2020 and August 31, 2020 without downgrading the asset classification. Further, in its August 2020 monetary policy, the RBI introduced measures to restructure debt if loans were classified as “standard” as of March 1, 2020.

This included rescheduling payments, converting any accrued or accrued interest into another credit facility or granting a moratorium based on assessment of the borrowers’ income stream, subject to a maximum of two years. Accordingly, the overall term of the loan may also be changed accordingly.

Borrowers got the help they needed to weather the pandemic-induced challenges; however, we have a long way to go to achieve educational equity through loans, even after these loans have been available in India for over two decades now!

]]>
GSIS provided P151-B loans to over 1 million members and retirees in 2021 – Manila Bulletin http://lorodinapoli.org/gsis-provided-p151-b-loans-to-over-1-million-members-and-retirees-in-2021-manila-bulletin/ Sat, 19 Mar 2022 01:14:00 +0000 http://lorodinapoli.org/gsis-provided-p151-b-loans-to-over-1-million-members-and-retirees-in-2021-manila-bulletin/ A total of 151 billion pesos in loans were granted by the Government Services Assurance System (GSIS) to more than one million members and retirees in 2021, GSIS President and CEO Rolando L has revealed. Macasaet. Macasaet noted that this is a 4% increase from the previous year’s total of 145 billion pesos. “Through our […]]]>

A total of 151 billion pesos in loans were granted by the Government Services Assurance System (GSIS) to more than one million members and retirees in 2021, GSIS President and CEO Rolando L has revealed. Macasaet.

Macasaet noted that this is a 4% increase from the previous year’s total of 145 billion pesos.

“Through our various Ginhawa For All (GFAL) loan programs, GSIS has extended its financial assistance at a time when our members and retirees were in dire need of assistance,” he said in a statement, adding that GSIS continues to improve its policies and programs. through the comments and contributions of its members.

HMIS

Of this total amount, Macasaet said 106 billion pesos was under GFAL Multipurpose Loans (MPL).

“The loan is intended to help active members, especially those who have reached their borrowing limit and [are] unable to repay their loans. It consolidates members’ existing loans, with the exception of home loans and policies, and waives surcharges on defaulted accounts.

According to GSIS, members can apply for up to 14 times their basic monthly salary, but not to exceed 3 million pesos through GFAL MPL.

GSIS has announced that it will launch GFAL GSIS MPL Plus this month. It is an improved version of its current MPL program.

“Under the lending window, GSIS will increase the credit limit to P5 million; extending the maximum payment period to 10 years; and relaxing borrower eligibility requirements.

In addition, the state pension fund released 27 billion pesos to 62,974 beneficiaries of the GSIS financial assistance loan, through which members were able to borrow up to 500,000 pesos, consolidate their loans from institutions credit institutions from their branches and transfer the remaining balance to GSIS.

Under the GFAL computer loan program, GSIS said it has disbursed more than 7 billion pesos in gross proceeds, benefiting more than 230,205 borrowers. The GFAL Computer Loan is a loan window that grants P30,000 assistance to GSIS members to purchase a computer unit for their work from home or their children’s online lessons.

The state pension fund also granted 6 billion pesos to 269,440 regular and optional borrowers; 1 billion pesos to 38,980 GFAL emergency loan borrowers; and 89 million pesos to 2,035 members through Ginhawa’s educational loan program.

Meanwhile, for retirees, 3.03 billion pesos and 96 million pesos were released in the form of GFAL enhanced pension loan (38,144) and emergency loan for retirees (4,415), respectively .

SUBSCRIBE TO THE DAILY NEWSLETTER

CLICK HERE TO JOIN

]]>
Bank of Bahrain and Kuwait BSC: competitive loans that meet your BBK needs http://lorodinapoli.org/bank-of-bahrain-and-kuwait-bsc-competitive-loans-that-meet-your-bbk-needs/ Wed, 16 Mar 2022 05:38:09 +0000 http://lorodinapoli.org/bank-of-bahrain-and-kuwait-bsc-competitive-loans-that-meet-your-bbk-needs/ ​ BBK, the retail and commercial banking pioneer in Bahrain, said its team of experts is constantly striving to expand its financing offerings to citizens and residents of Bahrain, to meet their current and future needs and to ensure that they have the necessary financial resources to carry out their various personal, family and professional […]]]>

BBK, the retail and commercial banking pioneer in Bahrain, said its team of experts is constantly striving to expand its financing offerings to citizens and residents of Bahrain, to meet their current and future needs and to ensure that they have the necessary financial resources to carry out their various personal, family and professional projects. This is in line with the Bank’s duty to serve all of its customers, while supporting the commercial sector and economic growth of the Kingdom of Bahrain.

Retail banking managing director Dr Adel Salem said BBK would announce special offers on its wide range of loans such as consumer, car, mortgage and Mazaya loans, in addition to specially designed loans. for women, working professionals and retirees. “This is part of BBK’s strong commitment to providing the best financial and banking services to its existing and new customers, which includes the bank’s continued development of its loan offerings by offering low interest rates, diversifying loan repayment periods, facilitating guarantees, etc.

Dr. Adel also said that the bank’s ability to diversify its credit products and increase its competitiveness confirms its high financial solvency, as well as its ability to respond to the aspirations of its customers and shareholders, within the framework defined by its board. administration.

BBK strives to grant very competitive loans, to facilitate the administrative procedures for obtaining the loan and to speed up the granting process while granting flexible repayment periods allowing the customer to choose a suitable repayment plan.

It should be noted that the Bank recently announced that it will settle 50 loans totaling BD 250,000 to celebrate its Golden Jubilee.

BBK will also be promoting its mortgages at a stand at the Gulf Property Show and is launching a new car loan campaign during Ramadan which would be available at all car dealerships in Bahrain. Those interested in applying for BBK car loans can inquire about the BBK offer at car showrooms or call the bank’s call center.

BBK also intends to announce the launch of new credit facilities in the near future that meet consumer needs and will be announced in due course.

BBK is continuously striving to be ahead to meet the demand and expectations of its customers with the newly launched enhanced Digital Banking Channel, BBK Mobile Banking App and Online Banking as well as the BBKPLUS Digital Onboarding App. which are part of BBK’s ongoing efforts to provide its customers with a seamless and convenient banking experience.

]]>