ICICI bank, Delhi University to launch course in banking

Delhi University has announced its tie-up with ICICI Bank to launch a certificate course in banking.

The university�s Commerce department will offer a three-month course, Foundation of Banking, which will train students on the practical aspects of banking operations.

Eligibility for this program is a 50 per cent aggregate score in B.Com.

New Web Site Gives Students Crash Course in Surviving Student Loans

New Web Site Gives Students Crash Course in Surviving Student Loans

COLUMBUS, Ohio–(BUSINESS WIRE)–With the creation of a new Web site from Student Lending Works, students have the ability to invite a Student Loan Crash Course Instructor to their campus so they can stay informed about important changes to their federal student loans. The mini-seminar entitled “A Crash Course in Surviving Your Student Loans” will educate students about the new College Cost Reduction and Access Act of 2007 and how it impacts their student loans. Students will also get savvy student loan tips and guidance on choosing the right loan to pay for college.MyStudentLoansDontOwnMe.org enables students to learn more about the Crash Course seminar and provides the opportunity for students to meet the Crash Course Instructors. Students can even get advice about their own loan situation by submitting questions to the Crash Course Instructors online.
“One of the benefits of the site,” said Miranda Ast, a Crash Course Instructor, “is that we don’t require students to sign up for anything on the Web site or at the presentation. And we don’t try to sell them anything. Because we have a mission to the State of Ohio, we’re here to be a free educational resource to students.”With so many changes in the Federal student loan industry, students simply don’t have the time to stay up to date on every issue facing their Federal loans. The Crash Course seminar can be fit into the time frame that works for the students.Student Lending Works always advocates that students review their loan options with their financial aid office. The Crash Course from Student Lending Works streamlines those options into one simple, easy-to-digest seminar.

China tightens banking checks

China tightens banking checks
China's banking regulator has ordered tighter scrutiny of bank lending as part of a government campaign against reckless investment.
Loans to build new industrial and commercial premises will be halted unless they have received government approval, it said.The China Banking Regulatory Commission told all domestic lenders to carry out checks on loans above 30m yuan ($3.6m).Beijing is trying to curb imbalances in China's fast growing economy.The latest checks are being ordered on loans for investment in fixed assets, starting with sectors where the government most wants to cool down spending, such as steel, aluminium, cement, exhibition centres, and golf courses.The checks must be conducted by all Chinese lenders, from the four top tier banks to rural credit co-operatives.

No shirking

"The entire process must be conducted swiftly with no dragging or delay," the CBRC said.
"Strict investigation of responsible parties will be made into those who do not resolve problems in a timely manner," the regulator said.Foreign banks in China are also being asked to provide information on loans worth more than 100m yuan ($12m).It is part of a drive to force banks to take a tougher view of credit worthiness, and to slow industrial expansion in sectors such as steel and cement which are driving up inflation and threatening growth.Recent moves to curb bank lending have included forcing firms to provide a bigger portion of any investment in overheating sectors themselves, and ordering banks to keep more cash relative to the size of their loan books.Beijing has also signalled it is considering raising interest rates. But doing so would carry greater economic risks, potentially raising already-high levels of bad debt in the banks and curbing consumer spending.Fixed asset investment has expanded by more than 30% in the first five months of 2004, compared to a year-ago.

Buy-to-let becomes more complicated

Buy-to-let becomes more complicated

The past decade has seen phenomenal increases in property prices across the whole of the UK, making buy-to-let an attractive investment option.

Buy-to-let lending in the UK now accounts for 12% of all mortgage advances, compared with just 3% five years ago.

It has never been easier to invest in property, from solid terraced homes to city centre new build apartments, property investment clubs, and even companies offering investment in hotel rooms.

But with so much advice on offer to property investors it can be difficult to make an informed decision before taking the plunge.

With house prices now cooling, and with lenders becoming more wary in the wake of the Northern Rock crisis and the "credit crunch", careful analysis of the costs and potential pitfalls of being a landlord is vital.

