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  • AirAsia seeking govt loan

    AirAsia seeking govt loan

    Airasia may have enough cash to last them for most of 2020 but it is currently seeking out a loan from the Malaysian government to cushion the impact from the challenging economic environment.

    The low-cost carrier’s chief executive officer Tan Sri Tony Fernandes(pic) said there was no need for bailouts and what most airlines were looking for were loans.

    “We think the cash will last us for the most part of this year and when the sales return, then we’re okay.

    “It’ll be great to get a loan as well and we’re working on that with our government. We think liquidity is available in Malaysia and Thailand, ” he told Bloomberg Markets in an interview.

    And amidst the tough environment that airlines are operating in, Fernandes remained optimistic, adding that AirAsia was lucky to have restructured its business a lot and moved towards the digital end.

    He also said the airline’s cost structure is robust enough and the group is restructuring further.

    He admitted that the coronavirus disease (Covid-19) pandemic was currently the worst crisis he has ever been through.

    “We have a lot of ideas to get going again.

    “It’s going to be an uphill slog but we remain optimistic. It’s always better to have more cash.

    “We have enough at the moment but we’ll be very happy to raise some.

    “And it’s about getting our planes flying again, that’s the most important thing right now.

    “Growth will come later, ” he said.

    Fernandes also said that AirAsia had made its representations to the government and he was sure that something would come out.

    “Tourism is 15.8% of the gross domestic product (GDP) and AirAsia itself is 1.8% of that GDP.

    “So we’re sure our suggestions will be listened to, ” he said.

    On its non-airline businesses such as e-wallet, F&B and cargo, Fernandes said the businesses were doing very well and the beauty was, they did not burn a lot of cash on that side.

    He added that they were far from others but the challenging environment currently might give them the chance to catch up.

    Asked about the talks of a merger between AirAsia and Malaysia Airlines, Fernandes said he was not aware of it as AirAsia was just focussed on getting themselves in order as he had never looked at mergers and acquisitions as a solution.

    “But at this point, we’ll keep all options open, but it’s not being discussed at the moment.

    “I think it will be very silly of me and the board to close all options, ” he said.

    On the long haul carrier AirAsia X Bhd, Fernandes said it was doing very well over the last fourth quarter and the beginning of January prior to Covid-19.

    He said it was rationalizing its fleet and most of AirAsia X’s flights have become medium-haul.

    “We’re changing the fleet, we’re bringing down routes to shorter distances and we think we’ll be beneficiaries in some ways because people want to save some money.

    “When we return, a low-cost product would be more viable and we think in the immediate future, travel will be very regional and won’t be cross-continental so we think we’re in a good spot, both AirAsia and AirAsia X, ” he said. Asked if there were any considerations for AirAsia to switch from Airbus’ A330 to Boeing’s 787, Fernandes replied no, stressing that AirAsia has an “interesting relationship” with Airbus and it has a large order book with them.

    “Whether its Boeing or Airbus, I can’t see anyone taking new planes at least for a while. I don’t think any airline is looking at growth right now.

    “The airline industry has to recover, numbers have to come down and business models will have to change. The world is changing but we’re prepared. You can put your head in the sand and cry or you can get up there and do something, ” Fernandes said

  • OCBC Joins Others To Provide Car Loan Approvals

    OCBC Joins Others To Provide Car Loan Approvals

    OCBC customers can now apply and get approval for car loans within 60 seconds, following similar moves made by two other local banks.

    The faster approval process is made possible due to leveraging Singapore’s national data repository, MyInfo, and the bank’s real-time KYC (know your customer) and credit assessment system. The lender said its latest digital solution will cut the hassle of filling up hard-copy forms, simplifying a process that traditionally takes a few working days.

    Not only is the (conventional) car loan application process time-consuming, but customers also have to share sensitive personal information such as income details with the sales representative. On top of that, approval by the financier may take a day or even a few days on a case-to-case basis, the bank said in a statement.

