Tag Archives: term
The Demands For Payday Loans Are On Rise Due To Tightening Economy
Another year is reaching its end, the recession is still biting and thousands of people are flocking to several local or short term loans. It is done in a frequent manner and the majority believes in tiding up to the coming payday.
According to the revealed data the larger chunk of U K’s population are turning to short term loans charging interest of more than 1,000 per cent to tide them over until they get paid. The number of consumers heading for the payday loans had doubled up in the past ten months as people are struggling with their household and monthly bills.
What are payday loans?
Payday loans are also known as fast and easy loans which follows a quick and easy way to attain monetary assistance at the time of an emergency. As in there are many times when financial uncertainties such as pending bills, medical urgency etc. pops up within a second and the borrower is left with no answer. Therefore, keeping such circumstances in mind, urgent payments can be done by using this type of loan as this is the most effective way of funding one’s needs.
These loans are known as a short term loan which are offered to those people who do have a regular source of income but need an urgent cash before their payday. The loan amount is usually paid back in full, certainly the moment borrower receives his/her paycheck.
Issues Triggering the Importance of Payday Loan
According to the figures released by the Money super market, the number of deals for payday loans, obtained by consumers in UK has shown a great spike more than 130 percent as compared to the previous data.
The growing strain over consumers’ wallets are basically due to soaring fuel prices and food prices that has certainly increased the business of lenders providing short term loans at high interest rates.
However, as the rise in inflation is making every single thing expensive except money so people are also struggling to meet their daily requirements.
The ongoing credit crunch are pushing the majority to go for financial support from financial sector which is already under stress with the rising competition.
All these heating up issues basically which are blamed for the exacerbating the house crisis are increasing the popularity of payday loan in UK.
However, these loans are available to those people who are in full time working and and earn more than £750 per month.
Following Terms and Conditions
Nevertheless, even though payday loans are followed by certain terms and conditions, the number of deals taken out are still one a great rise. The following pre requisites are as follows:
- The applicant must be at least 18 years of age or above.
- Should be the domiciled of UK.
- Should have a regular source of income and should hold a minimum salary of £750 per month and
- Should have an active account and a debit card for this service.
Therefore, after holding all these qualifications the borrower is entitled to attain the service of this loan.
The loan amount provided by payday loans generally ranges between £80 and £1,000. The facility of this loans can also be benefited by those people who tend to hold quite poor credit profile as this loan does not demand any credit verification.
However, it is followed by a repayment schedule and is termed to be completed within 2 to 4 weeks that is within the period of 14 to 31 days.
Therefore, these loans are the best option of attaining quick cash advances for salaried people.
Stock Loans FAQs, Asset Based Loan, Securities Loan (Page 1 of 3)
F.A.Q. Stock Loans and Asset Based Loans
What is a Stock Loan?
Non-Recourse Stock Loans by definition is a loan against the value of a stock or portfolio of stocks whereby the shareholder (OWNER) can borrow up to 80% of the stock value (in some cases higher) of the portfolios market value “without selling the shares”. Like a home equity loan for stocks but much better. You borrow against the appraised value of the portfolio and pay a below prime interest rate for the term of the loan. And then at term end you either pay off the loan and receive your stock back with any stock appreciation, refinance the loan, or if the stock price has fallen below the LTV amount, forfeit the shares without paying back the loan (non-recourse) with no liability or effect on your credit rating.
What stocks are eligible for a Stock Loan?
Any publicly traded security are eligible. Stocks, bonds, mutual funds, ETF’s (exchange-traded fund), ADR’s (American Depositary Receipt), Penny Stocks (stocks on the pink sheets or bulletin board stock), Foreign Stocks and Bonds are ALL eligible. Typically, we look for a minimum $50,000 daily trading volume for each publicly traded stock.
Am I personally liable for this loan?” or “Can the company come after me on this loan if I do not make payments?
NO, this is a “non-recourse” loan; the lender cannot come after you personally. There is NO personal liability associated with the stock loan. The only security for the loan is the stock and the only recourse the lender has is against the stock. You have NO personal liability exposure.
Is the loan reported to the credit bureaus or reporting services?
NO, the Securities loan is not reported to the credit bureaus and there is NO public record of this loan. Even if you elect to walk away from the loan and default because, for example, you have more money then the stock is worth, it is NOT reported.
Are non-U.S. securities allowed to be used as collateral in stock loan transactions?
Yes. Some non-U.S. securities are allowed to be put up as collateral. Some of the other countries include Canada, UK, European countries, Japan, Israel, Australia, India, and Korea, to name just a few.
What are the Loan to Value (LTV) percentages for the loans?
The LTVÃÆââââ¬Å¡Ã¬Ã¢ââ¬Å¾Ã¢s vary depending on the quality of the securities being collateralized. With high quality large cap stocks you can expect LTVs up to 80% (sometimes higher) while with small cap or pink sheet (penny stocks) securities the LTVÃÆââââ¬Å¡Ã¬Ã¢ââ¬Å¾Ã¢s will be more conservative and lower. This means it can be as high as 80% LTV but can be Lower. It depends upon the quality and type of security owned. Each loan is evaluated on a case-by-case basis. The highest LTVs are offered to high quality securities such as Blue Chip stocks.
How are the stocks evaluated?
Stability, trading volume and share price are factors in determining the interest rate, term and Loan to Value. Good stocks, like good investments, always get the best terms. Typically, we look for a minimum $50,000 daily trading volume for each publicly traded stock. The most attractive interest rates and terms and conditions are available to those stocks with good strong and steady volume and price, and low volatility. Prices over $5/share typically get best prices as long as volatility is low and volume is strong and steady. Strong and steady volume is highly prized as it allows some predictability. The leading indicators when determining the eligibility of a stock as collateral are going to be exchange, volatility, share price, liquidity, trends, filings, short term trading volume and long term trading volume.