Thanachart Bank pushes to build up personal-loan segment again

Category: Personal Loans
Published: Friday, 10 October 2014
Written by Admin
Thanachart Bank has started chasing personal loans again as demand for auto loans, one of its major portfolios, remains fragile.

The bank has attempted to build up brand awareness in the area of personal loans and its Flash cash cards through advertising and social media, pushing the message that people could pursue their dreams.

Thiranard Puangmaha, first vice president of the bank, said its outstanding personal loans were Bt300 billion, higher than its Bt270 billion in credit-card loans, but customers were more familiar with credit cards.

TBank is conducting a social-media campaign focusing on Buakhao Banchamek, a Muay Thai boxer whom the bank considers an icon of dreams coming true.

After building brand awareness for its personal-loan products, the next step was finding a way to approach people and get them to use this service. Therefore, it launched an additional campaign by inviting people write about their dreams, with a chance to win Bt100,000. Ten winners will be chosen by Buakhao.

Thiranard said personal loans were a high-yield product, so the bank considers that it should be active in this category to help sustain yield but also to help diversify its retail-banking portfolio, which mostly depends on auto financing.

Retail banking accounted for 70 per cent of TBanks total loan portfolio of Bt783 billion at the end of the first half of this year.

TBank is the market leader in auto lending, with outstanding loans of more than Bt400 billion, and when this segment was affected by the governments first-car tax-incentive scheme, lenders needed to find strategies to sustain their profitability.

Banks including us have remained more cautious on personal loans because of concerns over the high levels of household debt. Therefore, even though the bank will again become more active in this segment, we still have to careful, she said.

TBanks personal-loan portfolio including cash cards has grown by 9 per cent from a year earlier, compared with 18-19 per cent in 2011 and 2012. She said that the recovery of consumer confidence could help the performance of this category a little, probably managing double-digit growth for the full year. However, the growth figure is unlikely to reach the levels seen in 2011-12.

TBanks Flash products this year are targeted to grow at a higher rate than the overall cash-card market, and Thiranard said the bank was planning to combine its cash cards and personal loans into a single product in an effort to persuade clients to take out personal loans. The new combined product will be launched next year.

Block repays $100K in loans to his campaign

Category: Personal Loans
Published: Friday, 10 October 2014
Written by Admin

PROVIDENCE, RI (AP) -- Ken Block has repaid $100,000 in personal loans he made to his unsuccessful campaign for the GOP nomination for Rhode Island governor.

The repayment was reported in new campaign finance filings made with the Board of Elections. Block, who runs two small businesses, loaned his campaign a total of $720,000 ahead of the September primary.

Block lost the nomination to Cranston Mayor Allan Fung, who got 55 percent of the vote. His campaign listed an outstanding liability of about $1 million in the new filing.

Block also ran unsuccessfully for governor in 2010 under the banner of the Moderate Party, which he founded.

The Republican has said he will remain active ahead of the Nov. 4 election pushing for support for a ballot question on a constitutional convention.

Traditional Lenders Move in on Higher Interest Rate Personal Loans

Category: Personal Loans
Published: Friday, 10 October 2014
Written by Admin

Apparently traditional banks are moving into higher rate and thus higher risk personal loans.  This strategic shift is driven, at least in part, by growing competition from peer to peer (P2P) lending platforms.

The banking industry, while incredibly important in the US, is one of the most regulated industries around.  Banks face an ever-growing amount of rules, regulations and requirements, as the non-stop legislative churning machine also known as Capitol Hill has continued to saddle banks with greater restrictions.  The financial crisis is simply the most recent incentive for politicians to pile on more regulation.  According to a report in, banks are looking to boost profit by looking elsewhere where regulations are not quite as stiff.

In a bid to boost revenue squeezed by new regulations, lenders are turning to high-interest personal loans, a market in which they face stiff competition from upstart rivals.

