Collateral – Stan Smith Loans http://stansmithloans.com/ Thu, 16 Sep 2021 20:24:23 +0000 en-US hourly 1 https://wordpress.org/?v=5.8.1 https://stansmithloans.com/wp-content/uploads/2021/07/favicon-23.png Collateral – Stan Smith Loans http://stansmithloans.com/ 32 32 The cell phone becomes a guarantee for applying for a loan; see how it works – The Clare People https://stansmithloans.com/the-cell-phone-becomes-a-guarantee-for-applying-for-a-loan-see-how-it-works-the-clare-people/ https://stansmithloans.com/the-cell-phone-becomes-a-guarantee-for-applying-for-a-loan-see-how-it-works-the-clare-people/#respond Thu, 16 Sep 2021 20:24:23 +0000 https://stansmithloans.com/the-cell-phone-becomes-a-guarantee-for-applying-for-a-loan-see-how-it-works-the-clare-people/ Some people end up in need of borrowing in times of financial crisis, but the person does not always have enough assets to justify the request. Recently, companies in the sector have started offering the customer’s personal cell phone as collateral to offer a loan. How to make a loan with Nubank 18 tips to […]]]>

Some people end up in need of borrowing in times of financial crisis, but the person does not always have enough assets to justify the request. Recently, companies in the sector have started offering the customer’s personal cell phone as collateral to offer a loan.

  • How to make a loan with Nubank
  • 18 tips to avoid scams when looking for a loan online
  • Procon-SP fines C6 bank for granting unsolicited loans to account holders

According to a survey carried out in July by FinanZero, one of the companies in the field, interest in Google in lending smartphones as collateral increased by 500% from January to July of this year, compared to the same period in 503,175 The demand is justifiable, because almost every Brazilian now owns a smartphone: there are 55 million, to be more precise, according to the Getúlio Vargas Foundation. So when the going gets tough it can be a part of helping you get the extra cash.

Who offers the loan?

SuperSim provides this service under certain conditions, such as being over 12 years old, having your own checking account and having a device with Internet access. It lends independently, but also with partners such as Serasa eCred or FinanZero itself. In the latter, the requirements increase a little: you must be over 18 and have a minimum income of a minimum wage (1.47 BRL), in addition to the bank account.

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How much does the loan pay by cell phone?

The amounts obtained on the loan may also change. In Serasa eCred, they range from R $ 400 to R $ 2,500, with payment in 18 installments. SuperSim pays from BRL 380 to BRL 2,600. FinanZero and another company, Bom Pra Crédito, release much larger amounts, R $ 10,000 or more, depending on the client’s income. Either way, the customer suggests how much they want and there will be a business scan to close the quote.

Can you use any cell phone as loan collateral?

Not. These are usually Android phones. Some companies specify even more: Samsung models only.

What happens to the cell phone?

The company approving the loan asks the customer to install their own application. In the event of a fault, the mobile phone will be blocked, with access only to emergency calls. After payment of the installment debt, the cell phone is automatically unlocked.

Image: Julia M. Cameron / Pexels

It depends on the company. At Bom Pra Crédito, it is not possible for a customer in debt on the market to get money. At Serasa or FinanZero, yes. But it’s worth remembering: it’s important that you analyze your current financial situation so that you don’t get into debt that you won’t be able to pay later.


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Unsecured personal loans: no collateral required https://stansmithloans.com/unsecured-personal-loans-no-collateral-required/ https://stansmithloans.com/unsecured-personal-loans-no-collateral-required/#respond Wed, 25 Aug 2021 07:00:00 +0000 https://stansmithloans.com/unsecured-personal-loans-no-collateral-required/ Unsecured personal loans are one of the most sought after types of loans for consumers in need of funds for debt consolidation, unexpected expenses etc. This type of loan is considered an installment loan. This means that you will be allowed to repay the borrowed money with interest in the form of fixed monthly payments […]]]>

Unsecured personal loans are one of the most sought after types of loans for consumers in need of funds for debt consolidation, unexpected expenses etc. This type of loan is considered an installment loan. This means that you will be allowed to repay the borrowed money with interest in the form of fixed monthly payments for a specified period.

Unlike other types of loans, such as home loans and auto loans, unsecured personal loans do not require the item that you purchase as collateral. Lenders depend on your creditworthiness to determine if you can repay it. The higher your credit score, the more likely you are to get approved for an unsecured personal loan.

Does the lack of collateral requirement mean that you can easily default on the loan?

An unsecured personal loan does not require any collateral. However, that doesn’t mean that the lender has no way of getting their money back if you start to default on the loan. They can either file your account with a collection agency, attempt to take over your property, or file a lawsuit to have your wages garnished.

How to qualify for an unsecured personal loan

According to Creditninja’s guide, lenders want to make sure that you can pay off the loan on time as agreed. As a result, they assess different factors to determine the risk of lending you money. Some of these factors include:

Credit score

Credit scores typically range from 300 to 850. This rating range is a tool that lenders use to describe a borrower’s creditworthiness. In addition, it is based on your credit history: total debts, quantity of accounts opened, repayment history, etc.

Below is the range of FICO scores that most financial institutions use to gauge the likelihood that you will pay off the loan on time:

  • 800 to 850 = Excellent
  • 740 to 799 = Very good
  • 670 to 739 = Good
  • 580 to 669 = Medium
  • 300 to 579 = Bad

As mentioned earlier, people with excellent credit scores are often eligible for unsecured personal loans of high amount and low interest rates. Therefore, if you currently have a bad credit rating, it would be best to improve it before applying for an unsecured personal loan.