    In the automotive industry, around 95 percent of car purchases and car loans are completed with the help of car sales representatives, and these representatives along with their customers typically need to complete a considerable amount of paperwork.

    With the new process, customers need not share sensitive personal details with a third party under OCBC’s new car loan approval process. Instead, they will key in their personal details online using their own devices.

    In July 2018, United Overseas Bank (UOB) launched what it says is the fastest digital loan solution for car buyers in Singapore, and announced a tie-up with Carousell, an online classified ads marketplace. Similarly, DBS also leverages on MyInfo to simplify the process of applying for car loans on their website.

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  • Myanmar Secures First Green Loan from Singaporean Banks

    Myanmar Secures First Green Loan from Singaporean Banks

    Singaporean banks continue tapping into the growing sustainable finance market with the latest $44 million loans secured by Burmese developer Shwe Taung Group – the first in the country.

    Sole green loan advisor OCBC provided nearly $30 million with the remaining secured from UOB through the two Singaporean lenders’ Yangon branches. The $44 million loans will be used for a mixed project that includes offices, a shopping mall and the Pan Pacific Hotel.

    Green features in the project include energy-efficient systems that lower consumption such as double-glazed glass windows rooftop solar panels. The features are expected to collectively reduce energy consumption by 15-20 percent, according to a statement.

    The loan brings OCBC slightly closer to its target of constructing a S$10 billion ($7.2 billion) sustainable finance portfolio by 2022. The bank has been on a global green lending spree issuing loans for projects ranging from property development in Hong Kong to hybrid bus fleets in Australia.

    Green financing is gathering momentum across the region as companies embrace the sustainability agenda and find support in driving climate change within their businesses and industries, said Linus Goh, head of global commercial banking at OCBC which has over 60 years of history in Myanmar.

    We believe that this landmark transaction signals an important shift towards sustainability in the country at this crucial stage of economic development, and we hope it will spur other businesses to join us in this journey.

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  • Vietnam tightens consumer loans

    Vietnam tightens consumer loans

    Vietnam has tightened rules on consumer loans, requiring a progressive decline in their ratio in the coming years.

    Cash loans cannot exceed 70 percent of a finance company’s total loans for consumer durables starting 2021, according to a decree issued recently by the State Bank of Vietnam (SBV).

    The ratio will drop to 60 percent in 2022, 50 percent in 2023 and 30 percent in 2024.

    Finance companies can only disburse cash loans for customers without bad debt records with the National Credit Information Center under the central bank. The decree is set to take effect on January 1, 2020.

    Competition has intensified in the consumer loans division as new players enter the market. Vietnam had very few finance companies in 2015, but as of June this year 16 firms had received permission to operate, not counting alternate lending and pay-day loan platforms, SBV data shows.

    FE Credit, the biggest player so far, accounts for 47.3 percent of the market, followed by Home Credit with 16.9 percent and HD Saison with 10.1 percent, according to financial data provider FiinGroup.

    However, finance companies’ revenue growth has been slowing down, from 87.4 percent in 2015 to 15.3 percent last year, it said.

    Outstanding consumer loans amounted to 19.7 percent of Vietnam’s total outstanding last year, up 3 percentage points from 2017, FiinGroup added.

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  • Lazada to offer installment credit with AsiaKredit in Philippines

    Lazada to offer installment credit with AsiaKredit in Philippines

    Lazada Philippines customers can now buy goods online and pay by installments.

    Called eShopaLoan, the service targets the increasing population of middle-class Filipino shoppers offering monthly installment options for purchases made via Lazada’s platform.

    Consumer loans range from PHP4000 to PHP20,000 (US$77 to $384) over a six-month period. EshopaLoan finances products within the PHP 5000 to PHP 50,000 price range. To apply for eShopaLoan service, Lazada customers can install the AsiaKredit pera247 app and fill out the application.