Traditional lenders pulled back from the loans during the financial crisis, but they are regaining their appetite as tough new rules on mortgages and credit cards have made it harder for them to profit. The rules largely exclude personal loans, making them more attractive. states Annamaria Andriotis from WSJ.

Banks have been growing loan originations at a faster pace.  The bottom was back in 2010; at $26.7 billion for the first half of the year.   This is in contrast to the $62.7 billion in loans during the first half of 2007.  Now things are turning around with originations scaling to $34.5 billion through June of 2014.

WSJ quotes a representative from SunTrust Banks saying that demand for consumer lending never went away. The banks did and P2P lenders quickly filled the space.

Prosper is reported to have originated over $167 million in personal loans just for the month of August.  CEO Aaron Vermut is quoted on the comparison between August 2013 and 2014 stating they experienced a growth of 433%.  Pretty impressive. 

Peer to peer platforms match investors with borrowers and generate risk adjusted returns for just about any type of personal loan.  Investors have quickly moved in seeking far higher returns than delivered in a savings account.  A diversified portfolio of many different P2P loans helps to mitigate risks.  Borrowers, on the other side, are seeking refuge from very high rates typically doled out by credit card companies.  The efficiencies of delivering value to both sides of the equation all on line should be difficult to miss for traditional banks.

Increasing competition for P2P lenders from traditional banks is really inevitable. But the lean approach and low head count should help keep the more agile P2P lenders ahead of the pack.

Turn Your Personal Assets Into Loans for Your Business

Category: Personal Loans
Published: Thursday, 09 October 2014
Written by Admin

A traditional bank loan is not the only funding option for your business. If theres a reason bank loans dont make sense for financing your venture, heres an alternative that may not have occurred to you.

If you have assets like high-end jewelry, art, or classic cars, there's an option to turn any of these into whats called a personal asset loan. Supporters of the idea say it can be quicker and easier than a bank loan, even if you qualify to go the more traditional route. is a provider of personal asset loans. A personal asset loan to borrow against certain high-end assets for business or even personal loans and avoid some of the hassles connected with traditional bank lending.

According to Luxlend Director Paul Greco, these loans often only take a few days to set up. And thats one obvious advantage over a traditional bank loan. The one exception is high-end art, which takes a little longer to appraise. In a phone interview with Small Business Trends, Greco explained:

"When you go to the bank looking for a loan, it's probably not happening. And if it does happen it's probably going to take three to four months. We offer an option that's much quicker and cheaper."

Greco said that the service is primarily targeted at people starting or running small to medium sized businesses. But these asset loans don't require a business plan or even credit, background or employment checks, another reason some might prefer them over a more traditional lending model.

For all these reason, it's much easier to get a personal asset loan than a traditional business loan, provided you own an asset of sufficient value to cover the money being borrowed.

And there are even more advantages depending on a borrowers situation, Greco claims. He says some people choose the personal asset loan to avoid paying interest or removing their own money from accounts where it's working for them.

According to the company's website, the typical value of these loans is between 50% and 80% of the appraised resale value of the asset. Greco says Luxlend works closely with reputable appraisers and affiliates such as Sutheby's and Christies to get the necessary appraisals needed for the loans.

Heres how a basic personal asset loan works. Once an item is appraised and each party agrees to the terms of the loan, the lender takes possession of the asset. The borrower then receives the loan immediately. Upon completion of the loan, the lender returns the asset to the borrower.

Since becoming involved in personal asset lending in 2012, Greco says he's seen some interesting assets. He's worked with people who own yachts, planes, and even the work of famous artists. He's also worked with interesting clients, including plenty of professional athletes, he says.

Typically, Luxlend doesn't lend on items worth less than $10,000, so it's not an option for everyone. There are alo obvious risks since you are essentially putting up valuable personal  assets to guarantee the loan.

But for those who do have some high-end assets, it could be an appealing option, or even the only option given the current state of the banking industry.