Returned

Having a stable income is a plus when applying for an unsecured personal loan. Lenders will assess your financial situation by seeing if you are earning enough money to fully repay the amount you borrowed. If you have multiple sources of income, this can also be a big advantage.

Debt-to-income ratio

This ratio compares your monthly income and your current debts. Lenders use the debt-to-income ratio to find out if you can accept another loan with your current debt. A low debt-to-debt ratio means a better chance of getting your loan application approved.

Advantages and disadvantages of obtaining an unsecured personal loan

Here are the pros and cons that you might want to know about when it comes to getting an unsecured personal loan:

Advantages

  • Unsecured personal loans can allow you to get the loan amount faster than with a secured loan, which may require you to submit additional requirements, such as proof of car ownership.
  • Borrowers with a good credit score (720 to 850 on the FICO credit score range) could benefit from interest rates as low as they can get on a secured personal loan. Generally, unsecured personal loans tend to have annual percentage rates that start at around 6%.
  • Unlike what happens in secured personal loans, the lender cannot repossess your property in the event of default.

The inconvenients

  • Unsecured personal loans tend to be riskier for lenders. This is why most of the lenders tend to offer this type of loan with higher interest rates than the rates that you get with secured personal loans.
  • If you don’t repay the loan, your credit score will suffer. The remaining loan balance can be sent to a debt collection agency. This causes collection calls from a certain company. Also, you could be sued to collect the debt.

Where Can You Get Unsecured Personal Loans?

You can get unsecured personal loans from many different lenders. You can choose to get it from a bank, a credit union, or even an online lender. However, you should keep in mind that each type of lender comes with its own set of pros and cons, interest rates, terms, fees, and loan amounts.

Since many lenders tend to offer unsecured personal loans, it would be best to compare them to find out which one can provide you with what you really need. When it comes to shopping, consider the monthly payment and interest rates.

In a word

Unsecured personal loans can be a great option if you want quick cash. You don’t need to present collateral to the lender just for your loan application to be approved. Not only that, but your assets will not be exposed to any risk of foreclosure if you do not pay back the loan.


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Vodafone Idea lenders demand additional collateral on existing loans, Telecom News, ET Telecom https://stansmithloans.com/vodafone-idea-lenders-demand-additional-collateral-on-existing-loans-telecom-news-et-telecom/ https://stansmithloans.com/vodafone-idea-lenders-demand-additional-collateral-on-existing-loans-telecom-news-et-telecom/#respond Thu, 19 Aug 2021 07:00:00 +0000 https://stansmithloans.com/vodafone-idea-lenders-demand-additional-collateral-on-existing-loans-telecom-news-et-telecom/ Mumbai: Vodafone Idea’s lenders have asked the cash-strapped phone company to provide additional collateral and security on existing facilities as well as higher interest rates on loans. Banks are also considering the need for telecommunications operators for additional bank guarantees to be provided to the telecommunications department. “Lenders are worried about the recent downgrade of […]]]>
Mumbai: Vodafone Idea’s lenders have asked the cash-strapped phone company to provide additional collateral and security on existing facilities as well as higher interest rates on loans. Banks are also considering the need for telecommunications operators for additional bank guarantees to be provided to the telecommunications department.

“Lenders are worried about the recent downgrade of the phone company and are looking to change the covenants on loans with higher interest rates and to supplement the margin and security of existing facilities,” said a manager of the bank who did not wish to be named.

India’s third-largest telecommunications company recently informed the Supreme Court that it has “exceptional used facilities” of around Rs 47,000 crore from banks, non-bank financial companies and mutual funds, in more of its arrears to the Ministry of Telecommunications (DoT). These included Rs 25,000 crore taken from public sector banks.

The petition was against the higher court order that ignored the company’s request to ask the DoT to review “errors” in calculating its Adjusted Gross Income (AGR) contributions.

The ailing telecommunications company is also in talks with lenders to provide additional bank guarantees (BG) worth Rs 980 crore so that it can benefit from a moratorium on spectrum payments, another said. responsible for the bank.

Vi had written to the ministry in June asking for an extended moratorium and ET reported that the government was working on an aid plan that would likely include a moratorium on payments.

“Vi will need BG if he wants to ask for the moratorium and that is why they are talking to the banks,” a government official said.

However, lenders have yet to give the green light. In fact, in a recent meeting with DoT officials, the lenders said converting debt to equity in the telecommunications company was an option for them. However, the carrier has yet to default on payment.

Vi and its lenders did not respond to questions from ET until press time on Wednesday.

For banks exposed to the telecoms sector, Vi, if not saved, will become the third operator to go bankrupt after Reliance Communications and Aircel.

The State Bank of India, for example, has an exposure of around Rs 11,000 crore to the telephone company.

Vi said the group’s total debt stands at Rs 191,588.8 crore including the next tranche of AGR debt – around Rs 9,000 crore – and a debt amounting to Rs 16,853.4 crore is payable over the next 12 months.

“Said going concern assumption depends essentially on its ability to raise additional funds … and the clarity of the amount of the next payment, the acceptance of its deferral request by the DoT and the generation of cash flow from its operations which he needs to settle / renew his debts / guarantees as they fall due, ”Vi said last Saturday after reporting a loss of Rs 7,312.9 crore for the first fiscal quarter.

