interest rates – I Have 50 Dollars Thu, 10 Mar 2022 12:40:00 +0000 en-US hourly 1 interest rates – I Have 50 Dollars 32 32 Biden takes big step toward government-backed digital currency Thu, 10 Mar 2022 12:40:00 +0000

A US digital currency could be on the horizon.

The Biden administration is supporting the research and development of a “US central bank digital currency,” or CBDC.

The move is part of a broad executive order signed by President Joe Biden on Wednesday asking the federal government to explore possible uses and regulation of digital assets such as cryptocurrencies.

“My administration places the utmost urgency on research and development efforts into potential options for designing and deploying a CBDC in the United States,” the executive order reads.

The order directs a wide variety of agencies to begin research and submit reports on a variety of digital currency issues, from design and security to financial and societal impacts.

“We know that the implications of the potential issuance of a digital dollar are profound. They are extremely varied,” a senior administration official told reporters on a call Tuesday.

While a US digital currency wouldn’t necessarily change much in terms of everyday experiences like buying goods and services, economists say it could transform central and commercial banks, as well as government sanctions, banking accessibility and taxes.

“The potential here is huge, and it’s very exciting,” said David Yermack, professor and chair of New York University’s finance department.

The executive order will call on the government to investigate the technical needs of a digital currency and advocate for the Federal Reserve to continue its research and development, according to a fact sheet released by the White House.

The Fed released a white paper in January on the potential creation of a CBDC that would complement existing payment systems. He found that a CBDC could make payments cheaper and easier for consumers, but could also pose a risk to the stability of the US financial system.

In its fact sheet, the administration said it would also take steps to “mitigate the illicit finance and national security risks posed by the illicit use of digital assets by directing unprecedented coordinated action among all relevant U.S. government agencies to mitigate these risks.”

The United States would not be the first country to have a digital currency. China has introduced its own CBDC, with over 140 million people having opened digital “wallets” and many other countries have deployed or are developing digital currencies. The Bahamian Sand Dollar is considered one of the most successful digital currencies in the world.

Yermack said the Biden administration’s move signals what he sees as some inevitability of a broader move toward digital currencies.

“It’s not a question of if but when,” he said. “Once central banks start co-opting technology, that’s pretty much game over.”

Although the administration’s fact sheet didn’t provide any details on how a U.S. digital currency works, Yermack suggested the functionality could be reasonably simple, with transactions flowing directly to and from the Fed, bypassing banks. and payment systems and creating almost transparent flows. cash.

It’s a simple concept with the potential for far-reaching ramifications. Yermack said a widely adopted digital currency would pose existential questions for banks and many other financial services focused on facilitating payments.

“Bill Gates said there will always be banks but there won’t always be banks,” Yermack said.

Digital currencies also open up new possibilities for how government exercises policy, said Michael Bordo, professor of economics and director of the Center for Monetary and Financial History at Rutgers University in New Jersey.

A digital currency could make the type of coronavirus pandemic stimulus payments almost instantaneous and much more efficient, he said, perhaps even reaching people who have previously been excluded from banking services.

Bordo cited the Bahamas digital currency as an example of how the unbanked can benefit.

“They found it really worked, and they found ways to make it really simple, because there are a lot of very low-income people who don’t have bank accounts,” Bordo said.

In addition to consumer benefits, a US digital currency would give the Fed a new tool that economists have so far only theorized about: negative interest rates.

Interest rate controls are the Fed’s main means of stimulating or cooling the economy, but it has its limits. Banks can only lower interest rates on regular money to such a low level, known as the zero band, leaving central banks with few options when interest rates are already low and the economy needs a boost.

With a digital currency, the zero limit does not exist, allowing for aggressive action when needed.

“If the money is electronic, the government can just erase 2% of your money every year,” Yermack said. “I think it’s going to become a necessity just because of the changing demographics around the world.”

Bordo also highlighted negative rates as an important feature of digital currencies.

“I think this is something that could be a game-changer for the Fed,” he said.

Despite all the theoretical possibilities, a US digital currency faces many real obstacles. Bordo noted that commercial banks have a vested interest in opposing the technology.

“Putting this project through is going to be a big project,” he said.

Yet a broader momentum for government-backed digital currencies is building. Yermack said he advised major governments to create their own currency and that as more countries adopt theirs, “the others are probably going to follow suit pretty quickly.”

“Two years ago everyone was ridiculing that,” Yermack said. “Now that’s the hot thing to do.”

