IT lending – Infogima Wed, 22 Sep 2021 14:05:00 +0000 en-US hourly 1 IT lending – Infogima 32 32 Zest AI Doubles Credit Union Market for AI Underwriting Wed, 22 Sep 2021 14:05:00 +0000

LOS ANGELES, September 22, 2021 / PRNewswire / – Zest AI, a leader in AI-powered underwriting software, today announced a series of measures that underscore its commitment to the credit union industry. Zest has received registered status as a Credit Union Service Organization or CUSO; received an equity investment from the Curql Fund, the largest venture capital fund for the UC industry; and welcomed more leading credit unions to the Zest family of customers.

“Credit unions are our fastest growing customer segment, and I’ll tell you why: Credit unions want to enrich their communities by saying ‘yes’ to more of their members. AI-based loans help them do it faster and with more confidence. Credit unions that use Zest software are going to have a major advantage over banks and fintechs, ”says Zest AI CEO. Mike de Vere.

“We are confident that the future of underwriting will be based on machine learning,” said Bob birr, Vice President, Director of Loans at Credit Union West at Glendale, Arizona. “We looked at a range of ML options, and Zest AI had the greatest impact in terms of more funded loan approvals and reduced risk for cards, auto loans, and personal loans. Partners like Zest can help us improve the lending experience for members and employees. and realize our vision to be our members’ trusted financial services provider for life. “

Achieving CUSO status makes it even easier for credit unions and other CUSOs to work with Zest by establishing the Zest team as a trusted partner and participant in the CU community. Over the past few weeks, Zest has welcomed GreenState Credit Union, HawaiiUSA Federal Credit Union, Credit Union West, and IH Credit Union to the family of CUs making better decisions with Zest software. By the end of the year, across its customer base, Zest software will fuel subscription for 10 million combined members, making Zest the trusted option for the CU community.

Zest also announced a new investment from Curql Collective’s venture capital fund, Curql Fund, the largest venture capital fund in the credit union industry, to close its Series E at $ 40 million. “Zest AI is bringing significant changes to credit unions and better experiences for their members through technology, and we couldn’t be happier to support this mission,” said Nick evens, President and CEO of Curql Collective.

About Zest AI
Zest AI software helps lenders make better decisions and better loans, increasing revenue, reducing risk, and automating compliance. Zest AI was founded in 2009 with the mission of making fair and transparent credit accessible to all and is today the leader in software for more inclusive underwriting. The company is headquartered in Los Angeles, California. Learn more about and connect with us on Twitter at @Zest_AI or Zest AI Knowledge Blog.

About Curql Collective

Curql Collective is a collaborative approach that brings together venture capital, credit unions and fintech. Launched in 2020, Curql is led by a collective of forward-thinking credit unions, comprising former founders, operators and leaders of fintech and VC spaces. The group’s flagship product, Curql Fund I, invests in the visions of entrepreneurs who thoughtfully and deliberately develop financial services technology that revolutionizes and innovates the way people engage with their money. For more information visit


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Acuity Knowledge Partners Launches Personal and Consumer Credit Services for Banks | Business Tue, 21 Sep 2021 14:04:58 +0000

NEW YORK – (BUSINESS WIRE) – Sep 21, 2021–

Acuity Knowledge Partners (Acuity) – a leading provider of tailor-made research, analysis and technology solutions to the financial services industry – today announces the launch of its retail lending services to help commercial banks and detail in the origination, processing, underwriting, closing and post-closing of space loans. As a result, Acuity has expanded its presence, covering all lending divisions, allowing banks to leverage Acuity’s strong expertise in the area for all of their lending services.

“The strong economic recovery, along with an increase in demand for housing in the United States, indicates that homebuyers and small business owners need quick responses to their loan requests,” said Robert King, CEO of Acuity Knowledge Partners. “Banks are partnering with Acuity to help them streamline lending processes. With Acuity’s in-depth understanding of the business and its flexible staffing model, banks can achieve faster response time, better risk decisions, and savings of 35-40% on banking operations. creation of loans, underwriting and management.

Acuity has nearly 20 years of experience supporting global banks throughout the loan lifecycle. Its retail lending services provide origination, processing, underwriting, closing and post-closing assistance for consumer mortgages and other retail products. Leveraging a blend of people, processes and technologies, the company provides tailored solutions to its 90+ banking clients spanning personal, business, mid-market, real estate and effect finance lending. leverage.