The downgrade of the telephone company is an additional concern. CARE Ratings recently downgraded the company to B-minus and kept it on credit watch with negative implications.

Vi has pointed out his viability issues and it depends a lot on the combination of the success of the telephone company in raising Rs 25,000 crore as he proposed, the government’s back-up plan and the relief from SC on the question of calculating the AGR.

“A capital increase or government back-up plan remains essential to provide immediate liquidity support to service the net debt up to Rs 1.9 lakh crore,” said a memo released by Motilal Oswal.

The telecommunications company’s survival issue became central when Kumar Mangalam Birla resigned earlier this month from the board of directors of the company, a joint venture between his group Aditya Birla and UK group Vodafone. The move came less than two months after he wrote to the government proposing to sell the group’s stake in Vi to any public sector or national financial entity that could keep the company afloat.

On Saturday, cash-strapped Vi’s June quarter losses widened to Rs 7,312.9 crore, from Rs 6,985.1 crore in the previous three-month period, due to a mixture of higher interest costs and heavy customer losses.


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Back to Basics, Continued — Electronic Contracts as Guarantee! | Dentons https://stansmithloans.com/back-to-basics-continued-electronic-contracts-as-guarantee-dentons/ https://stansmithloans.com/back-to-basics-continued-electronic-contracts-as-guarantee-dentons/#respond Tue, 17 Aug 2021 18:05:25 +0000 https://stansmithloans.com/back-to-basics-continued-electronic-contracts-as-guarantee-dentons/ Last week I wrote about taking consumer loan promissory notes and installment sales contracts in electronic format. See here. This week I discuss the implications of such electronic contracts serving as collateral for lenders to consumer credit companies and installment sellers. Let’s get started. Electronic contracts constitute “movable papers” under the Uniform Commercial Code (UCC); […]]]>

Last week I wrote about taking consumer loan promissory notes and installment sales contracts in electronic format. See here. This week I discuss the implications of such electronic contracts serving as collateral for lenders to consumer credit companies and installment sellers.

Let’s get started.

Electronic contracts constitute “movable papers” under the Uniform Commercial Code (UCC); and, the UCC allows the movable papers to be a guarantee to guarantee the repayment of the debt. Thus, just as finance companies and credit sellers often take collateral on consumer goods to secure the repayment of their consumers / customers, so lenders of finance companies and credit sellers take collateral on notes and installment sales contracts to help secure repayment. of loans to their borrower – the consumer credit company or the credit vendor.

Now comes the fun part.

When the movable paper (the promissory note or the installment sale contract) is tangible, it is quite easy for the lender to either take physical possession of the paper contract or to place a restrictive statement on the paper contract indicating the security of the loan. lender in furniture paper. But what about when there is no tangible paper, when the transaction creating the movable paper is in electronic format?

In this scenario, the concept of “perfection through control” comes into play. Under the UCC, “control” of title to property is required to establish completeness of security for the purposes of Section 9 of the UCC. I wrote about “perfection” in a blog here.

Consequently, the lender to the creditor wants to perfect his interest in movable paper; and it does the same in the electronic format, asking the finance company or the credit vendor to enter into a controlling agreement with a company that agrees to “control” or hold the electronic collateral in a custodial relationship or deposit. This relationship is established by a control agreement. This agreement allows the flexibility that the creditor needs to deal with its customers, while completing the perfection of the security of its lender on the electronic contracts which serve as collateral.

Interestingly, the electronic contract monitoring agreement often refers to the custodian as an “electronic safe provider” and the holding of electronic contracts as being placed in an “electronic safe”.

And, now, you know more about the rest of the story …


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How To Apply For An Unsecured Loan »Financial Watch https://stansmithloans.com/how-to-apply-for-an-unsecured-loan-financial-watch/ https://stansmithloans.com/how-to-apply-for-an-unsecured-loan-financial-watch/#respond Tue, 17 Aug 2021 07:00:00 +0000 https://stansmithloans.com/how-to-apply-for-an-unsecured-loan-financial-watch/ CBN 2021 Loan Application Form: How To Apply For Unsecured Loan: Apply for a CBN AGSMEIS 5% loan of N10 million today. The Agricultural Small and Medium Enterprise Scheme (AGSMEIS) is an initiative of the Central Bank of Nigeria. The CBN AGSMEIS 2020 Loan Application is Currently Ongoing – Apply Here! With the CBN AGSMEIS […]]]>

CBN 2021 Loan Application Form: How To Apply For Unsecured Loan: Apply for a CBN AGSMEIS 5% loan of N10 million today. The Agricultural Small and Medium Enterprise Scheme (AGSMEIS) is an initiative of the Central Bank of Nigeria. The CBN AGSMEIS 2020 Loan Application is Currently Ongoing – Apply Here!

With the CBN AGSMEIS loan, you can access up to N10 million at 5% per annum from the Agric, Small and Medium Enterprises (AGSMEIS) program, an initiative of the Central Bank of Nigeria (CBN); it is without guarantee.

What is the Agricultural Small and Medium Enterprise Scheme (AGSMEIS)?

AGSMEIS is an initiative of the Committee of Bankers with the aim of supporting and complementing the efforts of federal governments to promote agribusiness / small and medium-sized enterprises as a vehicle for sustainable economic development and job creation.

cbn loan

AGSMEIS is a voluntary initiative of the Committee of Bankers approved at its 331st meeting held on February 9, 2017. The program requires all banks in Nigeria to set aside 5% of their after-tax profit (PAT) each year.

