Banks offer wide range of personal loans this Christmas
Children count on Santa Claus to fulfill their Christmas wishes, but adults either have to try and save their money all year, or as many people seem to be doing this year, apply for a loan. And even though they know a loan is not the same thing as free money because it has to be paid back — with interest — those who are intent on purchasing new items for their homes or going on holiday abroad don’t seem to mind the sacrifice, at least not yet. This Christmas the banks are actively courting business, with one lending institution even taking the bold step of going to their customers, rather than waiting for them to walk through the door. Hyacinth Latchman reports.
Gaby Ake, Retail Banking Manager, Scotia Bank
“What happen is that people were saying that they did not have time to come to the bank. Then we said if you don’t have time we will come to you. We listen to the customers. So they all took time to go to various establishments. It was fun because the response was great. People enjoyed it and the approval for the loans was quick. It was all fun and I think that both the staff enjoyed it and the customer enjoyed it because they got their loans quicker. They got what they wanted and we got the loans going.
Let’s begin with residential mortgage loans. They are quoting ten and a half percent. If you would use that same calculation our interest rate is 8.8 percent. The effective rate is fifteen and a half percent rather than 8.8 percent add on. That is for residential mortgage loans. For vehicle loans our interest rate is ten and a half percent add on for new vehicles. Then we have other loans for consumer which range from 10 to 13 percent add on.”
Ake says while loans are readily available he advises people not to borrow foolishly. The latest you can apply for a Scotia loan in time for Christmas is December twenty fourth. The minimum amount is three thousand dollars for a personal loan.
At Barclays Bank the minimum is even lower: one thousand dollars. The interest rate for a personal loan is 13 percent. Jeanine Vernon says potential clients don’t have to have an account at Barclays but will have to provide the necessary information.
Jeanine Vernon, Personal Banker, Barclays Bank
“When somebody comes in to make a loan we want them to come in with an introductory letter. This would explain what is their salary is, what is your position and how long they have been at the employment with that particular job. Within twenty-four hours I could get back to them and tell them if the loan is granted or not.
Especially during this season you want to have the new refugee and a new stove and everything. Everyone wants the house pretty with new marley and so on and this is the way to get it.”
Like Barclays at the Belize Bank the minimum amount you can borrow for a personal loan is one thousand dollars. There is also a Christmas special on at the Belize Bank.
Leopoldo Waight, Sr. Assistant Manager of Loans, Belize Bank
“For Christmas we are marketing our action plan loan which is consumer loans. Basically what we are doing is that we are allowing clients to defer up to three months payment. So that if they have any expenses from Christmas, they might need to pay it between January, February or March and service their loans. The benefits of that is that for every thousand dollars you borrow you receive a raffle ticket.”
So far three Belize Bank clients have already won state-of-the-art computer equipment. While the Bank of Nova Scotia, Barclays and Belize Bank have as closing dates for loan applications for Christmas season December twenty fourth, Atlantic Bank says they gave out so many loans they have had to close the Christmas promotion already. However, if you prefer to bank with Atlantic you can enter their upcoming Valentine’s Day raffle, if you want to look that far ahead.
Hyacinth Latchman
“And perhaps you should be looking ahead when you take out a loan, because as easy as it seems now, you will have to repay that loan next year. Reporting for News Five, I am Hyacinth Latchman.”
Despite the attraction of what look like easy terms, potential borrowers are urged to shop around before signing on the bottom line. As you may have noticed from this story, interest rates are expressed in a variety of ways. For purpose of comparison tell your banker that you want to know the loan’s annual percentage rate — or A.P.R. — and don’t forget: whatever you borrow has to be paid back.
