Friday, November 29, 2013

How can a loan or an unsecured loan

How can a loan or unsecured loan . How can I do for loans without collateral or a guarantee ? Here are some tips for you to bank approval .

1 . Determine First Bank , of course .
You have to decide which banks will be presented offering unsecured loans . Each bank may differ depending on the demand for credit and the credit limit granted . It is therefore essential that banking requirements . In accordance with your wishes and credit limit .

2 . You have more support if you have a credit card
It will be easier for banks to approve loans without collateral , you might ask , if you already have a credit card . Because the bank can control the extent of your credit history . Also make sure that your credit card bill for the good . Minimum credit card must be at least one year .

3 Prepare the Terms and Conditions
Prepare documents required for loans without collateral applied by banks . The term requirements as a bank loan without collateral standards such as photocopies of your card , copy of credit card , copy of tax identification number , salary slips ( if used ) , or a photocopy of business license ( if a company) . Oh yes , you must have a phone number for the presentation of the unsecured loans . In general , the bank then contact you by telephone to your home .

4 Be sure to come to the bank or online
Go to the bank to ask the purpose of the loan is unsecured loans . Fill in the form and the necessary requirements . By filling out the form , the actual data . Fill Or you can try online loans unsecured loans apply . Currently , many banks offer all the facilities without collateral credit loan presentations over the Internet .

5 Confirmation
When you use an unsecured loan facility online , after entering through an online form that loans unsecured loans should confirm to the bank . The goal is to complete the loan without collateral for the application process .

6 Assessment and Research
Banks warn and control . Interviews can be conducted in person or over the phone . Examined the requirements for filing equipment checks unsecured loans . The bank will then survey for your home or office . Because there is a phone number that you should be in good shape should always be active .

7 Waiting for news
Waiting for good news from the bank . This will tell you whether the planned loan unsecured loans approved . If approved , then you can expect to membayar.Ini is the process of loan application unsecured loans . Want to try ?

Advantages and Disadvantages of Unsecured Loans

These loans do not require collateral assets to be used when we want to apply for these loans at financial institutions . Then how financial institutions decide whether we deserve this loan or not ? Of course financial institutions not directly give us a loan when we came . They will ask for various documents so that they could learn whether indeed we are eligible to receive the loan or not .

What is seen financial institutions before giving us a loan ? Financial institutions will grant credit after seeing

    Credit history of pemihin personally
    Savings and assets

It is studied by Financial Institutions to see if we are able to carry out our obligations to them . Obligations that we have after getting the loan is paid back the loan . So in lieu of bail , they will check both of the above .

Advantages of Unsecured Loans

    Loans liquid fast ( fast loans granted ) as the process was shorter than the other loans that require collateral
    The requested document was not seribet loans with collateral
    Loans can be used for primary , secondary or business in accordance with the will of our
    Not required collateral asset whether it be home , important papers or other valuables
    Nyicil system returns a process where we have to return the borrowed money along with interest in accordance with the provisions in force in the place where we borrow
    Some Institutions kuangan release or lowering administrative costs to be paid by us as a borrower

Disadvantages of Unsecured Loans

    There is a limit on the borrowing because there is no need assurance that the financial institutions that lend bold just not too big
    The deadline is very short usually a maximum of five to seven years when compared to other credit
    Interest of the unsecured loans can be fairly large when compared to other loan services from Financial Institutions

Tuesday, November 5, 2013

European Growth Map 2014

Here is a slide from a presentation used this morning by Olli Rehn when introducing the Commission’s Autumn 2013 Economic Forecast.

EC European Growth Map

The north/south divide is strong with this one.

Friday, November 1, 2013

DoF Mortgage Arrears Release

Yesterday, the Department of Finance published the first in a new set of monthly mortgage arrears and restructures figures.  Hopefully, the series will be expanded because the first issue contains almost nothing that is new and also has some errors.

The errors don’t relate to the arrears figure but to the comparison between the number of houses in the country and the number of mortgage accounts.  This is shown in the ‘key highlights’ (click to enlarge):

Mortgage Restructures

The left panel of the middle section indicates 700,000 of the 1.9 million houses in the Ireland have “mortgages covered under MART”.   This is not correct.  Yes, there are nearly 2 million housing units in Ireland, as was measured with Census 2011:

Status of Occupancy

However, the number of units with a mortgage is not the same as the number of mortgage accounts.  A separate measure in the Census showed that of the 1.65 million units occupied by the usual residents that  just over 580,000 were owner-occupiers with a mortgage.

Nature of Occupancy

The 699,674 used in the DoF release would only be appropriate if the relation between mortgage accounts and houses was 1:1. It is not.  There are many household who have more than one mortgage account on the principal dwelling house (PHD).  This can be because of top-ups, remortgages or splitting a mortgage between different interest rate types. 

Previous work by the Central Bank has shown that the ratio of mortgage accounts to PDHs is around 1.27:1.  Therefore the 699,674 mortgage accounts in the MART corresponds to roughly 550,000 houses/households.  This means 27.6% of houses in Ireland have “mortgages covered under MART” not 35%.

The figures on mortgage restructures add little to what is already known from the quarterly figures published by the Financial Regulators office.  There is a breakdown of “permanent” versus “temporary” but this is broadly known from the type of restructure used.  It would be useful if this breakdown was further distilled into those accounts which are in arrears and those accounts which are not.

It would be even more useful if the success rates of the restructures were published, i.e. whether the borrowers are meeting the terms of the restructures.  The figures from the FR indicate that 76% of the restructures are being adhered to but we do not know which restructures this applies to.