“We now officially support banks on institutional and retail credit operations. The tangible and measurable results our partnership has generated on the institutional side have led many of our clients to get involved in their mortgage and retail business, ”said Damian Burleigh, Director of Revenue and Marketing, Acuity Knowledge Partners. “This natural extension is sure to create economies of scale for our existing customer base and open up new avenues for our services with regional banks and other strong retail players. “

“We expect loan volumes to increase over a period of time as the economy gradually recovers from the impact of the pandemic and ease of supply on the housing market,” said Rajul Sood, global head of housing. commercial and retail lending solutions, Acuity Knowledge Partners. “Our mortgage underwriting, due diligence and loan management capabilities will give our clients a competitive advantage at this critical juncture to help them speed to market and optimize their lending processes. “

Acuity’s loan support agents standardize and streamline end-to-end approval, underwriting and loan service processes, using technology platforms, while identifying red flags in loan requests, such as high credit card usage, late payments, or lack of credit history. In doing so, Acuity enables banks to grow their loan portfolios, improve the customer experience, and mitigate the risk of default and default on their loans.

The gradual economic recovery from the pandemic, along with strong economies and low mortgage rates, means that the goal of homeownership for potential new buyers is within reach. Although recent data suggests a slowdown in the housing market, competition is likely to remain vigorous in the US market in the short to medium term.

About Acuity Knowledge Partners

Acuity Knowledge Partners is a leading provider of tailor-made research, analysis and business intelligence to the financial services industry. The company’s network of analysts and industry experts, combined with its advanced data and technologies, help more than 400 financial institutions and consulting firms around the world operate efficiently and unleash their human capital, increasing thus their income and transforming their operations. She specializes in investment banking, investment research, private equity, advisory and commercial loans. Acuity is headquartered in London and operates from 10 locations around the world. In 2019, the company was formed as a separate venture from Moody’s Corporation, following a management buyout backed by Equistone Partners Europe. For more information visit

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SOURCE: Acuity Knowledge Partners

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HDFC Bank leads the way to double personal loans Tue, 21 Sep 2021 02:38:04 +0000

HDFC Bank Ltd., India’s largest private lender, plans to double the amount of loans it provides to retail borrowers over the next two years as consumer demand intensifies after a market-induced slowdown. pandemic.

Uncertainty is diminishing and demand is improving as companies seek to support growth after Covid-19, said Arvind Kapil, the bank’s national head of retail assets, in an interview. This is an opportunity to reverse the declining share of lending to that segment of the market that was necessary to preserve asset quality, he said.

“We plan to double our portfolio of retail assets on a targeted basis,” Kapil said. “I can sense a strong demand at ground level. I run businesses and give you an idea of ​​what I’m seeing.”

Of the 11.5 trillion rupees ($ 156 billion) total of the bank’s loan portfolio, Kapil is responsible for retail borrowing worth 3.7 trillion rupees, which is expected to reach nearly 8 trillion. rupees over the next two years.

If successful, it would mark a sharp turnaround from its strategy a year ago when the bank slowed its retail lending to protect the quality of its assets as the pandemic resulted in millions of job losses and business closures.

HDFC Bank’s share of retail loans as part of its total fell to 47% in March, the lowest in at least five years, from an average of 54% to 55% previously. The bank, which is also the most valuable in the country, has the lowest bad debt ratio among its peers and now wants to focus on unsecured loans for salaried workers, auto loans and government affairs.

“We are taking a fairly aggressive stance to develop our portfolio of retail loans,” said Kapil. “We want to accelerate in segments where we can maintain asset quality and deliver the best return on assets.”

The Mumbai-based lender’s retail loans grew about 9.3% slower than the 14.4% of its overall portfolio in the June quarter. This is significantly lower than its peers like State Bank of India’s 16.5% growth and ICICI Bank’s 20% growth in this portfolio. Yet lenders also saw an increase in bad debts in retail loans during the June quarter after an unexpected and deadlier new wave of the virus ravaged India. Since then, loan recoveries have improved and, for HDFC Bank, have returned to pre-pandemic levels, Kapil said.

“The results of doubling our activity will be more visible at the start of next fiscal year,” he said. “We will balance our top line growth with our return on assets target.”

This story was posted from an agency feed with no text editing. Only the title has been changed.