The Bank of Israel explores the impact of the digital shekel on the banking system – Ledger Insights Tue, 08 Mar 2022 11:28:13 +0000

Last week the Bank of Israel published an article assessing the potential impact of issuing a central bank digital currency (CBDC) – the digital shekel (SHAKED) – on the stability of the banking system. While the central bank has built a action plan for the potential issuance of the SHAKED, he reiterated that he “has not yet decided whether he intends to issue a digital currency”.

As part of the action plan, the Bank of Israel analyzed the potential impact of issuing a CBDC on the stability of the banking system and its ability to perform its financial intermediation function. Issuing a digital shekel would also lead to a change in the composition of the Bank of Israel’s balance sheet. The SHAKED would be added to central bank liabilities (in addition to total cash in circulation), while commercial bank deposits would decline.

The Bank of Israel’s analysis predicted a negative impact on the profitability of the commercial banking system, but it is not expected to be material to the sector’s operations, stability or lending capacity.

However, it is expected that the transfer of money from commercial bank deposits to the digital shekel would erode commercial bank liquidity ratios and lead to a limited increase in bank interest charges and subsequent attrition of net profits. The transition from consumer bank deposits to SHAKED could weaken the balance sheets of commercial banks, possibly eroding the liquidity safeguards put in place for banks since the 2008 financial crisis through the Basel III regulatory framework.

If the transfer of deposits from the public to the digital shekel reaches significant volumes, the banking system should attract funds elsewhere. For example, the document presents a scenario where the Bank of Israel provides loans to the banking system.

CBDC Assumptions

However, these results are also based on a series of assumptions. The main assumption is that the banking system would be interested in maintaining the same level of credit to the public. Furthermore, the paper assumes that the banking system will absorb the erosion of credit spreads instead of passing it on in higher interest rates.

It also predicts that SHAKED will bear no interest and does not take into account any adaptations of commercial banks‘ business models as a result. In the end, “it is difficult if not impossible to reliably assess what will be the extent of the substitution between the deposits and the SHAKED, because it depends strongly on the technological and commercial characteristics of the SHAKED”.

Meanwhile, last year the outgoing head of Germany’s Bundesbank said commercial banks should not be protected like an endangered species. Last February, the nonpartisan US Congressional Research Service published an article on the CBDC in which it explored various systems that a CBDC could crowd out. This included crowding out bank deposits, but also private payment systems, private digital currencies, cash and cross-border payment platforms.

Kuda Bank challenges the traditional banking system in Nigeria and has won so far Thu, 03 Mar 2022 12:32:40 +0000
  • Kuda Bank entered the Nigerian banking industry in 2017 as a then digital-only bank and won hearts
  • Kuda uses technology as part of its advantage over conventional banks and targets the young population in Nigeria
  • Experts are divided on the viability of Kuda’s model, but believe it is new and laudable in the face of the emerging technological age

For the most part, Kuda Bank is branchless. This means he has no physical structures, nowhere to physically go and file complaints if something is wrong.

But that has not deterred Nigerians, especially young people, from opening an account with him.

CEO and Co-Founder, Babs Ogundeyi and Musty Mustapha
Source: UGC

At last count, the bank had more than 1.4 million customers since its inception in 2017, five years ago.

It challenges traditional banks with physical branches and structures to dance to and it’s a winner.

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The bait for Kuda customers

The bank largely caters to the suave, tech-savvy and ever-growing youthful population in Nigeria.

At the touch of a button, potential depositors have opened accounts with Kuda and their service delivery is top notch.

Their use of technology in operations is the main lure for people who prefer convenience and ease of banking.

Ifeanyi Udeozor, a financial analyst, told Legit that Kuda Bank has studied the technology ecosystem in Nigeria and knows that operating a digital-only bank will fly into a population familiar with the use of smartphones and smart devices.

Udeozor said:

“I feel like the bank knows the psychology of Nigerians very well. They know their model will resonate with certain demographics in Nigeria. They don’t care about other people who, they just do their thing and they win hearts for it.

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Ride on the back of goodwill

Last year, the bank raised a colossal $55 million in a funding round that allowed it to expand its operations.

The $55 million Series B round comes on the hills of a $25 million Series A round announced just over four months earlier, bringing the startup’s valuation to $500 million.

Business Insider reports that co-founder and CEO Babs Ogundeyi explained that the money would be used to double down on new services for Nigeria and prepare for its launch in more countries on the continent.

What Ogundeyi said:

“We have done a lot of resource deployment in our operating entity, in Nigeria. But now we are doubling down on expansion, and the idea is to build a strong team for Kuda’s expansion plans. We still see Nigeria as an important market and we don’t want to be distracted, so we don’t want to disrupt those operations too much. It is a strong and competitive market. This is an area over which we believe we should have control. So this funding is to invest in expansion and to have more experience in the business versus expansion.