The fact the 75% of mortgages in 90 day arrears or more have not been restructured is not news but it did make the front pages of today’s Irish Examiner (image) and The Irish Times (image).

Most mortgages 90 days in arrears not restructured

Three-quarters of mortgages over three months in arrears at Ireland’s six main lenders have yet to be restructured, figures from the Department of Finance show.

Banks failing to tackle mortgage arrears

Three in four home loans in long-term arrears are not being restructured by the banks despite lenders having a range of mortgage solutions to offer borrowers.

The data shows 62,210 of these long-term arrears mortgages were not restructured, while solutions were agreed for just 20,424 loans.

It is very unlikely that all loans in arrears will, or even can, be restructured.  It is possible that a borrower who has historical arrears may now be back “on track” and hence a restructuring is unnecessary.  This highlights another shortcoming with the arrears data – they do not tell us whether a borrower is accumulating arrears now.  A measure of the number of accounts in arrears now, or even better, a measure of the number that are currently covering the interest on their loans would be very very useful.

It is also the case that there are many loans where a restructuring is just not possible.  For example, Ulster Bank have said that 35% of their customers who are in 90 day arrears are either not engaging or are not paying anything towards their mortgage.  It is nearly impossible to put a restructure in place in such circumstances.

It is also worth noting that a further 50,672 mortgages which are not in arrears have also been restructured.  This could be because any arrears has been repaid or recapitalised or because the restructure stopped the mortgage falling into arrears in the first place.  In total 71,086 mortgages in the sample have been restructured which is a lot of activity.

Finally, the data in this release represents 90% of all mortgage accounts in Ireland.  In this sample, 82,824 out 699,674 accounts were in 90 day arrears at the end of August.  That is 11.7% of mortgage accounts in the sample.

The most recent data from the FR for the entire mortgage market is for the end of June.  At that time, 12.7% of all mortgage accounts were in arrears of 90 days or more.  That means the tenth of mortgages that are in institutions outside the MART process have an arrears rate of 21.5% – nearly double the rate of arrears of those in the DoF sample.  The lenders here include INBS, BoSI, Start, Danske and although they are smaller than the other lenders in proportionate terms their arrears rates are far worse.

Tuesday, October 29, 2013

Retail sales get stuck

The CSO have published the September update of the Retail Sales Index.  Excluding the motor trades, the volume index was unchanged in the month with the value index showing a slight decline.  The increases seen during the sunny summer have not been sustained into the autumn.

Ex Motor Trades Index to Sep 2013

In annual terms, the 2013 figures are now coming up against the short-lived increase that occurred from June to October 2012 (in part driven by the digital switchover for television signals).  This has brought the annual change back towards zero and negative annual changes are likely for the next few months.

Annual Change Ex Motor Trade Index to Sep 2013

A continued drop in the value series will have consequences for VAT receipts.  Finally here are the monthly changes in both series.

Monthly Change Ex Motor Trade Index to Sep 2013

Monday, October 28, 2013

Loans to Customers in the Covered Banks

A recent post looked at the state of the banks and in aggregate showed that the “Irish-headquartered banks” (AIB, BOI and PTSB) had €214 billion of loans to customers against which they had made €28 billion of provisions giving the €186 billion balance-sheet value for their loan books. 

The following table provides some insight by bank, sector and country on the aggregate figures looked at earlier.

Loans to Customers

It can be seen that about a quarter of the loans the banks have are in the UK, and these loans are performing much better than those in Ireland.  The NPL rate in the UK is around 7% (€4 billion out of €55 billion) while the NPL rate in Ireland is around 33% (€54 billion out of €159 billion).  It should be noted that the banks use slightly different definitions of non-performing or impaired loans.

How large will the ultimate losses on these loans be?  Impossible to say.  What we can say is that the covered banks have a lending exposure in Ireland of around €160 billion.  Of this nearly €60 billion is already impaired and the banks have made provisions for an average loss rate of around 50% on those loans.  That seems conservative but there may be losses above that (and also the amount of NPLs continues to rise).

For example, AIB is still carrying a €18 billion exposure to land, property and construction related lending in Ireland. Only €3.2 billion of that is rated as “satisfactory” with €13.1 billion impaired.  AIB also has €11 billion of non-property SME lending but this is similarly tied to property through hotels, pubs and other trading premises. 

Of the €16.5 billion of provisions AIB has against its loans, €7.8 billion are for loans to the property and construction sector while €3.3 billion are for non-property SME lending.  One concern may be that these are not large enough and another is that AIB may not have made sufficient provisions against other parts of its loan book, particularly Irish mortgages.

PTSB have also made provision of about 50% against their NPLs but the main problem there is the €14.3 billion of Irish and €6.5 billion of UK “tracker” rate mortgages it has.  This are a huge drag on any return to sustainable operating profitability though.

In general though, there does not seem to too many skeletons left to unearth in the loan books of the covered banks.  The ECB stress test will see some digging around but it is hard to see anything new been unearthed. Dealing with the nearly €60 billion of non-performing loans we can see are problems enough.

Wednesday, October 23, 2013

Alcohol Prices – Ireland is 2nd highest in EU

A minimum price for alcohol in Ireland remains on the agenda (though it’s legality is still uncertain).  Data from Eurostat show that Ireland already has the second highest price for alcohol in the EU – at more the 60% higher than the EU average.

Alcohol prices

The latest data from Eurostat is for 2012 and is available here.

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