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Lancewood Capital Expands National Lending Platform Presence in 2021 Mon, 20 Sep 2021 15:34:01 +0000

Lancewood Capital, a New York-based commercial real estate lender, continues to be a trusted source of capital for real estate investors seeking short-term bridge loans and private lenders seeking senior or senior note financing. credit facilities.

Lancewood was founded seven years ago by a New York-based family office to invest in real estate debt. Justin Godner and Matt Schatzle, who were instrumental in founding Lancewood, attribute the success and growth of the company to its unique family office capital structure and the strength of the Lancewood team that works without slack to provide the best execution to borrowers.

Asked about the platform, Justin Godner spoke about Lancewood’s family office capitalization structure, which allows for bank-like pricing, structural creativity and tailor-made financing for their borrowers, which he says constitutes the company’s competitive advantage.

When asked about the market, Matt Schatzle noted the liquidity of the debt market and the options available to borrowers today, which he said makes consistent execution for borrowers very important in order to gain loyal customers. .

Stephen Zaro, who recently joined the company, noted that Lancewood’s ability to provide prices close to the bank allows the company to gain a lot of business.

As Lancewood continues to grow in the New York metropolitan area – with more than $ 100 million in capital deployed to the region in 2020 – the company is also looking to expand into other primary markets, particularly Atlanta, in Florida, California and Texas, according to Tino Martins, director of commercial mortgages at Lancewood.

The company is increasingly active in Florida and California, where Matt Schatzle and Stephen Zaro have provided bridge loans and Justin Godner has set up two $ 50 million senior credit facilities with $ 19.2 million funded. to date for real estate lenders based in Florida and California.

Here are some of the recent shutdowns of the platform:

$ 6,450,000 bridge loan to finance the completion of a construction project in the Tribeca neighborhood of New York, NY. Lancewood Capital was able to provide capital to complete the project at a rate close to the bank. This transaction was structured by Matt Schatzle of Lancewood.

$ 50,000,000 senior credit facility with initial advances of $ 7,500,000 and $ 3,300,000 for a Florida-based mortgage lender. The underlying properties are located in Miami, Florida. This transaction was structured by Justin Godner of Lancewood.

Senior note financing of $ 16,020,000 for an underlying loan of $ 20,000,000 secured by a mixed-use building in New York, NY. This transaction was structured by Justin Godner by Lancewood.

$ 3,800,000 bridge loan to finance a mixed-use property in the Ybor City neighborhood of Tampa, Florida. This transaction was structured by Stephen Zaro of Lancewood.

A bridge loan of $ 2,850,000 to finance three buildings located in the Midtown East district of New York, NY. This transaction was structured by Matt Schatzle of Lancewood.

$ 50,000,000 senior credit facility with an initial advance of $ 1,720,000 for a Seattle-based mortgage lender. The underlying industrial property is located in Los Angeles, California. This transaction was structured by Justin Godner of Lancewood.

$ 6,500,000 senior note financing for an underlying loan of $ 12,000,000 secured by a single family residence in Miami, Florida. The underlying lender is based in Florida. This transaction was structured by Justin Godner of Lancewood.

Bridge loan of $ 3,410,000 to finance a 31-unit multi-family building in the Fordham Heights neighborhood of New York. This transaction was structured by Matt Schatzle of Lancewood.

Funding of a $ 12,000,000 senior note for an underlying loan of $ 20,000,000 for the completion of a land development in the SoHo neighborhood of New York, NY. This transaction was structured by Justin Godner by Lancewood.

$ 1,400,000 bridge loan to finance a 26,000 square foot owner-occupied industrial building in Boynton Beach, Florida. The borrower needed a quick close to seize an urgent acquisition opportunity. This transaction was structured by Matt Schatzle of Lancewood.

Senior note financing of $ 7,360,000 to finance a newly constructed condominium in New York, NY. The units were recently put on the market and the developer needed a condo inventory loan. This transaction was structured by Justin Godner by Lancewood.

$ 50,000,000 senior credit facility with an initial loan advance of $ 7,800,000 for a New York-based mortgage lender. The underlying property is located in Brooklyn, NY. This transaction was structured by Justin Godner by Lancewood.

$ 3,000,000 bridge loan secured by an eight-unit condominium in the Bushwick neighborhood of Brooklyn, NY and four mixed-use buildings in downtown White Plains, NY. This transaction was structured by Matt Schatzle of Lancewood.

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The great power of nanolending – Journal Mon, 20 Sep 2021 03:06:07 +0000

Fact 1: Conventional banks have around 3.5 million borrowers despite having been active in the lending industry for decades.