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For Babs and Musty, it was always about building a pan-African bank, not just a Nigerian leader, said Ricardo Schäfer, partner at Target Global. The prospect of banking over a billion people on day one really stuck with me at first.

Technical expertise and quick response

Udeozor said the bank will not just crush existing commercial banks that have been stuck in the past, but will surpass them in terms of goodwill.

He said:

“They react quickly to problems. They send updates when things are not going well. Whether it’s via email or in-app message, Kuda Bank makes sure you don’t miss any information they’re trying to get across.

Kelechi Okoro, a former banker and analyst that traditional banks are getting greedy and throwing everything about customer service to the winds.

okoro said:

“They are not only greedy but heady and proud. Their staff treat customers with disrespect in most cases. Their customer service is rapidly deteriorating.

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I’m not surprised that today’s young population is flocking to digital banks like Kuda.

But, Jide Okeowo, a reporter doesn’t believe Kuda is quite there yet. He said most Nigerians are still skeptical about the internet.

Okewo said:

“Many Nigerians including myself believe in seeing and believing. How am I going to trace my money if something catastrophic happens? I believe in walking into a bank, watching people in the eyes and see them deal with my problem.”

Top Savings Platforms Paying Higher Interest Rates Than Banks in Nigeria reported that the Nigerian financial industry landscape is replete with exciting options, most of which give users the opportunity to make a choice that enables them to make optimum use of it.

While some Nigerian banks pay higher interest to depositors for saving money with them, others are just there to make a profit and show great numbers at the end of their financial year.

The minimum interest rate approved by a regulatory body like the Central Bank of Nigeria (CBN) is 1.5%.


Commercial banks raise interest rates on deposits, businesses face difficulties | Business Tue, 01 Mar 2022 06:55:34 +0000

Commercial banks raise interest rates on deposits, businesses face difficulties. (Photo: SGGP)
Increase in demand for capital

Since the Lunar New Year, to mobilize people’s idle money, many commercial banks have increased their interest rates on savings by 0.2-0.8% per year, mainly for terms longer than six months. . The move aims to help commercial banks increase their loan capital during the Tet holiday, promote loans and inject a large amount of capital into production and business activities. However, many commercial banks said that a large amount of bank deposits had been shifted to other investment channels with higher profitability, such as gold, securities and real estate. It has forced commercial banks to balance between raising interest rates on deposits to attract capital and keeping lending rates low enough to help businesses weather the pandemic.

In January 2022, credit growth jumped 2.74% compared to the end of 2021, showing a strong increase in demand for capital from the first month of the year. According to the market analysis department of SSI Securities Company, with the prospect of a full reopening of the economy in the coming period, the demand for credit will increase sharply. In addition, inflationary pressure is gradually building, so interest rates on deposits are likely to start rising in the second half of 2022. interest on savings may increase slightly. 0.2 to 0.25% per year relative to the current level of interest rates.

Many recovery plans

Despite the increase in interest rates on deposits, many commercial banks said that the state had stimulated demand for credit, so banks still have preferential interest rate packages for individuals, as well than companies to invest in production and business activities. However, if the State Bank of Vietnam (SBV) tightens its monetary policy, interest rates on loans will certainly be difficult to maintain at the same level as in 2021.

In the meantime, the SBV says monetary policy aims to support businesses and focus on priority sectors for economic recovery in 2022. Specifically, in 2022 and 2023, through the social development and recovery program -economic, there will be a budget package to support 2% of the interest rates on loans, worth about VND 40 trillion through banks. Currently, the SBV is drafting a decree guiding the implementation of this interest rate support program and consulting ministries, sectors and companies. The decree is expected to be published in March 2022.

Specifically, the draft decree stipulates that the beneficiaries of the interest rate subsidy program include companies, cooperatives and business households in the following sectors: aviation, transport and warehousing; tourism; accommodation and catering services; Education and formation; agriculture, forestry and fishing; manufacturing and processing; software publishing; computer programming and related activities; information service activities. Other files are also supported, in particular the purposes of construction of housing for workers, construction of social housing, and renovation of old apartment buildings appearing on the list of projects announced by the Ministry of Construction. The support interest rate for customers is 2% per annum for loans disbursed from January 11, 2022 to December 31, 2023.

To qualify for interest rate subsidy under the Socio-Economic Development and Recovery Program, clients must apply and be approved by the lending bank at the time of disbursement or at the time of signature of the agreement. ‘loan agreement. It should be noted that the SBV draft also sets out specific principles to prevent political profiteering. In particular, if the relevant bodies and units conclude that the client is using the loan for the wrong purpose, the client is obliged to return the amount of the subsidized money to the bank to repay the state budget. This regulation is assessed to prevent companies from using the loans for other purposes, in particular to invest in non-priority areas, such as real estate and securities.