Bigger deposits

Anyone making any investment decision should do their research thoroughly, a point that is all the more important when it comes to property.
It is never a good idea to buy a property you haven't seen



The property market is awash with new-build city centre flats and it is here that many investors find that they will lose money, both on the capital they have invested and on rental income.

Many lenders now refuse to lend on new-build properties because of this very problem.

Others are demanding much higher deposits of about 25% to ensure there is some equity in the property.

This is a particularly pertinent point for those who choose to enter the buy-to-let market via property investment clubs.

Location and regulations

It is not a good idea to buy a property you have not seen, in an area you do not know, and where you have little idea of rental income and resale values.
To Let signs vie with For Sale signs in many towns and cities


Successful investors should be able to demonstrate a good understanding of the area and the type of tenant they wish to attract.

Our own research shows that investors make the best returns from family homes, with good transport links, good schools, evidence of regeneration and so on.

The old adage "location, location, location" still rings true.

Investors need to be aware that in 2006 the government introduced a new licensing scheme for houses in multiple occupancy, making the property and landlord adhere to certain standards before it can be legally rented.

Without a licence obtained from the local authority it will not be possible to secure funding.

New investors will also need to be aware of the tenants' deposits scheme.

Tenants' deposits are no longer held by the landlord, but by an independent government-appointed company.

This step was taken to avoid disputes between a landlord and tenant.

Doing the maths

Buy-to-let mortgages, unlike residential mortgages, are generally not calculated as a multiple of the applicant's income.
Investors should consider the scenario of higher interest rates



Instead, they are calculated against the monthly achievable rent for the property - the "rent-to-interest" cover.

Put simply, the rental income a property can achieve must be greater than that of the interest-only mortgage payment.

Historically, buy-to-let lenders look for a rent-to-interest figure of 130%, meaning that rental income exceeds the interest only mortgage payment by 30%.

However, as interest rates have increased, lenders have softened this requirement and it is now possible to find mortgage products with a 100% rent-to-interest figure.

It should be noted that such products typically attract a higher arrangement fee.

Investors should consider the scenario of higher interest rates and whether the rent will be sufficient to cover possible increases.

Bank rates

Libor (London Interbank Offer Rate) also forms the basis of some buy-to-let mortgage loans and is more common in the buy-to-let market than the residential market.

Libor is the rate at which banks lend each other money.

Because banks are currently less willing to lend to each other, this rate has been pushed up significantly.

Libor is normally on a similar level to base rate. However three month Libor has been as high as 6.75% recently, making Libor-linked mortgage much more expensive.

A number of buy to let lenders also use Libor as a benchmark for their standard variable rate.

Changing deals

Buy-to-let lenders are increasingly offering extremely competitive headline interest rates and gaining their margin through a higher arrangement fee of up to 3% of the loan.
Buy-to-let, like most investments, should not be seen as a way to a quick buck



This is a particular issue with one year, fixed rate, buy-to-let mortgages.

The process of remortgaging means investors will incur fees each time they remortgage, and the value of a mortgage must be assessed against the incurring of these fees in future transactions.

Lenders tend to be risk averse and many will avoid certain types of property including bedsits, studio flats, high-rise flats, DSS tenants, ex-local authority properties, houses in multiple occupancy and flats over commercial premises.

That said, houses in multiple occupancy and flats over commercial premises tend to attract higher rental yields, thus making them attractive for investors.

This year has seen lenders introduce specialist buy-to-let products designed to finance these types of property.

Capital growth

Buy-to-let, like most investments, should not be seen as a way to a quick buck.

Whilst rents have increased steadily and demand for rental properties remains high, investors are unlikely to see substantial revenue from rental incomes alone.

Investors need to have a long term investment strategy that looks for capital growth on their property or property portfolio.