The initiative aims to support the efforts and policy measures of the federal government for the promotion of agricultural enterprises and small and medium-sized enterprises (SMEs) as vectors of sustainable economic development and job creation.

Objectives of the Small and Medium-sized Agricultural Enterprises Scheme (AGSMEIS)

cbn
cbn

The objectives of the Plan include:

  • Ensure that small and medium-sized enterprises (SMEs) have access to finance
  • Generate much needed employment opportunities in Nigeria
  • Develop the agricultural value chain and ensure sustainable agricultural practices.
  • To strengthen agribusiness / SME management capacity as pipelines of growing businesses that can grow into huge corporate organizations.

Objectives of the CBN AGSMEIS loan form 2020/2021

MSMEs from the following sectors are eligible:

  • Agricultural companies,
  • Education,
  • Health,
  • Services (Hotel, Catering, Catering, Services, etc.),
  • TIC,
  • Manufacturing / Production,
  • Mining,
  • Creative industry (fashion, design, crafts, entertainment, etc.),
  • etc

CBN AGSMEIS lending activities

Activities covered by the Agricultural Program of the Central Bank of Nigeria, Small and Medium Enterprises, AGSMEIS Loan include;

  • Businesses along the agricultural value chain covering input supply, production, storage, processing, logistics and marketing. MSMEs of the real sector, including manufacturing, mining and petrochemicals.
  • MSMEs in the service sector, including information and communication technologies (ICT) and the creative industry. Other activities which may be determined by the committee of bankers from time to time.
cbn
cbn

AGSMEIS CBN loan eligibility

Now, to access the AGSMEIS loan, certain conditions must be met.

  1. The interested candidate must have been trained by an Entrepreneur Development Institute (EDI)
  2. The interested applicant will apply for a loan via an EDI
  3. The requests will then be sent to CBN for processing.
  4. Candidates will be called for an interview concerning their company.
  5. Qualified people will be contacted and receive the loan.
  6. Clearly fill out the new form with all the required details, sign and have them authenticated by EDC – http://www.edcsouthwest.org/

To note: The maximum loan is 10 million; The interest rate is 5% per year; The tenor is 7 years old and the moratorium is 18 months.

Requirements for approval of CBN loan application and disbursement of funds.

The following requirements are needed either during the application or before the final approval of the CBN loan application and the final disbursement of funds to an applicant.

  1. Company registered with the CAC
  2. Proof of tax payment
  3. BVN
  4. Letter of introduction
  5. Guarantee letter
  6. Certification by an EDI
  7. Identity photo of you and your guarantor
  8. Valid identity card

Who can write an introductory letter for the AGSMEIS CBN loan?

  1. your pastor
  2. Chief Imam
  3. President of the AGL
  4. ADC President
  5. Village chief
  6. Senior Officials Level 14 above
  7. Managing Director of Blue Chip Companies
  8. Your friend or spouse can write the letter of guarantee.

Important Notice: Please note that applicants who submitted last year and received a link to provide more details before the latest requirements are posted do not need to resubmit.

AGSMEIS loan interest rate

Five percent (5%) for the first five (5) years. If you get one million naira (1,000,000 N), you will pay back one million and fifty thousand naira (1,050,000 N) over the life of the loan.

cbn
cbn

How to Apply for CBN AGSMEIS 2020 Unsecured Loan Form.

Step 1: Train

  • Attend a mandatory week-long training course at a CBN Certified Entrepreneurship Development Institute (EDI). You can check the list of EDC CBN centers in Nigeria.

Step 2: Apply for a loan

  • The Entrepreneurship Development Institute (EDI) guides you and helps you obtain all the necessary documents to secure the loan. Download the agsmeis loan application form pdf. Note that you can get the current application form from the CBN EDC who trained you.

Step 3: Receive funds

  • The loans are paid into the account of the beneficiaries. Unqualified applicants receive feedback.

Step 4: Get business support services

  • The Entrepreneurship Development Institute helps you implement a business plan and provide business support services on a commercial level.

Step 5: Make sales

  • Sell ​​products and services to pay off the loan and make a profit.

Step 6: Pay off the loan

  • Run your business, keep proper records, monitor sales and expenses to maximize profits and repay the loan.

About the National Microfinance Bank (NMFB).

The National Microfinance Bank is a leading Nigerian financial institution licensed by the Central Bank of Nigeria (CBN) in Nigeria. The company was incorporated as a limited liability company in 2019 and began operations following the granting of a license by the Central Bank of Nigeria to operate as a national microfinance bank in the same year. It is 50% owned by the Bankers Committee, 40% by NIRSAL and 10% by NIPOST. So far, the bank has disbursed around 776 million loans to SMEs eligible under AGSMEIS.

cbn
cbn

List of CBN Approved Entrepreneurial Development Centers (EDCs) in Nigeria.

The CBN EDC centers in Nigeria provide physical structures, training materials, equipment, human resources and other facilities that would ensure internationally competitive, efficient and sustainable services capable of meeting the needs of MSMEs in the country. This is to encourage private entrepreneurship, self-employment, job creation, income growth, poverty eradication and economic development.