Commercial banks raise interest rates on deposits, companies face difficulties ảnh 2 Banks are raising interest rates on deposits to attract capital and preparing to increase lending. (Photo: SGGP)

However, some people said that some commercial banks will neglect the support program due to low profits, the pressure of being inspected and having to report regularly to the relevant authorities, and the risk of not being settled.

The head of a commercial bank in Ho Chi Minh City said the most worrying thing for commercial banks today is the settlement procedure for interest rate compensation. The draft decree stipulates that the Ministry of Finance will temporarily provide interest rate compensation to commercial banks on a quarterly basis, the amount of the temporary provision for interest rate compensation being equal to 90% of the sum of money that commercial banks have provided an interest rate subsidy to customers in the neighborhood. “The level of provision needs to be higher, around 95%. Also, settlement terms and procedures need to be more detailed and clear for banks to implement as many cases are eligible for the interest rate support program from 2009 but so far , many banks have not completed settlement,” he suggested. .

Meanwhile, according to a representative of the Vietnam Association of Small and Medium Enterprises, the biggest concern of companies is that they are not eligible to access the above interest rate support program because banks companies said they would not lower the standard for this support. package to ensure safety for them. Meanwhile, currently up to 90% of businesses are facing difficulties, and the health of many businesses has been severely affected or even depleted due to the prolonged Covid-19 pandemic. Consequently, the tightening of credit conditions will make it very difficult for companies to access the support system.

By Nhung Nguyen – Translated by Gia Bao

Savings, foreign currency market and cryptoassets in Cuba Fri, 25 Feb 2022 23:18:58 +0000
A Caribe (State) chain store in Cuba

Very few Cubans have enough savings to capitalize them in Cuban currency, either in CUP pesos or MLC (magnetic USD).

By Miguel Alejandro Hayes Martínez (El Toque)

HAVANA TIMES – The structure of citizens’ consumption of goods and services changed after World War II. These changes were quickly reflected in economic theory. This is seen in the permanent income hypothesis.

According to this theory, consumption is explained by two sources: personal income and loans or advances. In other words, a person lives off his hard work and the debts he incurs (on his current work and an advance on future work).

This is not the case for people whose personal income covers their needs. The sectors whose income allows them to satisfy certain levels of consumption and which have a “little remainder” have savings. Meanwhile, public policy tries to capture these savings, as a source of investment, according to the old economic maxim: savings = investment (there are also people who use loans to invest, and they are also subject to public policy interest, but I’ll just focus on savings in this article).

Citizens who have savings have several options when it comes to investing their money. The classic option is to deposit these savings in the bank, and after a period of time they will earn interest, or these savings can be given as a direct investment, by buying shares in a company (the right to take a share of the future profits of a company) on the financial market.

The financial market is the place where savings go in exchange for future profits, on the one hand, but on the other hand, it also involves the promise of profits in exchange for financing. Depending on which offers more income, depositing money in a bank or buying stocks, which means taking a bet, a decision is made (this may include advice from money managers, financial advisors, etc. ).

Inflation is a variable also present in the financial market, and it must be taken into account because the money of today will be worth less tomorrow (but I will not discuss this variable here).

A new market has recently appeared, which represents potential profits for those who have savings, just like the financial market. This is the cryptoactive market.

The Cuban financial market

In Cuba, loans are not systematically granted to consumers, by banks or businesses. As a result, loans or advances are not a significant factor in consumption, historically speaking, and Cuban citizens have fewer tools than other societies to cover their expenses.

Add to that the fact that the minimum wage in Cuba is not enough. One could say that wages below 4000 pesos (the peso is 25 x 1 USD officially but not available in banks and on the street the rate is 100 pesos for $1.00) is not enough to live a decent life , in general. Public sector wages are therefore not the variable covering all consumption. Most government employees are in this situation.

However, about a million workers work independently, there are remittances, jostling… In addition, several generations cohabit in the average Cuban household, which explains the more complex structure of consumption, instead of the theory of the permanent income hypothesis in its pure sense.

Given the above, a partial conclusion is that Cubans who have no salary, plus a hustle, plus remittances, with a little left over, have no savings to decide where better to invest. this. The majority are trapped in the frantic race for survival: household savings are very low.

But in Cuba, there are also people who have money. A minority have enough to think about how to add value to it. This minority could decide to place their savings in the bank (while waiting for an interest rate to capitalize their deposit, read here: profit) or to turn to the financial market.

