The pay day loan is a prosperous industry in the UK. This type of credit against your paycheck is easily available with absolutely no check on your credit history. If used carefully, the loan can be of great help to the borrower in times of emergency.
Benefits of a Pay Day Loan
To overcome a short-term financial crisis, UK residents resort to a pay day loan which you can easily obtain even if you have a bad credit score. Sometimes referred to as cash advances or deferred deposits, the loans are available instantly if you are employed and receive a regular monthly income. By just filling in personal details on an online form, your loan will be approved. The minimum and maximum loan varies from company to company; generally, it is between 50 to 1000 pounds which has to be repaid within a month or so. It’s a quick way of obtaining cash without facing the embarrassment of asking family or friends. Another advantage is that you can use the loan to perk up your bad credit score; this, in turn will help you get approval for mortgages and credit cards from banks for future use.
Plan Well Before Approaching a Lender
Before you approach a pay day loan lender, take some prudent decisions. Firstly, take the loan only if you are in dire need of cash. Never take a loan for a holiday. You should check out several providers and consider the offers. Understand and review the lender’s APR well. Never borrow an amount which is beyond your means of repayment. Always repay the loan on the due date; delaying will only complicate your financial problems. It will result in having multiple loans; if in such a situation, a debt or budgeting advice is recommended. Never overstate your income thinking that you will get a bigger loan; it will affect your repayment schedules and your financial future.
New Regulations for UK Pay Day Lender
Amendments are on the anvil for new rules that will restrict the UK pay day loan lender from taking advantage of vulnerable customers. Currently, there is no limit on the APR that the lenders can charge. But, when the new regulations come into force, lenders would have to freeze the rate of interest for borrowers who are facing financial crisis and would also limit a loan rollover. Borrowers would be given a minimum period of one month to repay the loan. Lenders have agreed to give details of charges and fees on the borrowed amount. The Bill came up because the ‘OFT or Office of Fair Trading’ discovered that lenders were charging very high interest rates on the loans.
Sterling eases to 2-1/2 week low against dollar
By Ritvik Carvalho
LONDON (Reuters) – Sterling eased to its lowest level against the dollar in two and a half weeks on Tuesday, as the strengthening U.S. currency put a brake on gains that had taken the pound to 2-1/2-year highs last week.
The pound has so far been the best performing G10 currency in 2021, up 1.65% against the dollar, although its lead over other currencies is diminishing.
Bets that Britain’s rapid vaccine rollout would underpin an economic rebound boosted sterling as far as 4.2% above its year-end price to the dollar as recently as last week.
However, expectations of a faster U.S. economic recovery and for the Federal Reserve to show greater tolerance to higher bond yields than other central banks have boosted the greenback in recent days.
By 0838 GMT, sterling was 0.2% lower at $1.3897, earlier hitting a 2-1/2 week low of $1.3867. It was flat to the euro at 86.42 pence.
“Momentum in sterling has somewhat eased in the past few days, but ever more encouraging data on vaccination and contagion in the UK should continue to underpin hopes of a faster recovery, and keep a floor under the currency,” ING said in a note to clients.
British house price growth picked up unexpectedly last month, mortgage lender Nationwide said on Tuesday, defying expectations of a slowdown as finance minister Rishi Sunak prepares new budget measures to boost the market.
House prices rose 6.9% in annual terms in February from 6.4% in January, Nationwide said, above all forecasts in a Reuters poll of economists that had pointed to a slowdown to 5.6%. )
(Reporting by Ritvik Carvalho)
Lindt & Spruengli aims for 6-8% sales growth, announces share buyback
By Silke Koltrowitz
ZURICH (Reuters) – Swiss chocolate maker Lindt & Spruengli said on Tuesday it aimed for 6-8% organic sales growth this year thanks to pent-up demand after the pandemic hit its business and made net profit slide last year.
Chocolate makers are grappling with subdued demand as consumers buy fewer chocolates as gifts or while traveling during the COVID-19 pandemic, and Lindt has also been hit by the temporary closure of its own stores.
Net profit fell 37.5% to 320.1 million Swiss francs ($349.53 million) in 2020, the maker of Lindor chocolate balls and gold foil-wrapped Easter bunnies said in a statement.