CBN Entrepreneurship Development Centers (CBN EDCs) that target people with at least a high school diploma have the following specific objectives:

  • Develop entrepreneurship among Nigerians and provide an overview of the tools,
    technical and managerial framework of all functional areas of the company, including
    production, marketing, personnel and finance.
  • Develop the skills of future entrepreneurs to start, expand, diversify and
    manage commercial enterprises and put them in touch with financial institutions for start-up capital,
    especially microfinance banks.
  • Create employment opportunities for Nigerians in accordance with the provisions of the
    National Strategy for Economic Empowerment and Development [NEEDS] and recently vision
    2020.
  • Raise a new class of entrepreneurs / owners, who can compete globally and succeed in
    MSME management and build bridges for the future industrialization of the country.
cbn loan
cbn loan

List of CBN EDC centers in Nigeria.

Below is the list of EDC CBN centers in Nigeria and their addresses:

CBN-EDC, Ibadan (South West)
Website: www.edcsouthwest.org
Address: Former SDSTC (premises of the Oyo Oodua skills acquisition center),
Samonda, along the Sango-UI road,
Ibadan, Oyo State, Nigeria.

CBN-EDC, PortHarcourt (South South)
Website: www.ssedc.org
30 route Trans-Woji, Grace plaza, by Slaughter Bridge Woji Town,
Port Harcourt, Rivers State

CBN-EDC, Maiduguri (North East)
website: edcnortheast.com.ng
Address: Old Informatics Institute, Njimtillo, Kano Road,
Maiduguri, Borno State

CBN-EDC, Kano (Northwest)
Address: Murtala Muhammed Library Complex,
Kano, Kano State

CBN-EDC, Makurdi (Center-North)
Off Jonah Jang Crescent,
Close to the Federal Secretariat,
Makurdi, State of Bénoué.

CBN-EDC, Minna (Center-North)
Address: Minna Innovation Institute,
Behind the Niger State Sharia Commission,
Judge Ndajiwo Street,
Minna, State of Niger.

CBN-EDC, Enugu (South East)
Address: Suite Villa Ebenezer
8, Ogenyi Close, near Cornerstone Avenue
Off Nike Lake Resort Road,
Enugu, Enugu State.

You can get more contact addresses of Entrepreneurship Development Centers in Nigeria – https://www.boi.ng/edcpartners/

Entrepreneurial Development Center
website: www.cedl.org
36, Murtala Mohammed International
Airport road, Lagos.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Financial Watch. Every investment and trade move involves risk. You should do your own research before making a decision.


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SBP launches an unsecured financing program for SMEs https://stansmithloans.com/sbp-launches-an-unsecured-financing-program-for-smes/ https://stansmithloans.com/sbp-launches-an-unsecured-financing-program-for-smes/#respond Tue, 17 Aug 2021 01:00:00 +0000 https://stansmithloans.com/sbp-launches-an-unsecured-financing-program-for-smes/ KARACHI: The State Bank of Pakistan (SBP) on Monday launched a program to provide unsecured financing of up to Rs 10 million to small and medium-sized enterprises (SMEs) with the aim of spurring sustainable growth in the sector to short of cash. The central bank in a statement said that “PME Asaan Finance” or SAAF […]]]>

KARACHI: The State Bank of Pakistan (SBP) on Monday launched a program to provide unsecured financing of up to Rs 10 million to small and medium-sized enterprises (SMEs) with the aim of spurring sustainable growth in the sector to short of cash.

The central bank in a statement said that “PME Asaan Finance” or SAAF was an innovative initiative to improve SMEs’ access to finance in collaboration with the government.

Under this program, SBP will provide refinancing for three years to the selected banks. After three years, the refinancing will be repaid by the banks in ten equal annual installments. The selected banks will benefit from SBP refinancing at a rate of 1% per annum and will extend financing to SMEs at an end-user rate of up to 9% per annum, which is very cost-effective. informal financing.

Unsecured (own) financing will be available to SMEs for long-term fixed capital investments and working capital financing needs. Sharia-compliant, as well as conventional, Islamic financing methods will also be offered. The device will be available to SME borrowers towards the end of September 2021.

An interesting feature of the program is that the government will provide 40 to 60 percent risk coverage to selected banks against losses depending on the size of the loans. This risk coverage will be 60% for small loans up to Rs4 million; 50% for medium-sized loans over Rs 4 million to Rs 7 million and 40% for relatively large loans of Rs 7 million to Rs 10 million. “This initiative is expected to enable sustainable growth in financing for SMEs, as it aims to solve the fundamental problems facing this important sector, “the central bank said in its statement.

SAAF is a refinancing and credit guarantee facility that has been developed through an extensive consultative process and aims to help creditworthy SMEs that still cannot access finance as they cannot offer the security required as collateral by banks. The SBP will provide refinancing to banks while the government will provide support through partial credit guarantees to participating banks. This support is provided initially for three years to facilitate banks’ investments in technology, infrastructure and team building specialized in SME lending, after which SME financing by banks is expected to be sustainable without SBP or government support. government.

Commenting on the development, Minister of Finance Shaukat Tarin said: “The MOF (Ministry of Finance) welcomes and supports this innovative initiative of the State Bank, which would allow unsecured SMEs to access bank financing. We look forward to seeing strong participation from commercial banks to move this initiative forward. “

The SME sector plays a central role in the Pakistani economy and is estimated by SMEDA (Small and Medium Enterprises Development Authority) to contribute 40 percent of GDP and 25 percent to export earnings. However, despite this, SMEs are struggling to access formal bank finance, as SME finance stood at Rs 444 billion as of March 31, 2021, which is only 6.6% of total private sector credit. . This is due to several reasons, including relatively higher loan losses, high costs in bank financing models, low use of the appropriate technology needed for SME financing, and lack of acceptable security. SMEs therefore often turn to exorbitant informal credit and face barriers to growth. The majority of informal sector SMEs that do not have collateral currently borrow in cash or in kind at rates of at least 25%. This program is mainly aimed at these SMEs.