Fact 2: The number of active borrowers from microfinance providers, a new kid on the block of access to finance, has already passed the 8 million mark.

Now take a closer look at the disaggregated data of the microfinance industry, and it will reveal a very specific reason for the recent surge in the number of microfinance borrowers: the unmistakable increase in nano-credit users in Pakistan.

Nanocredit refers to tiny loans as low as Rs50 that the poorest of the poor can get for days or weeks on their phones. Artificial intelligence determines their creditworthiness and the loan provider pays the sanctioned amount into the borrower’s account within minutes without any human intervention.

Nanocredit was just another fancy term CEOs liked to use until recently. But this segment appears to have grown in importance in the past year alone.

For example, Mobilink Microfinance Bank has managed to increase its number of active borrowers by almost 250% in just one year. The bank is a subsidiary of the multinational VEON and a sister company of the local telecommunications operator Jazz, which has 60 million subscribers.

“Jazz customers shouldn’t just stay as customers over the phone – they should be encouraged to turn their phones into bank accounts,” says Ghazanfar Azzam

Mobilink Microfinance Bank has become the largest microcredit provider in terms of number of active borrowers, recently overtaking Khushhali Microfinance Bank, one of the oldest. At the end of June, the market share of Mobilink Microfinance Bank was 22.1% against 7.4% a year ago.

“We started offering Rs500 nano-loans some time ago. Its adoption was slow at first as we were also learning and improving our algorithms. In the last quarter, up to 1.7 million people used nanocredit, ”said Ghazanfar Azzam, CEO of Mobilink Microfinance Bank.

For context, the total number of its active borrowers in the April to June quarter was higher than the corresponding figure for the second and third largest microfinance providers combined.

Telenor Microfinance Bank, another player with a telecom operator as a sister company, is also actively engaged in the nano segment, although its number of borrowers is lower than that of Mobilink Microfinance Bank.

“The idea was that Jazz’s 60 million customers shouldn’t just stay as customers over the phone. They should also be encouraged to turn their phones into bank accounts, ”he told Dawn.

As for the interest rate, Mr Azzam insisted that it should not be seen in annual terms due to its low content. So a four week loan of Rs50 will have a “total fee charged” of Rs12 at a weekly rate of Rs3. This translates into a monthly interest rate of 24pc.

For a loan of Rs 4,400 from the same tenor, the total fee will be Rs 880 charged at a monthly interest rate of 20pc. The annual percentage rate, a measure often used for loans that are repaid in installments, in this case amounts to 261pc.

Mr Azzam dismissed the charge of usurious loan, saying a number of reasons force the industry to issue loans at rates consistently lower than those charged on credit cards by commercial banks. The main reason is that basic microcredit is “absolutely not guaranteed”, he said. Second, the average ticket size is too small, making it time consuming and expensive to process. Most microfinance providers employ a large workforce that brings the total cost of providing services to 15-18% of the average loan amount.

Second, the cost of fundraising for microfinance providers is 8-10 percent, which is “considerably higher” than that of their commercial bank counterparts, he says. This is because microfinance providers mainly operate on a loan model, unlike traditional banks. Barely 15 of Mobilink Microfinance Bank’s 100 branches are “actively mobilizing” deposits, he said, as deposit potential is low in the rural market.

“This is why no microfinance bank makes exorbitant profits,” he said.

Mobilink Microfinance Bank’s net profit in 2020 fell 42.4% year-on-year to 530.3 million rupees – a decline in profitability the CEO attributed to the economic impact of Covid-19.

Going forward, Mr. Azzam expects a massive increase in digital lending. The bank is now targeting hundreds of thousands of merchants who work with large companies like Daraz, Engro and Nestlé for its digital lending products that involve no human interaction.

“These traders have recurring cash flow issues. They are still waiting for payments after orders have been shipped, even if they need to replenish their inventory immediately. We will offer them merchant credit or business financing through digital means, ”he said.

This means that a small merchant will only have to press a button on their phone to organize the repayment of running finances in a matter of weeks or even days. “We are going to make the loan approval and disbursement process as fast as that of a nano-loan,” he said.