Although Cuban banks offer interest rates, citizens who have money do not go to the bank to keep it safe or, rather, they do not deposit a large sum of money in the bank.

They also don’t go somewhere to buy shares (or rights to the company’s profits) so that others have funding, because that doesn’t exist here. This activity between private actors has not been legalized in Cuba, nor is there a private business structure ready for it; Moreover, this type of market operation does not take place between private players and public players. There is simply no traditional and official financial market in Cuba.

Likewise, very few Cubans have enough savings to capitalize them (and they want to) in Cuban currency, whether in CUP pesos or MLC (which only exists on magnetic cards). There are no funding opportunities. In other words, the few wealthy people in Cuba (who can save money to spend on something other than consumer goods) have their savings in foreign currency, outside the country if possible (where banks offer interest rates), in works of art, in other valuable assets such as property, but never in CUP or MLC. It is always better to save your money in a currency that has international support and stability, than in a currency that does not. I don’t need to explain why the Cuban currency is weak and undervalued.

Well, even if savings are considered a classic source of financing investments, for savings to act as such, they must find investments in the local economy that are much more attractive than in a foreign economy, which begins with the currency in which this savings first takes shape. Therefore, for an economy to capture savings in the form of investments, it needs a strong and reliable currency. This is not the case for the Cuban currency. There are no funding sources.

On the demand side, there is no regular and stable framework where a group of financial organizations can come together and grant the right to share in the profits, in exchange for funding. There is no funding request.

Without supply and without demand, there is no financial market, in effect (regardless of isolated, illegal and secondary operations from a statistical point of view).

Another partial conclusion that we can draw is that, in the Cuban case, whether there is inflation or not, the traditional relationship that the economy forges between savings and investment has no way of forming with the source and magnitude of Cuban income, just as if there were no way to open up a landscape for a financial market; this correlation therefore implies a zero economic connection in a systemic way.

Consequently, the behavior and future of savings are indifferent to the exchange rate offered by the bank, or “financial market”, whether there is inflation or not.

Cryptoasset market

Despite a non-existent financial market in Cuba, the cryptoasset market is gaining ground.

The volatility, uncertainty and lack of culture of Cuban citizens in this regard to face this landscape means that larger economies continue to be spared in the aforementioned manner, rather than in the new cryptoasset market.

We must remember that it continues to be a trading space like the stock market, which is not exactly suited for direct participation by anyone spared. As a result, Cuba’s crypto-asset market does not respond to the conventional dynamic it has in other regions: take a chance and hope your money adds value.

Instead, this market in Cuba serves a need and is pretty much a necessary outcome: it helps remittances enter the country, as well as other funds from abroad. Today, having cryptoassets is one of the few options to bring foreign currencies into the country online. As a result, Cubans or their family members abroad buy crypto-assets and then resell them in MLC in Cuba and receive payment in this currency.

So, unlike the normal crypto-asset market, it only appeared to bring money into Cuba so that it could be spent on consumer goods. It is a market where the fundamental nature is to simply reproduce one of its parts, and not to capitalize on it. We have to remember that no one (except reselling companies, which aren’t the majority) wants to have thousands of dollars in MLC, they just want it in small amounts as they go by.

On the other hand, there are people in Cuba who, unlike those who do it to obtain MLC by selling consumer goods, only buy cryptoassets to then resell them at a higher price (the only reason for buying a cryptoasset is the hope that it will be worth more in the future); like people do when they buy foreign currencies in bulk and then sell them for more. This group seeks to make a profit. They use the need to bring MLC into Cuba to buy cryptoassets, then their return to them is higher when their price increases. They discovered a way to profit from their buy/sell.

This is another peculiarity of the Cuban crypto-asset market. While those who intervene, to buy and sell, in other places, hope to increase their yields; in Cuba, only one part seeks to satisfy a need without any profit, while another group seeks a profit.

Rather than being a cryptoasset market, it’s usury with cryptoassets.

The reality is that this market represents an immediate solution, but its structural price creates a bubble; it is therefore not a systemic solution, it is not viable for the majority of Cubans and it will only last for the duration of the bubble.

Learn more about Cuba here on Havana Times

BoG urged to regulate commercial bank interest rates to reduce cost of credit Wed, 16 Feb 2022 14:15:16 +0000

Rising interest rates in the money market

Rising interest rates in the money market

Reduce domestic borrowing, Dr Peprah in government

Banks should focus on lending to industries

Ghana’s central bank has been asked to cap commercial bank interest rates to reduce the cost of borrowing in the country.