    “Our partnership with Lazada Philippines marks the beginning of many exciting and transformative retail partnerships we hope to embark on to improve access to finance for millions of underbanked Filipinos left out of the traditional financial system,” said Michael Singh, CEO and co-founder at AsiaKredit.

    “The World Bank considers credit as one of four key enablers to drive financial inclusion. The Philippines remains two to five times behind in unsecured consumer loans per capita compared to markets like Indonesia and Malaysia. This is a very positive development for our market.”

    Ray Alimurung, CEO of Lazada said the collaboration with AsiaKredit was a privilege as they shared the same goal in creating a secure and inclusive digital economy in the Philippines.

    Headquartered in Singapore, AsiaKredit currently operates in the Philippines, with plans to enter other Southeast Asian markets. AsiaKredit provides advanced installment-based finance products through a mobile app to Southeast Asia’s half a billion unbanked people.

     

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  • DBS Issues $180 Million Sustainability-Linked Loan

    DBS Issues $180 Million Sustainability-Linked Loan

    DBS has issued a S$250 million ($180 million) three-year loan to real estate group City Developments Limited with interest rate discounts linked to the firm’s sustainability-related performance.

    The loan will be used for general working capital and corporate funding focused on improving CDL’s property quality, performance and method of building.

    Interest rate discounts can be achieved by CDL when it achieves mutually agreed on sustainability-related performance targets including innovations that contribute to the United Nations «Sustainable Development Goals» as determined by an independently appointed expert panel. CDL must also remain listed on at least one «leading global sustainability index.»

    The CDL loan is part of DBS’s ongoing efforts to promote the UN SDGs with this loan aiming to tackle three of the goals: industry, innovation and infrastructure; sustainable cities and communities; and climate action. Elsewhere, DBS has poured S$6.9 billion ($5 billion) into diverse sustainable financing in the last two years to more resource-efficient firms and green industries such as green real estate development and renewable energy.

    DBS and CDL’s move is aligned with ongoing efforts by Singapore’s government to promote sustainability, including in green property development.

    The green financing initiative is a commendable effort given the increasing need to build more environmentally friendly buildings and infrastructure to mitigate the impact of climate change, said Tai Lee Siang, executive director of BuildSG at the Building and Construction Authority.

    In addition to DBS’s loan requirements, CDL itself also pledged commitment to sustainability by achieving «an average of two innovations or new technology adoptions» per year by 2030.

  • 7 Ways to Negotiate Personal Loan Interest Rate in the UAE

    7 Ways to Negotiate Personal Loan Interest Rate in the UAE

    If you are in urgent need of money, a personal loan is the way to go. Compared to credit card finance, etc, personal finance is the best option to go for.

    Personal finance will provide you with a higher finance amount, longer repayment tenure, lower interest rate, etc. That is if you are eligible for it.

    However, if you qualify for personal finance, you will want a lower interest rate on the Finance amount. After all, an interest rate is the additional money you pay from your pocket to the bank. And to get that deal, you will have to negotiate with the loan provider.

    Therefore, we have discussed the factors that will help you with the negotiation process. These factors will help you get a better deal on the interest rate.

    Your Credit Score

    A credit score is like a full-body scan of your financial health. It determines whether you are financially capable of repaying the debt.

    Credit scores are marked between 300 – 900 in the UAE. The greater credit score you have, the higher are the chances of you getting a finance amount. Also, if you have a high credit score, you have better chances when it comes to negotiation.

    We have often mentioned the credit score, but do you know how to maintain a good credit score. If you don’t, here is what you should do.

    To maintain the high credit score, you will have to:

    • Stay within the Credit limit
    • Pay your credit card bill on time
    • Avoid paying the Minimum amount of the credit card bill
    • Always pay your bill in full, if possible
    • Manage your debt

    Additionally, you should always keep an eye on your credit score. If you find any suspicious activity in your account, report it immediately. Negligence or procrastination will only damage your credit score.