Posted in Dawn, The Business and Finance Weekly, September 20, 2021

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Flipkart Partners with Davinta to Offer Credit Facilities to MSMEs and Kiranas Sun, 19 Sep 2021 13:45:14 +0000

Flipkart Wholesale, the digital B2B marketplace of the Flipkart Group, announced on Saturday it has partnered with SME lending platform Davinta to offer a Buy Now, Pay Later (BNPL) credit facility to its retailers .

Adarsh ​​Menon, senior vice president and director of Flipkart Wholesale, said accessing affordable and transparent credit is one of the challenges the company aims to address.

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“The partnership with Davinta will give members of our platform one-click access to credit. The experience for retailers is seamless and fully digital and has only been possible because our two organizations take a focused approach. technology, ”he said in a statement.

As this partnership grows stronger, this construction will allow more and more Kirana and MSME members of Flipkart Wholesale to benefit from accessible and affordable credit as they continue to grow on the platform. he adds.

“Buy Now Pay Later” or BNPL has emerged as a credit innovation from new-age fintechs, which offer this as an alternative to customers who find it difficult to qualify for traditional credit constructs such as credit cards.

With over 6 crores of small businesses in India, the majority of which have difficulty accessing traditional credit, BNPL offers a huge opportunity to foster financial inclusion and provide access to affordable credit that these small business owners have so much needed.

“We are very excited about the opportunity to partner with Flipkart Wholesale and offer our BNPL product to the over 1.5 million members of Flipkart Wholesale,” said Davinta CEO Ravi Garikipati.

He added that with BNPL, the company is now enabling retailers across the country to break free from cash flow constraints while purchasing supplies and enjoying simple one-click access to credit.

Davinta, based in Bengaluru, was founded by former Flipkart CTO Ravi Garikipati and US entrepreneur Raj Vattikuti. The two-year company focuses on microenterprises and its flagship product Vyaapaar Shakti is a BNPL credit facility designed for small retailers.

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Defi TVL climbs higher, use of optimism increases, 270K BTC on ETH, loans on ETH hit $ 44 billion – Defi Bitcoin News Sat, 18 Sep 2021 21:03:06 +0000

As of mid-September, the total locked-in value (TVL) in decentralized finance (challenge) continues to climb, as the value held on Ethereum, Binance Smart Chain, Avalanche, Solana and other blockchains has increased significantly to reach 171 billion dollars today. On the Ethereum network, there are 270,783 bitcoins held in TVL worth over $ 13 billion and $ 15 billion has been traded on 14 different Ethereum-based decentralized exchange (dex) platforms. $ 23.8 billion has been traded between various blockchain protocols, according to a recently released weekly challenge report.

The growth of the challenge remains exponential

A number of crypto assets like Bitcoin (BTC) and ethereum (ETH) have gained in value over the past month, but for the most part crypto-assets like solana (SOL) and avalanche (AVAX) have stolen the show in the past 30 days.

Defi TVL climbs higher, use of optimism increases, 270,000 BTC on ETH, loans on ETH hit $ 44 billion
Across 14 different Ethereum-based dex platforms, there have been $ 15 billion in swaps in the past seven days. Data recorded by Dune Analytics.

Decentralized financing solutions (challenge) continue to grow exponentially and statistics of Dune analysis report that $ 15 billion was traded on 14 Ethereum-based dex platforms. Uniswap captured over 62% of that $ 15 billion in global trade volume by ordering $ 9,620,102,739 in swaps over the past week.

Defi TVL climbs higher, use of optimism increases, 270,000 BTC on ETH, loans on ETH hit $ 44 billion
Statistics from show that Pancakeswap has 5.55 billion TVL and Sushiswap with more channel connectivity has 5.46 billion TVL.

While Uniswap has a lot of volume, the Binance Smart Chain dex Pancakeswap has a TVL of around $ 5.55 billion according to metrics recorded on Saturday. Sushiswap has $ 5.46 billion and it has a lot more connections than the BSC network alone. The total weekly dex trading volume on a number of blockchains according to Coin98 Analytics is $ 23.8 billion.

Defi TVL climbs higher, use of optimism increases, 270,000 BTC on ETH, loans on ETH hit $ 44 billion
Weekly dex metrics by Coin98 Analytics, which leverages data from Debank and Dune.

The metrics show that there is 171 billion dollars in TVL spans a myriad of blockchains. Ethereum still dominates TVL by far, but a number of other chains have risen through the ranks in terms of activity over the past month.

Data from Coin98 Analytics’ last challenge report indicates that the total number of Polygon wallets has exceeded 68.3 million. The results from Coin98 Analytics also show that “Optimism and Arbitrum addresses increased 2 and 6 times, respectively”.