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SBP unveils Asaan unsecured SME finance program https://stansmithloans.com/sbp-unveils-asaan-unsecured-sme-finance-program/ https://stansmithloans.com/sbp-unveils-asaan-unsecured-sme-finance-program/#respond Mon, 16 Aug 2021 15:35:57 +0000 https://stansmithloans.com/sbp-unveils-asaan-unsecured-sme-finance-program/ The State Bank of Pakistan (SBP) on Monday presented an innovative initiative to improve access to finance for small and medium enterprises (SMEs) in collaboration with the Government of Pakistan with the express aim of enabling businesses that do not cannot offer security / guarantee to access bank finance. The initiative was named “PME Asaan […]]]>

The State Bank of Pakistan (SBP) on Monday presented an innovative initiative to improve access to finance for small and medium enterprises (SMEs) in collaboration with the Government of Pakistan with the express aim of enabling businesses that do not cannot offer security / guarantee to access bank finance.

The initiative was named “PME Asaan Finance” or SAAF to highlight the SME facilitation function of this program to provide clean loans, ie unsecured loans to SMEs.

According to the central bank, SAAF is a refinancing and credit guarantee facility that was developed through an extensive consultative process and aims to help SMEs that are creditworthy but still cannot access finance because they cannot offer the security required as collateral by banks.

The SBP will provide refinancing to banks while the Pakistani government will provide support through partial credit guarantees to participating banks. This support is provided initially for three years to facilitate banks’ investments in technology, infrastructure and team building specialized in SME lending, after which SME financing by banks is expected to be sustainable without SBP or government support. government.

Speaking on the unsecured loan program, the Minister of Finance, Mr. Shaukat Tarin, said that “the Ministry of Finance welcomes and supports this innovative initiative of the State Bank, which would allow SMEs without collateral to access bank financing. We look forward to seeing strong participation from commercial banks to move this initiative forward. “

What is the SME Asaan Finance (SAAF) program?

Under this program, SBP will provide refinancing for three years to the selected banks. After three years, the refinancing will be repaid by the banks in ten equal annual installments.

The selected banks will benefit from SBP refinancing at 1% per annum and will extend financing to SMEs at the end-user rate of up to 9% per annum, which is very attractive compared to informal financing costs. Under the SAAF, all SMEs that are new borrowers from a bank will be able to benefit from financing of up to Rs. 10 million.

Unsecured (own) financing will be available to SMEs for long-term fixed capital investments and working capital financing needs. Sharia-compliant, as well as conventional, Islamic financing methods will be offered. The device will be available to SME borrowers towards the end of September 2021.

An interesting feature of the program is that the Pakistani government will provide 40 to 60 percent risk coverage to selected banks against losses depending on the size of the loans. This risk coverage will be 60% for small loans up to Rs. 4 million, 50 percent for medium-sized loans over Rs. 4 million to Rs. 7 million and 40% for relatively large loans of Rs. 7 million to Rs. 10 million.


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SBP unveils an unsecured SME financing program https://stansmithloans.com/sbp-unveils-an-unsecured-sme-financing-program/ https://stansmithloans.com/sbp-unveils-an-unsecured-sme-financing-program/#respond Mon, 16 Aug 2021 07:00:00 +0000 https://stansmithloans.com/sbp-unveils-an-unsecured-sme-financing-program/ KARACHI: The State Bank of Pakistan (SBP) on Monday launched an innovative initiative to improve access to finance for small and medium enterprises (SMEs) in collaboration with the federal government with the aim of enabling businesses that do not cannot offer security / guarantees to access bank financing, a statement said on Monday. The central […]]]>

KARACHI: The State Bank of Pakistan (SBP) on Monday launched an innovative initiative to improve access to finance for small and medium enterprises (SMEs) in collaboration with the federal government with the aim of enabling businesses that do not cannot offer security / guarantees to access bank financing, a statement said on Monday.

The central bank said the initiative was named “PME Asaan Finance” or SAAF to emphasize the SME facilitation function of this program and to provide clean, ie unsecured loans to SMEs.

SAAF is a refinancing and credit guarantee facility, which has been developed through a wide-ranging consultative process and aims to help SMEs that are creditworthy but still cannot access finance, as they cannot offer the security required as collateral by banks. .

The SBP will provide refinancing to banks, while the Pakistani government will provide support through partial credit guarantees to participating banks.

This support is provided initially for three years to facilitate banks’ investments in technology, infrastructure and team building specialized in SME lending, after which SME financing by banks is expected to be sustainable without support from the EU. central bank or government.

Speaking about the unsecured loan program, Minister of Finance and Revenue Shaukat Tarin said, “The MOF [Ministry of Finance] welcomes and supports this innovative initiative of the State Bank, which would [the] SMEs to access bank financing without collateral. We look forward to seeing strong participation from commercial banks to move this initiative forward. “

The SME sector plays a central role in the Pakistani economy and the Small and Medium Enterprise Development Authority (Smeda) estimates that it contributes 40 percent of GDP and 25 percent of export earnings.