    Compare the Personal Loan Providers

    Comparing personal finance providers is essential for your financial health. A little effort and research from your end will ultimately benefit you.

    Lenders that provide the lowest interest rate for personal loan in UAE might not always be perfect for you. Make sure to always compare the interest rate, eligibility, repayment tenure, and the finance amount.

    After all, every financial institution has its pros and cons. Therefore: Research. Compare.

    Your Professional Credential

    If your company is listed with the bank and you earn a high income, it makes you a perfect customer. The financial institutions in the UAE consider customers like you a stable candidate. You represent low-risk factors in the eyes of the lender.

    You can definitely use that factor to negotiate a better deal for the personal loan interest rate in uae. Since the lender is assured of your repayment capability, they will offer a better interest rate to seal the deal.

    Healthy Record of Debt Repayment

    Maintaining a healthy record of debt repayment implies that you have always repaid your debt in time. It helps build trust in you, amongst the financial providers. This will end up affecting your credit score in a positive way.

    If you have an unhealthy record in debt repayment, it will cause hesitation amongst the lenders to finance you. Most financial institutions will end up rejecting your application. Even if your application is approved, you will be offered a high interest rate on personal credit.

    Comprehending the Terms and Conditions

    It’s no secret that most customers skim through the fine print due to its length. And that is a big mistake. It is essential that you read and comprehend the terms and conditions associated with the personal loan.

    Reading and understanding the fine print will protect you against any unpleasant surprises in the future.

    Collateral

    It is true that personal credit is collateral-free. However, the lack of collateral affects the interest rate on personal loan. This is due to the fact that the lenders have no way of recovering if the customer is unable to repay the amount.

    Henceforth, you can offer collateral to reduce the interest rate of the personal credit. If the financial institution accepts the collateral, you can enjoy a much lower interest rate, as there is no risk involved.

    Special Offers

    Finance institutions in the UAE often come up with special offers during the festive season. It is due to the fact that many need financial help during the festive season. These offers can often help lift the burden of the festive season in your pocket.

    The special offers during the festive season would often involve lower interest rates in the UAE. Hence why it can be beneficial for you to go for the personal credit during the festive season, if need be.

    Over to You

    If you use the suggestions given above, it won’t be difficult to get a lower interest on the financed amount. Make the most of your privileges. Use the status of your employment and the credit score to score a better deal.

     

     

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  • Standard Chartered in Hiring Push to Grow Private Banking

    Standard Chartered in Hiring Push to Grow Private Banking

    The bank is on a recruitment spree in Hong Kong and Singapore as it hopes to increase its private banking assets by 50 percent to $100 million in the next three to five years.

    The U.K.-based bank will be hiring 30 to 40 private bankers per year in Hong Kong and Singapore, where it derives most of its revenue, to bolster its 300-strong team of relationship managers over the next two to three years as it hopes to grow its private banking assets to $100 billion from $65 billion currently.

    That makes us meaningful internally for the group, that makes us a meaningful player in this landscape. Hitting $100 billion can give us credibility internally, help us to attract talent, Standard Chartered’s global head for private banking and wealth management, Didier von Daeniken, said in an interview.

    Competition for the region’s growing number of ultra-high net worth (UNHW) and high net worth individuals is stiff. Standard Chartered’s $65 billion in private banking assets trails global powerhouses UBS’ $2.3 trillion and Credit Suisse’s $770 billion, but the unit plans to leverage the bank’s corporate and institutional clients in Asia and other emerging markets where it has existing banking networks to hit the $100 billion mark, the report noted.

    Standard Chartered’s private banking business targets individuals with at least $5 million in investable assets. The unit makes up for only 3.8 percent of Standard Chartered’s total profit before tax for the first half of 2019, Reuters reported. But $100 million, this represents a marked improvement from a $5-million loss for the same period the year before.