The opinions expressed are those of the author and are not held by the BBC unless specifically stated. The material is for general information only and does not constitute investment, tax, legal or other form of advice. You should not rely on this information to make (or refrain from making) any decisions. Always obtain independent, professional advice for your own particular situation.

Irish bank hit by credit crisis

Irish bank hit by credit crisis

A specialist Irish bank has suspended trading in its shares due to the international credit crisis.

The Dublin-based International Securities Trading Corporation, founded two years ago, is the first Irish bank to be hit by the "credit crunch".

The niche bank said the financial turmoil forced it to suspend trading in its shares and had prompted a write-off of 70m euro from its own accounts.

It does not deal with private customers but lends to other institutions.

With ISTC claiming a "total capital base in excess of 440m euro", the write-off is a serious blow.

Only those in high finance in Ireland are likely to have heard of International Securities Trading Corporation (ISTC) before Monday, but many more will know about it now for the wrong reasons.

In a statement, ISTC said: "The turmoil experienced in financial markets since July last is unprecedented, and has represented one of the most difficult and challenging market environments experienced by the banking sector over the past 30 years.

Investment

"Against this backdrop, ISTC's high quality bank capital loan portfolio and conservative funding, capital and liquidity policies had put the company in a position to weather the market disruption, albeit with negative consequences, including an ongoing reduction in its liquidity position."

However, a negative assessment by ratings agency Moody Investor Services last week on a $310m investment through "specialist investment vehicles" (SIV) made by ISTC, plunged the bank into its current difficulties.

The SIV's were being "sponsored and managed by leading international banks," the company statement added.

Judgements from Moody's are a trusted barometer for investors, and the negative review has had serious consequences.

In its statement, ISTC said it "will now have difficulty in retaining the existing financing or alternatively obtaining new financing" for its SIV's, which account for around 7% of its loan portfolio.

The downgrading meant the value of the investments the bank was using to raise funding were now worth less, affecting ISTC's ability to provide cash to borrowers and its financial liquidity.

The drop in a key investment asset has also forced the company to make a provision in its accounts, writing off at least 70m euro from its value.

Negative

Annual results due to be posted have been suspended for several weeks while a revaluation of its downgraded investment is carried out, to assess the true financial picture of the company.

Following Moody's negative rating, ISTC itself was downgraded in a separate assessment by another investor analyst, DBRS, bringing more difficulties, and forcing the company to seek to renegotiate its own credit terms.

"Given the uncertainty to ISTC's funding position precipitated by the SIV credit rating action, the company now intends to enter into discussions with its providers of finance with the objective of making appropriate amendments to their respective financing terms," the statement added.

Postponement of the 2007 financial results has prompted a suspension of trading in the company's ordinary shares, and halting of marketing of a drive to raise cash through a bond issue launched only late last month.

While the global credit crunch led to long queues outside the Dublin offices of troubled UK bank, Northern Rock, in September, ISTC's problems are the first to be experienced by a native Irish bank.

Unlike Northern Rock however, queues of small investors will not be snaking around the offices of ISTC, with those worried a much smaller group of much richer people including titans of corporate Ireland.

Among those thought to have invested in the bank are Fermanagh tycoon Sean Qunn, Dublin-born telecoms magnate and tax-exile Denis O'Brien, and Smurfit chief executive Gary McGann.

That such shrewd investors are behind a company now in trouble will heighten the shock in Irish financial circles.

The difficulties affecting ISTC are a far cry from the high hopes for the company founded only two years ago as Ireland's economic boom - the so-called "Celtic Tiger" - was in its prime.

But the past six months has seen a 30% fall in the Irish Stock Exchange index of leading shares, the ISEQ.

With negative sentiment among international investors leading to a flight of capital from Irish stocks, the bank's troubles come at a bad time for corporate Ireland.

Bad Credit Loan: Salvation or Damnation?

Bad Credit Loan: Salvation or Damnation?

