A loan of HUF 3 billion is issued daily by the population

The retail credit market is booming: new personal loans and home loans totaled HUF 459 billion over four months, representing a 25% year-on-year increase and a daily average of $ 3 billion. Home loans grew by 19 percent to HUF 284.5 billion and personal loans by more than 35 percent to over HUF 174 billion.

Demand in the retail credit market remains strong

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Frediricks Garland expects the market to gain even more momentum from early July, thanks to new government-backed chocolate designs and the launch of baby loans. However, in the face of very strong competition, it is wise to choose carefully, although many now look at interest rates on loans, but other conditions must be taken into account and must be met throughout the term.

Between January and the end of April, banks spent a total of nearly HUF 459 billion on the two most important types of loans, home loans and personal loans, an increase of 25 percent, according to Frediricks Garland’s latest analysis of central bank data.

An average of 3 billion a day

An average of 3 billion a day

“The $ 459 billion figure means that banks’ customers on average have signed new home loan and personal loan deals worth $ 3 billion, including weekend days,” said Erika Trencsán, a loan expert at Frediricks Garland . He added: “Our latest data also shows strong demand . By the end of May this year, Frediricks Garland’s calculators have calculated over 106,000 personal loans and 154,000 for mortgages that include home loans .”

Frediricks Garland’s expert also said that borrowers are becoming more aware , looking at banks’ offers and applying for security before applying. This also indicates that more and more people are choosing fixed-term loans for several years . “However, many people only interest, the annual percentage rate of charge is monitored, but it is very important for other conditions as well. For example, the size or required by the banks, such as checking account. It is important the income that these obligations must be met not only by borrowing at, but the whole during term time, otherwise you may lose your benefits “- emphasized Erika Trencin, adding that experts should be asked often involve complicated because of the conditions.

The market can change the speed

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Frediricks Garland predicts strong growth in retail lending this year from early July. After that, the latest state-sponsored constructions will be available, including extended family home promotion ( chocolates ) , village chocolates for real estate in small settlements , and baby loans . They are already quite interested in them before they start, so they are expected to give further impetus to development.

Rising Credit Interest, Slow Entrepreneur Expansion, More Competitive P2P Lending

After Bank Indonesia (BI) decided to raise the benchmark interest rate or BI-7RR Reverse Repo Rate (BI-7DRR) by 25 basis points to 5.75 percent, a number of businessmen in the banking sector were preparing to raise their lending rates.

This condition is considered unprofitable for entrepreneurs, the public and the government. For this reason, according to Hariyadi, one of the steps in anticipation is that employers must carefully manage operational aspects efficiently.

On the other hand, this situation brings concern to the decline in people’s purchasing power. The solution, said Hariyadi, entrepreneurs must secure the domestic market.

According to him, entrepreneurs and the government must increase value added production so that the economy is able to survive in this situation.

He continued, the important point in the spotlight was that the government should not panic, entrepreneurs also need to face the current situation. As is known, the increase in bank lending rates so far is still acceptable.

 

Increase Credit Interest

Increase Credit Interest

The Economist Institute for Development of Economics and Finance (Indef) George Optisema said a number of banks had raised interest rates by 25-50 bps.

According to him, the base points were considered quite moderate amidst a slowdown in household consumption.

Bhima said business expansion could be disrupted if it increases aggressive interest rates. He also believes, if not careful, the non-performing loan (NPL) or problem loans will increase:

“If it happens, then the bank loses its own. For this reason, banks usually prefer to cut net interest margin compared to raising credit interest. “That’s the trade off .”

President Director of Rose Bank or BCA Tiaya Santisima has raised twice the loan interest rate this year. The first increase was made in August. Then, interest rates rose again after the increase in the benchmark interest rate or BI 7-DRR.

“We have indeed raised 25 bps because the Fed raised interest rates by 25 bps. But apparently the exchange rate (dollar) is still increasing. So it should be increased if 50 bps is safer. “

Tiaya views, to be safer, credit interest rates should increase by 50 bps. However, if the decision is taken, it will affect the business world. The reason is, if the bank raises interest rates too high, then the growth of the business world will increasingly stagnate. Seeing these risks, finally the increase in interest rates was pressed slowly.

Usually, he said, the increase is usually followed by an increase in deposit rates and then transmitted to an increase in lending rates:

BNI Treasury and International Director Ondoy Rizal said that the interest of BNI Credit with floating or reference rate interest rates has automatically adjusted to the increase in market interest such as the JIBOR (Jakarta Interbank Offered Rate) or London Interbank Offered Rate (LIBOR).

Both use a floating rate , which is the amount of change in the interest rate adjusted for a certain period of time.

 

Competitive P2P Lending

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Quoted from Kontan Newspaper, Monday (10/08/2018), related to the increase in bank loan interest rates ranging from 25 bps to 100 bps, Amseleran Chief Credit Officer & Co-Founder Chris Gutom said that it had not had a significant influence on P2P Lending activities.

In fact, many finteches have not made adjustments to interest rates, including Amseleran.