  • Papua New Guinea Launches UBS Loan Investigation

    Papua New Guinea Launches UBS Loan Investigation

    Newly elected Papua New Guinea Prime Minister James Marape announced the launch of a full investigation to confirm if the government had violated its own rules regarding a 1.2 billion Australian dollar UBS loan.

    The Swiss bank extended the loan (now valued at $847 million) in 2014 to purchase a key stake in energy firm Oil Search while the current prime minister Marape was then its finance minister.

    According to Marape, the investigation was not only about «looking at leaders» but to reveal the fuller scope of the entire transaction which he believes extends beyond Papa New Guinea.

    The scope is not only confined to investigations in this country, he said.

    UBS transactions have taken place in one or two other jurisdictions outside of our country and so the train of events will be followed by this inquiry… once concluded will put finality to the matters.

    Former Prime Minister Peter O’Neill, stepped down due to loss of confidence in his leadership in May this year. Sarape was elected and sworn in one day after, having since made bold statements including his goal to turn Papa New Guinea into the world’s richest black Christian nation.

    Under the new leadership, the government then sold its Oil Search stake and repaid the loan.

    Prior to Sarape’s investigation, the loan had already been flagged by the country’s Ombudsman Commission for breached budget guidelines and Swiss regulator FINMA had also claimed to have contacted UBS in March about the matter.

    The country deserves the fullest scrutiny as to what has happened, Sarape said.

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  • DBS Inks Sustainability-Linked Loan in Indonesia

    DBS Inks Sustainability-Linked Loan in Indonesia

    The export financing sustainability-linked loan is the first of its kind in Indonesia. DBS Bank Indonesia has signed a sustainability-linked export financing loan with wooden door manufacturer PT Sumatera Timberindo Industry (STI), the bank said in a press release on Wednesday.

    DBS said the loan is evaluated based on a target of obtaining timber and raw materials from sources certified by the Forest Stewardship Council (FSC). Its interest rate will be reduced for each shipment of raw material that has an FSC certification that the raw material is responsibly sourced.

    STI is a FSC-certified company focused on responsible sourcing, manufacturing and exporting of sustainable-certified products. According to director Hidayat Ang, STI’s synergies with DBS in advancing sustainability support the company’s long-term growth and empower the local community to do good for the environment.

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  • Vietnamese banks find out car loans not low-hanging fruit

    Vietnamese banks find out car loans not low-hanging fruit

    Vietnamese banks are struggling to recover overdue car loans since many customers mortgage vehicles bought using bank loans. Dao Minh Tuan, manager of the debt recovery department at private lender Vietnam International Bank (VIB), said 50 percent of non-performing car loans are because of this.

    Borrowers are supposed to get the bank’s permission before pawning a car, but most don’t, which makes it difficult for the bank to repossess the car, he said.

    “Pawn shop owners decline to meet our staff while our customers are unreachable. As the banks do not technically own the car, we have trouble recovering the debt.”

    Since banks normally lend 80-100 percent of the cost of a car, getting the cars back by paying off pawnbrokers would cost too much, he said.

    “The last resort would be to sue the customer, but this will take a long time and cause damage to both sides.”

    Banks also have to pay a commission to car dealers of 0.7-1 percent and offer competitive interest rates of 7-9 percent in the first year. All this means, in a competitive, crowded segment, banks are unable to earn much.

    A banking expert who asked not to be named said: “Banks which want to maintain high credit growth often focus on increasing the amount of car loans, not quality.”

    Those focused on this segment are usually banks which are not competitive in other areas with higher interest rates, such as real estate, the expert said.

    The auto loans segment has seen average growth of 38 percent in 2012-2016, according to data from Viet Capital Securities VCSC.

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  • Singapore Fintech Launches Platform for Personal Loans

    Singapore Fintech Launches Platform for Personal Loans

    The new digital platform, which offers lower lending rates and encourages prompt debt repayment, could compete with banks’ personal loan facilities. Singapore fintech company Credit Culture has announced the launch of its moneylending platform, making it the first licensee from a pilot by the Ministry of Law for new business models in the personal loans industry, to do so.