However, despite this, SMEs are struggling to access formal bank finance, as SME finance stood at Rs 444 billion as of March 31, 2021, which is only 6.6% of total private sector credit. .

This is due to several reasons, including relatively higher loan losses, high cost bank financing models, low use of the appropriate technology needed to finance SMEs, and the lack of acceptable security.

SMEs; as a result, often turn to exorbitant informal credit and face barriers to growth. The majority of informal sector SMEs that lack collateral currently borrow in cash or in kind at rates of 25 percent or more. This program is mainly aimed at these SMEs.

To overcome these challenges, the State Bank has taken a new and innovative approach to address both SMEs and banking issues. The central bank will provide refinancing only to banks that wish to specialize in lending to the SME sector.

Interested banks will be selected through a transparent bidding process to offer concessional refinancing facilities, which would also include partial risk coverage from the Pakistani government.

Banks winning through this bidding process will need to invest in human resources, technology and processes to successfully develop the expertise and ability to attract the SME financial market. To participate in SAAF, interested banks will submit Expressions of Interest (EoIs) to the SBP to build their SME loan portfolio during the program’s three-year validity period.

Banks with the largest portfolio size and the largest number of borrowers will be selected to participate.

The State Bank will encourage banks that partner with Fintechs to provide an opportunity for innovative financing techniques in a cost effective manner.

Under this program, the central bank will provide refinancing for three years to the selected banks. After three years, the refinancing will be repaid by the banks in 10 equal annual installments.

The selected banks will benefit from SBP refinancing at 1% per annum and will extend financing to SMEs at the end-user rate of up to 9% per annum, which is very attractive compared to informal financing costs.

Under SAAF, all SMEs that are new borrowers from a bank will be eligible for financing of up to Rs 10 million. Unsecured (own) financing will be available to SMEs for long-term fixed capital investments and working capital financing needs.

Sharia-compliant Islamic financing methods, as well as conventional ones, will be offered. The device will be available to SME borrowers towards the end of September 2021.

An interesting feature of the program is that the Pakistani government will provide 40 to 60 percent risk coverage to selected banks against losses, depending on the size of the loans.

This risk coverage will be 60 percent for small loans up to Rs4 million; 50% for medium-sized loans over Rs4 million to Rs7 million and 40% for relatively large loans of Rs7 million to Rs10 million.

This initiative is expected to enable sustainable growth in SME finance, as it aims to address the fundamental issues facing this important sector.


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Op-Ed: How Some Founding Fathers Used Slaves As Collateral https://stansmithloans.com/op-ed-how-some-founding-fathers-used-slaves-as-collateral/ https://stansmithloans.com/op-ed-how-some-founding-fathers-used-slaves-as-collateral/#respond Thu, 01 Jul 2021 07:00:00 +0000 https://stansmithloans.com/op-ed-how-some-founding-fathers-used-slaves-as-collateral/ Americans are largely unaware that many of the famous Founding Fathers were deeply in debt. Some of them, including Thomas Jefferson, attempted to prevent foreclosure by using their slaves as collateral. The use of humans to repay debt was refined in the years after 1776 – and this helped revive our American financial system. Slave-backed […]]]>

Americans are largely unaware that many of the famous Founding Fathers were deeply in debt. Some of them, including Thomas Jefferson, attempted to prevent foreclosure by using their slaves as collateral. The use of humans to repay debt was refined in the years after 1776 – and this helped revive our American financial system.

Slave-backed debt was a depravity that treated black men and women as fodder whose only value was the wealth they generated for others. In honor of Independence Day, consider the founders to be debtors, especially at a time when so many Americans are in debt due to a pandemic that has left them unable to pay their rent, mortgage, and mortgage. credit card bills.

Thomas Jefferson died on July 4, 1826, in debt of nearly $ 2 million in today’s dollars. Mount Vernon, the tobacco-based property of George Washington, failed to keep Washington out of debt, so it switched to wheat in the 1760s, although its debt persisted throughout the World War II. independence and its presidency.

The way the founders got into debt was simple. Each year they sold their tobacco to European (mostly British) merchants, mostly in exchange for the goods that supported their lavish way of life. As tobacco prices fell, but their desire for material comfort remained, they paid for this way of life on credit offered by many of the same merchants.

Before the War of Independence, economic conditions in Europe pressed British merchants, who in turn pressed American planters for debt repayment. This has pushed some American planters into financial collapse and others, like Jefferson and Washington, to the brink of financial ruin. Some slave planters even complained of being enslaved to British creditors.

The Fourth of July patricians bristled at the idea that their independence was being cut off by British creditors – and with that independence being so deeply rooted in tobacco, their primary means of raising money owed to these creditors. Tobacco demanded to grow, and without slaves to raise their crops, Jefferson, Washington, and other planters would have been far too busy cultivating to have time to contemplate the lofty ideals of freedom.

In this way, freedom was directly linked to slavery. While it would be inaccurate to say that the founders went to war with Britain just to get out of debt, their growing debt predisposed them to be open to the idea of ​​separating from Britain, resulting in the declaration of independence and the war of independence.

In the years following America’s victory in this war, Jefferson continued to take on deep debt. He sought repayment plans from his European creditors and used his slaves, which he named by name, as collateral against that repayment. In this regard, Jefferson was at the forefront of a flourishing trend. Although tobacco eventually gave way to cotton, an entire financial services industry emerged from pre-Civil War slave-backed loans – through what one economic historian called an “orgy of bank building. “.