Here is a useful guide to Bad credit loan. Bad credit loan mean that you are taking out a loan that may depend on your credit history. Your credit history includes county court judgements, and defaults on repayments of previous loanor financial transactions. To the loan officer in your bank, this may mean that giving you a loan could be a risk because according to your history, you are more likely to have late or defaulted repayments.

However, some institutions may approve bad credit bank loan applications. Keep in mind that they may charge you a higher interest rate. If you have bad credit or poor credit history, you may have trouble convincing lenders to approve your loan.

You may increase the chances of getting approved by applying for a secured loan or by reducing your loan amount. Your credit history will be checked when you apply for a loan so lenders can assess your credit rating. This is one of the most important factors for them to consider when deciding whether to offer you a deal. If your loan application is accepted you will be given a sum of money, which you will usually have to pay back in monthly installments over an agreed period of time.

Having a bad credit rating doesn't mean you are a financial disaster, but missing payments on other loan against you is a guaranteed way onto the credit blacklist. Other unexpected events such as divorce, or redundancies could also have a negative affect. But even the most unlikely person could have a bad credit rating. You might be too young, or just may not have had any form of credit before.

What do you do if mainstream lenders don't want your business? If this is the case and you need a loan you should concentrate on firms that offer bad credit loan. Some lenders specialise in this type of loan, which is designed for people other lenders may not want to deal with because of their poor credit history.

These lenders generally specialise in making bad credit loan that are substandard by normal banking criteria, and that the traditional banking community passes up because the borrowers' previous credit is poor or there is not enough collateral.

Since these lenders make these substandard loan, financial regulators allow them to charge much higher interest rates than regular banks can charge.

Though these lenders make bad credit loan other lenders won't touch, each has its own acceptable criteria. One major advantage of using alternative sources of capital is that they may make you a loan when no one else will. And, of course the drawback is that you will pay a very high interest rate for the privilege of borrowing.

Interest rates on bad credit loan can be higher than other personal loan because of the perceived risks to lenders, but they are a readily available alternative source of funding for people affected by poor credit ratings.

Banks may be more selective of their loan applicants. Since banks tend to be more cautious of their investments, they are less likely to offer loan to those with bad credit ratings. You might need to prove that you can repay the loan.

Or an unemployed can take a home equity line of credit which is like a credit card with revolving balance. You draw against it when you want, like using a credit card, and as you repay the balance, the credit becomes available again. A home equity line of credit or HELOC?s can be very accommodating in case of periodic expenses. Basic necessities are easily fulfilled with the help of line of credit during unemployment period. This will enable the unemployed to get those increasing credit cards bills to rest.

Debt consolidation floanor unemployed are also accessible. Debt consolidation will make it easier for the unemployed to regulate their debts and also considerably lower the rate of interest. As an unemployed you can go to a debt management firm. Debt management firm can get your creditors to reduce your interest rates and also to relinquish any late fees. However, talk to more than one firm before you settle on which debt consolidation or management firm to settle. The debt management firm in question should be sympathetic to your unemployment status and ready to do the hard work for you.

Unemployed tenant loan are also readily accessible. Loan lenders are willing to give loan to tenants to those have little or no income. An unemployed who is on income supports, benefits, or disability allowance then this incomes will be counted as total declared income. A flexible unsecured loan would be appropriate for unemployed tenants. Flexible loan for unemployed would be ideal for they have stand by facility, holiday period or overdraft. This will ensure repayment to be made at later time without any severe penalties implemented against you. This is perhaps the last thing you would want in your already taut financial condition.

Student can apply for under the unemployed loan scheme. A recent survey has found that the people are more worried about their debt than about any other situation. Unemployed loan help college student to get ample money for their education requirements.

Personal loan for unemployed have both the ability and the proficiency to match their expectations and requirements. An unemployed consumer seeking a personal loan should search for a repayment plan that can be stretched out overtime. Opting for this type of loan can circumvent the chance of biting off more personal loan than one can afford while they are looking for a new employment opportunity.