Chief Financial Officer Dr Williams Peprah, speaking to Joy Business, said the Bank of Ghana needs to cap banks’ investments in government securities to create more headroom for businesses.

“Already, we have 50% of our graduates who are unemployed because there is a lack of liquidity in the country. And what we can do as a country to remedy this situation, in my opinion, we should cap the operations of commercial banks in terms of interest and profits that they generate.

“I know that commercial banks need to increase their shareholders’ net worth by charging more interest, but we should be able to push our commercial banks to focus on lending to industries. I will therefore recommend that central banks advise that the portfolios of commercial banks be examined.

Dr Peprah advised the government to reduce its borrowing from the domestic market to enable businesses to access funds to expand.

“The government needs a lot of money to operate and what the government is doing and what is happening is accepting higher interest rates so they can entice investors to invest in government bonds. But the impact of this situation is that it will increase the cost of doing business in the country, especially with regard to the cost of production. Also, you see banks not giving money to production entities, but rather investing in government bonds.

“The government must reduce its borrowing. It needs to find innovative ways to increase income to alleviate the cost of credit,” added Dr Peprah.

The latest treasury bill auction results from the Bank of Ghana showed that interest rates on short-term financial instruments increased slightly.

Even if the government says it wants to keep interest rates low, it is now forced to revise its rating by accepting a slightly higher yield for short-term financial instruments.

Rapid Auto Loans now accepts Venmo and PayPal payments through the RA Loans website Tue, 15 Feb 2022 15:00:08 +0000 The Florida-based car title loan company now offers two new, convenient ways for borrowers to make loan payments on their vehicle title loan.

Press release

February 15, 2022 10:00 am EST

Rapid Auto Loans offers car title loans of $300 or more throughout Florida for people facing financial hardship and needing cash fast. Car title loans are alternatives to traditional loans and use the value of a vehicle as collateral. Even better, the applicant has 12 months to pay off their title loan and can still drive their car in the meantime. These loans have helped keep countless Florida residents safe from collections, foreclosures, and utility cuts.

In an effort to make the process even easier, Rapid Auto Loans is delighted to announce that it will now accept two new payments for loan repayment: Venmo and PayPal. The price remains the same for any online payment. Simply login to the account and use all connected accounts to make a payment. It does not create any additional work for applicants and does not limit other payment options such as checks, debit cards, or using Walmart’s MoneyCenter or at a local 7-11 store with their Bill Pay services.

“We are always looking to improve the customer experience and are working on a customer platform to include an app in the future,” said Vana Geradi Ross, chief operating officer of Rapid Auto Loans.

To apply for a car title loan with Rapid Auto Loans, all the applicant needs is a driver’s license, the vehicle title being used as collateral, proof of insurance, and to complete a car title loan application. car in person or online.

Additionally, a title search is performed to ensure that there is no existing lien on the vehicle used for the loan. If there is a co-owner of the vehicle, he must also be present to sign the car title loan.

The philosophy of Rapid Auto Loans has always been to help people access funds quickly and as easily as possible. Adding Venmo and Paypal as payment methods is just another way the company is doing this.

About fast car loans

Rapid Auto Loans is a South Florida-based car title lending company with offices across the state. Unlike other title lending companies, borrowers have a 12-month repayment plan with competitive interest rates. Applicants do not have to rely on income verification or a credit score to determine eligibility for a car title loan. To learn more about fast auto loans, visit or call 954-960-7099 to speak with a customer representative.


Source: Quick Car Loans

Title Loans vs. Payday Loans: What’s the Difference? Mon, 14 Feb 2022 09:50:58 +0000 If you’re trying to decide if payday or traditional title loans are better can be compared to asking what disease is the most effective one to treat in winter. Both loans are subject to usury rates of interest as well as terms that are not ideal and can be a clever approach to collect. One of the primary distinctions between a traditional title or payday loan is how much you are able to take out and the amount of interest per loan as Bridge Payday (for Apply Online.

They generally have low-interest rates, for instance, the 300-percent annual rate (APR) in comparison to $400 percent payday advances in the case you declare it to be an ideal. However, they also come with higher penalties for late payment, as the lender can be able to take the title of yours.

Title loans generally permit you to take out loans at least 50% the vehicle’s value, usually up to 5500 dollars. However, some lenders are able to go higher depending on the car. They also permit borrowers to borrow an amount of at least $10,000. 1 Payday lenders typically allow for loans as little as a couple hundreds of dollars.