The Citizens’ Bank and the Canal Bank of Louisiana, which both eventually merged with JP Morgan, accepted around 13,000 slaves as collateral for loans between 1831 and 1865. When some of these loans defaulted, the bank ended up own about 1,300 slaves. The Bank of Charleston, which ended up being part of Wells Fargo, also accepted slaves as collateral for loans. The same goes for the Commonwealth Bank of Kentucky, which still exists today.

The planters opened new southern shores. They drew up lists of slaves as collateral, then asked these banks to issue loans to members to buy more land and more slaves. The capital of these loans was raised by selling bonds to investors around the world, in London, New York, Amsterdam and Paris – many places where slavery was illegal.

But the investors did not own individual slaves, they did own bonds backed by the value of the slaves. Of course, insurance was then needed for the slaves who supported the bonds that the investors bought to provide loans to the planters to buy more land and slaves. Aetna, AIG, New York Life and many others have come together to provide this assurance.

“The burgeoning American financial industry,” historians Edward E. Baptist and Louis Hyman wrote, “has thrived on the profits from financing slave traders, cotton brokers, and underwriting back-backed bonds. slaves. Black Americans and their descendants never got anything back from a financial system built on their bodies.

Today, many white Americans claim no part in the slavery or brutality of black Americans. Their ancestors immigrated to this country long after slavery ended, they say, and they worked hard, accumulating neither privilege nor wealth. Yet anyone who has ever bought a home with a mortgage, an installment car, invested in the stock market, purchased insurance, or opened a savings account has enjoyed a systemic lien.

The institutions used in these transactions were built on the bodies of black men and women who never derived anything from the enormous wealth they generated. Family wealth accumulates over many generations, and most black families have never had the opportunity to build it, even though they have helped create wealth for many others. This makes a strong case for reparations.

Before that happens – and on behalf of the founding debtors – the federal government should at least extend the moratorium on evictions and provide debt relief to the millions of people behind on rent and mortgages until the pandemic is over and a full recovery is underway.

Clyde W. Ford is the author of the upcoming book “Of Blood and Sweat: Black Lives, and the Making of White Power and Wealth”. He is a contributing writer for Opinion.


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Covishield becomes collateral damage in inter-EU fight over Chinese vaccines https://stansmithloans.com/covishield-becomes-collateral-damage-in-inter-eu-fight-over-chinese-vaccines/ https://stansmithloans.com/covishield-becomes-collateral-damage-in-inter-eu-fight-over-chinese-vaccines/#respond Tue, 29 Jun 2021 07:00:00 +0000 https://stansmithloans.com/covishield-becomes-collateral-damage-in-inter-eu-fight-over-chinese-vaccines/ New Delhi: Even though Indian-made Covishield is not on the European Medicines Agency (EMA) list used for the EU’s green pass, it appeared to have become collateral damage to the fight between the EU in the bloc over the offer to authorize Chinese and Russian vaccines for travelers. EU member countries were divided over whether […]]]>

New Delhi: Even though Indian-made Covishield is not on the European Medicines Agency (EMA) list used for the EU’s green pass, it appeared to have become collateral damage to the fight between the EU in the bloc over the offer to authorize Chinese and Russian vaccines for travelers. EU member countries were divided over whether to allow Chinese COVID-19 Sinopharm and Sino vac vaccines and Russian Sputnik V vaccines as the bloc opens up to travel.

Member countries have proposed a compromise formula, under which the EMA’s vaccine list has been agreed to be used for the green pass that goes into effect on July 1. The European Medicines Agency has listed 4 vaccines, namely Comirnaty (Pfizer), COVID-19 Vaccine Janssen, Spikevax (formerly COVID-19 Vaccine Moderna) and Vaxzevria from AstraZeneca.

It is important to know that the European Medicines Agency (EMA) is a commercial list. He is in charge of the scientific evaluation of medicines / vaccines with a view to their marketing authorization in the EU. The AstraZeneca vaccine produced by the Serum Institute of India – Covishield has been licensed for commercial use in South Asia, Africa, not Europe. This is one of the reasons SII never applied for the list.

The EU Green Pass or COVID Digital Certificate is intended to facilitate safe free movement during the COVID pandemic within the EU. The certificate serves as proof that a person has been vaccinated against the virus, received a negative test result, or has recovered from COVID-19. It is not a prerequisite for travel.

EU officials stressed: “For the purposes of the COVID digital certificate, individual member states will have the option of also accepting vaccinations authorized by the World Health Organization (WHO), such as Covishield.”

Each member country is also allowed to use any vaccine with which it agrees. Switzerland has made it clear that anyone who has been vaccinated or has recovered does not have to produce a negative test even when traveling from countries where the Delta variant is prevalent such as India or the United Kingdom. United. Ireland has classified Covishield as one of the vaccines for travelers coming to the country. France “is actively working” to clear Covishield after India raises the issue.

Interestingly, the EU could have used the World Health Organization or WHO’s approved vaccine list, which included Covishield, but that means giving a green light to the two Chinese vaccines on which the EU has a difference. Covishield, Sinovac, Sinopharm are among the 8 vaccines approved by the WHO.

In a statement to WION on Monday, the European Medicines Agency said Covishield does not currently have a marketing authorization in the block, stressing: “If we were to receive a marketing authorization application for Covishield… we would communicate about it. “


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