But the company said it was convinced that the chocolate market, and in particular the premium segment it operates in, would continue to grow in the future.
It said it expected organic sales to grow 6-8% this year and then, from 2022 onwards, 5-7% per year in line with its medium term guidance.
The Zurich-based company also announced a new share buyback programme of 750 million francs from June this year to the end of next year and will pay out a dividend of 1,100 francs per registered share and of 110 francs per participation certificate.
It had paid out an exceptionally high dividend for its anniversary last year.
“Overall, a solid print with cash flow and the announcement of a buyback the main positive surprises,” Kepler Cheuvreux analyst Jon Cox said, adding the outlook was also upbeat, but more or less in line with street expectations.
Lindt & Spruengli had already flagged a 6.1% drop in 2020 organic sales in January. The contraction in sales led its operating profit margin to fall to 10.5%, from 13.2% in 2019.
It said the margin should return to 13-14% this year and then to 15% in 2022.
($1 = 0.9158 Swiss francs)
(Reporting by Silke Koltrowitz; Editing by Riham Alkousaa and Brenna Hughes Neghaiwi)
Asian shares perk up as calmer bonds ease jitters
By Julie Zhu and Koh Gui Qing
HONG KONG/NEW YORK (Reuters) – Asia extended the global rally in stocks on Tuesday as a halt in a recent bond markets sell-off eased investor nerves and lifted riskier assets, although oil prices were on the defensive on fears of slowing Chinese energy consumption.
MSCI’s broadest index of Asia-Pacific shares outside Japan firmed 0.97% while Japan’s Nikkei was slightly down 0.12%.
Australian shares continued their climb on Tuesday, with S&P/ASX 200 index rising as much as 1.05%, its highest since Feb. 19, as a rollout of another vaccine in the United States and optimism over a coronavirus relief package boosted hopes of a quicker global economic recovery.
Chinese blue-chips gained 0.58% in early trade while Hong Kong’s Hang Seng advanced 0.9%, helped by steady and robust demand from investors in mainland China for shares in the Asian financial hub.
China will begins its annual session of parliament on Friday in Beijing, which is expected to chart a course for economic recovery and unveil a five-year plan to fend off stagnation.
U.S. stocks [.N] rallied overnight, with the S&P 500 posting its best day in nearly nine months, as bond markets calmed after a month-long selloff.
For now, all eyes will be on Australia’s central bank, which holds its monthly policy meeting on Tuesday. Analysts expect the Reserve Bank of Australia to hold key rates at a historic low but focus will shift to commentary about its quantitative easing programme.
“There’s everything to like about the rally in EU and U.S. equity markets,” said Chris Weston, the head of research at Pepperstone Group Ltd in Australia.
“Financials outperformed, with 95% of stocks in the S&P 500 gaining on the day,” he said, adding that “clearly investors are seeing the world in a new light”.
U.S. stocks were roiled last week when a sell-off in Treasuries pushed the 10-year Treasury yield to a one-year high of 1.614%. The 10-year yield was edging lower in early trade at 1.4204%. [US/]
However, demand for riskier assets did not slug the dollar, usually regarded as a safe-haven currency, as investors bet on fast growth and inflation in the United States. The U.S. dollar index gained 0.14% in early trade against a basket of currencies to stand at 91.142, within sight of a three-week high hit overnight. [USD/]
The Australian dollar was down 0.25% at $0.77510 ahead of the RBA meeting.
A stronger greenback weighed on gold, and the precious metal was on the defensive at $1,711.4100 an ounce early Tuesday. [GOL/]
The exuberance in risk assets did not help energy markets. Oil prices fell more than 1% overnight after data showed China’s factory activity growth slipped to a nine-month low in February, owing in part to disruptions over the Lunar New Year holiday. There were also fears among energy investors that OPEC may increase global supply following a meeting this week. [O/R]
Brent crude fell 1.27% to $62.88 a barrel, while U.S. West Texas Intermediate crude lost 1.3% to $59.85.
(Reporting by Koh Gui Qing and Julie Zhu; Editing by Sam Holmes)
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