Payday Loan

Payday lenders can provide cash loans in exchange for a postdated check, which is which is usually due on the next payday. Checks are the entire amount of the loan, as is it’s a finance charge. In this scenario, let’s say you write one for $115 and receive the loan amount that is $100. If you get an installment loan with a duration of two weeks, which is pretty standard for loans and loans, this 15 cent finance charge works out to the equivalent of a rate of 400 percent. This assumes you repay the loan incompletely.

If your postdated check is not accepted by your bank, and you do not take the necessary actions to pay the check by the due date, the lender converts your loan to the two-week time frame. 2 The lender could also charge the additional finance charge and typically assesses an additional late fee or penalty. In the scenario of a rapid turnaround, there is a chance that you’ll be in the situation of paying many times the amount you initially paid.

Many payday lenders are geared towards people with low incomes who need the cash. Often, their offices are located in poor locations, but they’re generally not. It is possible to avoid the necessity to visit their offices by searching for the lender on the internet, however, doing this exposes you to greater risks. Certain payday sites are frauds that are designed to gather private details regarding you.

In certain states , there are laws adopted to require payday loan companies to provide extended repayment options for those who are in financial straits and are unable to pay back their loans. 3 These extended repayment programs that are approved by the state have you pay back the balance due and you’re not obliged to repay another loan, thus perpetuating the cycle of debt and fees that continues.

Title Loan

Title lenders offer short-term loans that are secured by your vehicle’s title the collateral. The lender assesses the value of the vehicle and will lend up to a certain amount generally 25 to 50. The amount for a loan with a title could be greater than payday loans and could exceed $10,000. The most common duration of the term “title loan” is 30 days with the average rate of interest being about 25. This means that the typical title loan APR will be about 300 percent. 1

Like the traditional loan for payday, these title companies have the highest fees when they fail to repay the loan on time. If you’re lucky, the lender may provide you the option of rolling it over into an additional 30 days and charge a fresh finance charge and usually a penalty that is in addition to the. 1 If you’re not fortunate, the lender might take possession of your vehicle and then offer it for sale to pay for the loan.

The procedure of obtaining an auto title loan typically requires you to appear in person, as the lender will determine the worth of your car. Title lenders that have mobile locations are readily available but usually, they cost an additional fee for going directly to your home.

Special Beacons

The distinction between one and the other as a matter of “better” is difficultto determine because both payday and title loans can benefit from an already difficult financial situation, and even worsen this. Payday loans are more tolerant of the possibility of losing your property, while title loans are a bit lower in the rate of interest (though they remain high and extremely high) and can be utilized to pay for bigger loan amounts.

If you’re experiencing an unexpected expense and you’re short of funds, the most efficient options to raise money are selling items you don’t require in the present and soliciting your employer to grant you an advance on your salary or, if feasible, you can use a credit card.

Although credit cards are often given the negative press for their high rates of interest, they’re just a tiny portion of what you’ll end up have to pay for a cash advance or an unsecured title loan. Furthermore, many credit cards don’t have any fees in the event that you repay them within 30 days.Compete for free with $100,000 of Virtual CashPut your abilities on the trading market to test by using our free stock Simulator. You will be able to compete against thousands of Investopedia traders and prove yourself your own record trading in a virtual environment before you take on your own money. Create trading strategies so that when you are ready to begin trading in real life, you’ve acquired the knowledge you require.

Everything you need to know about getting a title loan Mon, 14 Feb 2022 09:46:00 +0000

If you’re looking to get a title loan, you need to be ready for anything. From underwriting to loan terms, it can be difficult to know exactly what you need to know to get the best deal.

Getting a Title Loan – The Basics

A title loan is a type of short-term personal loan with flexible terms. It is commonly used for emergency financial situations, such as car repairs or unexpected medical bills. For these types of loans, the borrower uses their car title as collateral.

These types of loans are also more common in areas where other types of traditional lenders may not provide the requested loan amount.

In this article, we’ll go over what you need to know about getting a title loan and the best way to get approved fast.

How to take out a title loan

One of the most important decisions you will make when considering a title loan is underwriting. You need to know how much you can borrow and how much your collateral is worth.

If your title is in good condition, it is usually worth between $42,000 and $44,000. To calculate your car’s value, you’ll need to know its average trade-in value from sites like Kelley Blue Book.

Also, if you have liens on the car, it may not be worth as much as an unencumbered vehicle.

Before applying for a title loan, check with your lender for the current market value of your car so you can adequately underwrite and understand the terms of the loan.

Types of title loans

Title loans are loans secured against the title or lien of a car. They are used for short-term cash needs, such as emergency bills and vehicle repairs.

There are two types of title loans: secured and unsecured. The difference is that you don’t give the lender any collateral in exchange for the loan with an unsecured loan (like a car).