He continued, the interest rates at P2P lending were still higher compared to bank interest rates, which were 12 percent to 14 percent per year before the BI-7DRR rose by 25 bps in May.

In comparison, the average interest rate in Acceleration is 18 percent to 21 percent per year for debtors.

What is your response after reading the news about the effect of the increase in benchmark interest rates and loan interest rates? Give your opinion in the comments column below.

Why should I not finance 90% of the purchase of my new house?

For many, finding a bank or financial institution that grants mortgage loans with only a 10% guarantee, is a dream or an opportunity that should be seized as soon as possible. However, you should keep in mind that it really isn’t.

In the world of credit, it is always advised to get out of debt as soon as possible

In the world of credit, it is always advised to get out of debt as soon as possible

It is not worth financing the small purchases you make in many installments since all you are doing is accumulating interest. And although in large purchases such as those of a new car or home, it is understandable that canceling them takes much longer, this should not be abused.

In this sense, if you are able to give a higher initial or down payment

In this sense, if you are able to give a higher initial or down payment

The recommendation is that you do so. Although the bank offers to finance up to 90%, you can choose to deliver a down payment of 20 or 25% of the value of the home, thus obtaining a considerably lower credit and therefore, you will pay less interest and cancel the debt in A shorter term.

Before deciding how much you can deliver as an initial fee, make a list of the expenses that a new home encompasses, not only in the documents to be processed, but in moving and arrangements. If after this, you are able to do so, you should know that reducing the amount you are financed will have a positive impact.

Compare them and only then choose the one 

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Now, something that you have to take into account is that some banks have the condition that the initial fee does not exceed a certain percentage, so before choosing an institution, you should know what options you have, compare them and only then choose the one that most agree.

How to improve your economy and personal finances with savings in 2017

One of the most recurring purposes when the new year arrives is to organize ourselves better to save a little more. And it is that having a good planning of the family economy is essential to face the year successfully.

The ball dance begins with the January slope . Christmas expenses , added to the pending invoices, make tightening the belt the usual tonic when entering the new year. The first recommendation to control Christmas expenses is to compare prices on everything: gifts, dinners, parties and models, among others. It will be more profitable to invest a little more time in searching and comparing, than choosing the first option that comes your way.

Experts say that to reduce costs it is essential to apply smart consumption techniques

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Once the Christmas season is over, don’t lose the habit of comparing prices . Few can escape the power of attraction of the rebates at the beginning of the year, but do not get carried away by temptation and do not squeeze your credit card to the fullest. Experts say that to reduce costs it is essential to apply smart consumption techniques. The key is to set a maximum budget. And above all, set priorities: avoid impulse purchases and focus on buying what you need. That is why it is a good idea to make a previous list of what you need . Of course, leave a small part to give you that whim that you fancy so much. That way you won’t get a scare when reviewing your accounts!

Savings systems

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One of the best ways to save throughout the year is to set up a savings system that suits your pace of life. There are hundreds of options beyond the usual moneybox, but you have to take into account several factors when choosing one or the other, such as the income you have each month and whether they are regular or not.

For some time, saving has become a great challenge. Each season new savings systems come to light with more or less benefits and different levels of difficulty to carry them out. But, without a doubt, there are 3 saving methods that have been made with the top positions in the popularity rankings thanks to their proven effectiveness.

  1. The 52 week method . This saving system that María Pilar Amela has popularized consists in saving weekly an amount equal to the week of the year in which you are: the first one euro, two euros the second, and so on. Obviously, the last weeks of the year will be the hardest because in addition to facing the extra expenses of Christmas, you should save just over € 200. But, as the expert says, you can use tricks such as going backwards (start the year saving the maximum and end up with one euro), or do it sautéed by keeping track of the weeks completed with a calendar. The total is € 378 saved per year !
  2. The kakebo. You may know this Japanese savings system because of the famous booklets that were used to put it into practice some years ago. This method is more a system of accounting and reflection , since it consists in writing down in one of these organized notebooks all the expenses that you have per month: rent, bills of supplies, purchases in the supermarket, the whims, the gasoline of the car … By keeping it up to date and making the summary at the end of the month, you will clearly see how the money has gone and you can make a better planning of spending for the following month.
  3. The piggy bank of change. This is the easiest saving method. To carry it out you will only need perseverance and set a goal that you can meet. At the end of the day it is still a piggy bank that you fill but with more responsibility. For example, propose to keep in your piggy bank all the euro coins that reach your pocket, or suppress morning coffee and save in your piggy what it costs you. Why not decide to empty the purse at the end of the week? Or even take the opportunity to save a part of the change every time you pay with a ticket. With this technique of an ant , if you have patience and do not cheat, you will save a good amount of money throughout the year.

Managing your money to save

Managing your money to save

Managing your money to save something during the year is a task that at first is not easy, but whose result is certainly very rewarding. Put into practice some of these savings systems and next summer you will have extra help to spend on leisure and travel , or whatever you want. At the end of the matter is to enjoy your money!