| Quarter point hike is speculated next month
/24-7PressRelease/ - LONDON, UK, March 17, 2007 - According to financial analysts, the Bank of England has not raised the base rates this time, but it could make the hike in the month of April. There is a prediction that a quarter point hike can be there in the base rate. The Bank of England has not raised the interest rates in spite of the booming economy, rising house prices, and the inflation being above the target. The analysts expect that the interest rates may go up to 5.5 %, and it may again fall down from the fourth quarter of 2007. If there is a hike in the interest rates, then the personal loan borrowers will have to face the heat. But, even if there is a hike in the next month, the borrowers don't have to worry as they can expect a relief in the interest rates by the end of this year.
Now you know the score Now you know the score
Read a book on business startups or visit the small-biz portion of any bank website and you'll find a trove of financial and managerial advice. But you won't find out what I learned in a casual chat with a banker last year. In the real world of automated loan approvals, he said, your business plan counts for zip. What really matters in determining whether you get the bank loan you need is your personal credit rating. "One of the great myths about banking," said the banker, "is that we won't talk to you unless you have a five-pound business plan." In reality, the banks are more interested in seeing how you've run your personal finances. They figure there's a better chance of you repaying your business loan every month if you have a positive personal credit record than if you have a surefire formula for turning seawater into gold.
Interest rates on the up: your next move?
The interest rates on personal loans and home loans have shot through the roof. People have no idea whether to go in for personal loans or not. In the last four months, the interest rates on personal loans have gone up 2% to 2.5%. This translates into an increase of Rs 150 in your equated monthly installment (EMI). The impact has hit entitlement of the loan, too, which has come down by 5%-10%. Earlier, you could get a loan of up to Rs 5 lakh if you were earning Rs 20,000 per month. Now, the same salary gets you Rs 4.5 lakh. Rajiv Jamkhedkar, Business Manager, Citibusiness, Citibank, gives you tips on what to do next. EXCERPTS FROM AN INTERVIEW WITH CNBC-AAWAZ Are people going in for personal loans? What is the trend? A lot of people are going for personal loans, which has seen 30% growth in the last two years.
How to Build a Better Credit Rating
If you've ever applied for a credit card, a personal loan, or insurance, there's a file about you. This file is known as your credit report. It is chock full of information on where you live, how you pay your bills, and whether you've been sued, arrested, or filed for bankruptcy. Consumer reporting companies sell the information in your report to creditors, insurers, employers, and other businesses with a legitimate need for it. They use the information to evaluate your applications for credit, insurance, employment, or a lease. Having a good credit report means it will be easier for you to get loans and lower interest rates. Lower interest rates usually translate into smaller monthly payments. Nevertheless, newspapers, radio, TV, and the Internet are filled with ads for companies and services that promise to erase accurate negative information in your credit report in exchange for a fee.
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