With a secured loan, you provide collateral in exchange for the loan. For example, you could have your bank or the title of your vehicle as collateral instead of giving your car as collateral.

Another difference between secured and unsecured loans is that you don’t need to pay interest, whereas with a secured loan you will have to pay monthly interest on the amount owed until it is due. refunded. Often customers are confused by these terms because they’re often used interchangeably in conversations about securities lending.

Terms of a title loan

The terms of a title loan are important, so make sure you know the basics. Below is a list of the most important terms you need to know before getting a title loan.

Fees and taxes

It is important to note that there are two types of fees associated with title loans: loan origination fees and monthly service fees.

The purpose of the loan origination fee is to cover the costs of underwriting your loan, including third-party verification of your income and assets, credit checks, collections, and other steps. The interest rate for this type of loan is variable but usually starts at 1%.

The monthly management fee is a flat fee designed to cover the costs associated with managing your loan. These fees vary by state and can be as low as $1 or as high as $30 per month. Therefore, it is essential to research a lender to know what you will pay for a title loan.

Deadline for title loans

The time to obtain a title loan can vary depending on the lender. It takes around 24 hours to get a loan most of the time. However, some lenders may take a week or two to approve your application.

This is because a lender has to do more underwriting and research to make sure you are eligible for the loan.

The last thing they want is for someone with bad credit to get a loan and not be able to pay it back. That’s why it’s essential to know what your options are before you go to your local bank or lending institution.

To find out if your local lender offers title loans, call them and ask them about their interest rates, terms, and other loan options they offer, such as payday loans or loans with mortgage protection. overdrafts.

Interest rate and term of the loan

Title loans are short-term loans that can range from a few weeks to several months. The term of the loan will depend on your credit score and other factors, so you need to understand what your options are.

Interest rates on loans typically start at 30%, but can go as high as 60% depending on your credit score and other factors. This means you could end up paying $600 for a $500 loan if you don’t repay the loan on time.

The interest rates you pay will depend on the amount of money you borrow and the term of the loan. However, it is important to note that interest rates are not fixed for different borrowers, as lenders use risk analysis software when taking out a title loan.


Title loans are an alternative to traditional loans because they allow you to borrow money without having to post collateral. If you are considering a title loan for any reason, consider the risks and benefits before you begin the process.

Kuwait’s Zain Annual Revenue Drops 6.6% Due to Currency Devaluation Thu, 10 Feb 2022 17:40:14 +0000

LONDON: Britain’s economy shrank less than expected in December when the surge in omicron COVID-19 cases prompted many to work from home and avoid socializing over Christmas, but analysts have warned that the surge in inflation would slow the recovery in 2022, according to Reuters.

Gross domestic product in December fell 0.2% from November and was 6.0% higher than a year earlier, the Office for National Statistics said.

Economists polled by Reuters had forecast a monthly decline of 0.6% for the world’s fifth-largest economy and output 6.3% higher than a year earlier.

The economy grew 1.0% for the entire fourth quarter, the same rate as the previous quarter.

“Despite the setback in December, GDP grew robustly in the fourth quarter as a whole, with the NHS (National Health Service), couriers and employment agencies all helping to support the economy,” he said. said ONS economist Darren Morgan.

GDP in December was in line with its February 2020 level, just before the pandemic hit, while output in the fourth quarter as a whole was slightly lower than in the fourth quarter of 2019, the last full quarter before the pandemic.

November’s monthly GDP growth rate was revised down to 0.7% from a previous estimate of 0.9%.

COVID-19 infections in Britain peaked at the start of the year but have since fallen sharply, and the Bank of England last week forecast output, measured on a quarterly basis, would return to its pre- -pandemic by the end of March.

The Bank of England sees greater headwinds due to rapidly rising inflation, which is expected to peak at a 30-year high of around 7.25% in April, when a 54% increase in tariffs home energy regulations will come into effect.

“The UK economy faces a significantly weaker 2022 as the crippling burden of rising inflation, soaring energy bills and rising consumer and business taxes dampen activity, despite a temporary boost.

of the lifting of Plan B restrictions,” said Suren Thiru, head of economics at the UK Chambers of Commerce.

The central bank has raised interest rates twice since December – the first consecutive rate increase since 2004 – and financial markets are forecasting rates of 1.75% by the end of this year.

Economic output in 2021 as a whole rose by 7.5%, the strongest since the ONS began its records in 1948 and the fastest since 1941, during the Second World War, using data collected by the Bank of England.
Production fell 9.4% in 2020, the biggest drop since 1919, the year of demobilization after the First World War.