“Although the number of Optimism addresses [has] significantly surpassed that of Arbitrum, last week means a big increase in Arbitrum against optimism, ”Coin98 Analytics said. “Specifically, the total number of arbitration addresses reached 121,000, while the number of optimism addresses fell behind to 103,000,” the report adds.

Over $ 7 billion on bridges, TVL loan on Ethereum reaches $ 44 billion, large amount of Bitcoin mined on Ethereum

Dune Analytics’ Bridge Away (L1 Ethereum) statistics show that there is $ 7.71 billion TVL on Harmony, Near Rainbow Bridge, Optimism ERC20 Bridges, Arbitrum Bridges, Solana Wormhole, Fantom Anyswap Bridge, Polygon ERC20 Bridge and the Avalanche Bridge. On Friday, Project Wormhole announced that its ETH – The SOL token bridge is now live.

Defi TVL climbs higher, use of optimism increases, 270,000 BTC on ETH, loans on ETH hit $ 44 billion
Layer 2 (L2) fee data for September 18, 2021, according to states that an ether transfer using Loopring is $ 0.25, a transfer through Polygon Hermez is also $ 0.25, Zksync is $ 0.27, Arbitrum One costs $ 1.64, and Optimism costs approximately $ 3.06 on Saturdays. Meanwhile, shows that the median fees to send ethereum (ETH) September 18 is over $ 5 per transfer.

Defi TVL climbs higher, use of optimism increases, 270,000 BTC on ETH, loans on ETH hit $ 44 billion
Metrics by Coin98 Analytics, which uses data from Debank and Defillama.

Another interesting statistic for the challenge this week discovered by Coin98 Analytics, is the total value of locked-in loans on Ethereum today is around $ 44 billion. In addition, on seven different bitcoin (BTC) that use the Ethereum network, there are 270,783 bitcoins held in TVL worth over $ 13 billion today.

This measure includes projects such as WBTC, TBTC, SBTC, IMBTC, PBTC, HBTC and RENBTC. 76% of 270,000 bitcoins or $ 13 billion in packaged or synthetic products BTC is used by the Wrapped Bitcoin (BTC) project and its participants.

What do you think of the growing activities linked to the decentralized finance space (challenge)? Are you planning to challenge slow down soon? Let us know what you think of this topic in the comments section below.

Tags in this story

Arbitrum, Avalanche, Binance Smart Chain, BSC, BSC network, Coin98 Analytics, Debank, Decentralized Exchanegs, decentralized finance, DeFi, Defi Blockchains,, DEX, Dex Platforms, Dune Analytics, Ethereum, loan, Optimism, Pancakeswap, Polygon , Solana, Sushiswap, uniswap, bitcoin wrapped

Image credits: Shutterstock, Pixabay, Wiki Commons, Dune Analytics, Coin98 Analytics,,, Coin98 Analytics Defi Report,

Disclaimer: This article is for informational purposes only. This is not a direct offer or the solicitation of an offer to buy or sell, nor a recommendation or endorsement of any product, service or business. does not provide investment, tax, legal or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or allegedly caused by or in connection with the use of or reliance on any content, good or service mentioned in this article.

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Cheapest two-year fixed rate mortgage in UK launched Sat, 18 Sep 2021 08:20:07 +0000

Mortgage Updates

Competition in the UK mortgage market picked up speed on Friday as the Co-operative Bank launched a record two-year fixed rate contract, with an interest rate of 0.79%.

The deal from Platform, a branch of the cooperative that lends through mortgage brokers, follows a series of rate cuts from lenders, with several now offering two-year fixed rate deals of less than 1%.

The platform’s 0.79% rate is limited to borrowers looking for a loan of no more than 60% of the property’s value and comes with a relatively high fee of £ 1,499. The lender also offers a 0.84% ​​deal at a lower fee of £ 999.

Mark Harris, Managing Director of mortgage broker SPF Private Clients, said: “We say that the rates cannot go down for about three years and yet they keep going down. It is funded by clearing banks, which have billions in cash and are looking to lend. “

Fees are an important factor for borrowers to consider, in addition to the initial patch rate, he added. “A lower rate and higher fees tend to be better for large loans and up to £ 2million can be borrowed here,” he said.

Eleanor Williams, financial expert at Moneyfacts, said banks were lowering prices as the UK remained in a low interest rate environment. The base rate of the Bank of England has been 0.1% since March 2020.

“The fixed rate war continues in earnest in the residential mortgage industry, fueling the decline in average fixed rates as the majority of vendor product updates this week contain at least some initial rate cuts,” a- she declared.

HSBC, Royal Bank of Scotland, Nationwide, NatWest, Barclays, Virgin Money and Leeds Building Society are among the lenders to cut rates on mortgage products this week.

Remortgage activity has intensified as borrowers move toward low rates, with some realizing that high inflation can eventually lead to higher interest rates. Chris Sykes, a consultant with mortgage broker Private Finance, said some clients have broken existing agreements – paying an early redemption fee to do so – to secure a long-term deal at current rates.

“It might make sense to pay a 1% early redemption fee if you can lock yourself into a five-year fix at a rate that will save you 0.3-0.4% per annum,” he said. declared. “People want this security. “

Banks have also reopened their doors to borrowers with complex or atypical finances, such as the self-employed or those whose income comes from variable bonuses or commissions.

Harris said it was understandable that lenders shut down these loans at the height of the pandemic because its economic consequences were unknown. “But a lot of people haven’t been affected financially. Banks are realizing that the big hitters make as much money as they always have. “

The resurgence of trail rate mortgages – which follow a base rate – is yet another sign of increased competition in the mortgage market. The number of tracking products nearly doubled from 96 in March of this year to 176 this week, according to Moneyfacts.

Aaron Strutt, product manager at brokerage Trinity Financial, gives the example of a 0.85% two-year tracker with Barclays, for a fee of £ 999. “Tracking rates were all but gone not that long ago, but they’re back and particularly cheap. “

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To the. Judge Sends Loan Action Against Tribal Co. to Arbitration Sat, 18 Sep 2021 01:12:00 +0000
By Andrew Westney (September 17, 2021, 9:12 p.m. EDT) – An Alabama federal judge has referred to arbitration a woman’s proposed class action claiming that a company owned by the Oglala Sioux tribe charged excessive interest for online loans, claiming that his own victory against the company did not allow him to pursue his broader claims in federal court.

U.S. District Chief Justice Kristi K. DuBose, in an order, on Thursday approved an American Arbitration Association panel ruling that Alabama resident Lillian Easley’s loan contracts with the company WLCC II, which operates as the online lender Arrowhead Advance, were void.

But Judge DuBose rejected Easley’s offer to file claims for a proposed class of Alabama loan clients who …

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Uganda: lending rates drop to 16.28% Fri, 17 Sep 2021 11:15:15 +0000

Commercial bank lending rates denominated in shillings continued on a downward trajectory in July, falling to a weighted average of 16.28% from 17% in June.

According to the finance ministry’s report on the performance of the economy for the period ending in July, the move is partly due to a decrease in the ratio of non-performing loans to total gross loans of 5.4% in March. to 4.8% in June 2021..

They noted that the decline in the ratio of non-performing loans reflects a decrease in the risk of default, hence a reduction in the risk premium, which fuels the interest rate of commercial banks.

Likewise, during the period, according to the report, lending rates denominated in foreign currencies declined from a weighted average of 6.03 percent to 5.44 percent during the same period.

The general decline, the report notes, is also due to the accommodative monetary policy of the Bank of Uganda, which aims to support the resumption of economic growth as well as boost access to private sector credit.

Banking of Uganda has since April cut the central bank rate, which currently stands at 6.5%.

However, the private sector response has remained sluggish as some commercial banks continue to react with caution.

For example, during the period, outstanding loans to the private sector increased slightly by 1.3 percent to reach Shs 18,415 trillion in July, compared to Shs 18,187 trillion in June.

However, the report noted that while growth was lower than the 2.2 percent recorded in June, it was well above the average growth of -0.1 percent recorded from January to May.

In terms of credit extensions, the report noted that the value of loans approved in July had declined to Shs 661.39 billion from Shs 773.79 billion in June.

The bulk of the advances, the report notes, went to personal and household loans, which took up 28.7 percent, followed by trade (19.3 percent), manufacturing (13.8 percent) and agriculture (13.5 percent).

Construction credit declined by more than 50 percent, which is consistent with the reduction in growth in the construction sector.

highlighted by the purchasing managers index.

However, the report noted that despite the reduction in lending rates and non-performing loans, the extension of credit remains moderate due to the risk of default.

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