    Promising transparent loan terms with no late interest and no early repayment fees, Credit Culture says its platform allows 24/7 access to personal loans with monthly interest capped at 1 percent, disbursed within only 10 minutes.

    We have seen how inefficiencies have affected the industry for years and the move to use technology to improve the system is long overdue. This is a win-win situation whereby improving the ecosystem, customers will be able to gain better access and management of their finances, said Edmund Sim, founder and CEO of Credit Culture.

    New Models for Loans

    Credit Culture’s credit scoring and application process is simpler, cheaper and more transparent than the manual processes offered by traditional banks. Its platform is built on the Amazon Web Services (AWS) cloud and taps on MyInfo, the central data repository of Singapore citizens’ information to populate loan applications.

    A proprietary credit-scoring engine then uses this data to assess the creditworthiness of a customer instantly. Apart from lower backend costs, the AWS approach is also scalable depending on customer demand, allowing the firm to grow quickly and roll out in new markets with ease.

    The rates charged by Credit Culture are significantly lower than those charged by banks on overdue credit card payments, which average 24 percent per annum, or more than 2 percent per month. However, the effective interest rate could turn out higher than personal loan rates offered by some banks.

    Ministry of Law Pilot

    Credit Culture was founded by a group of banking industry veterans with knowledge of the consumer credit and technology space. In December 2018, the firm was among six selected by the Ministry of Law as part of a pilot to professionalize the personal loans space in Singapore.

  • EON and Aurora unveil special Songkran promotions Offering 10 months of 0% interest on gold and diamond loans

    EON and Aurora unveil special Songkran promotions Offering 10 months of 0% interest on gold and diamond loans

    Ms. Saranya Pipoppinyo (middle), Vice President of Marketing at AEON Thana Sinsap (Thailand) Public Company Limited, together with Ms. Lapatlada Ruetivarangkoon (left), Vice President and Mr. Anirut Srirungthum (right), Vice President Business Development of Aurora Design Company Limited unveils two summer promotions for AEON Member Card and AEON Credit Card holders through the AEON Happy Pay and AEON Happy Plan services. The first promotion is 0% gold loan installment for up to 7 months, starting from April 12th-14th, 2019. For the second promotion, customers will be able to take on a “Diamond loan” with 0% interest rate for up to 10 months, starting today until 30th April, 2019 at all Aurora Gold and Jewelry branches nationwide.

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  • Vietnam borrows $188 million to boost connectivity in the north

    Vietnam borrows $188 million to boost connectivity in the north

    The Asian Development Bank will lend Vietnam $188 million to upgrade roads towards improving connectivity in northwestern provinces. Under an agreement signed by ADB and the Ministry of Finance Tuesday, the loan will be used to upgrade of 198 kilometers of roads that connect several towns and districts in northwestern provinces of Lai Chau, Lao Cai and Yen Bai with the Noi Bai – Lao Cai Expressway.

    The 265-kilometer expressway is part of the Greater Mekong Subregion (GMS) Kunming-Hai Phong Transport Corridor that connects Hanoi with northern localities in Vietnam and Yunnan Province in China.

    Some of the road upgrades will create economic opportunities for some of the poorest people in the project area, the bank said.

    “The project aims to expand the benefits of the GMS corridors to the northwestern provinces,” said Eric Sidgwick, ADB country director for Vietnam.

    “The improved connectivity will not only boost border trade, private investment and job creation in the region, but also provide better access to basic social services, such as education, health care, job training and emergency disaster relief for the people of the northwestern provinces, especially the poor ethnic minorities,” he added.

  • KoinWorks Indonesia Announces Investment From Quona Capital

    KoinWorks Indonesia Announces Investment From Quona Capital

    Indonesian peer-to-peer lending platform KoinWorks said in a statement on Monday that it has received an investment from US-based venture capital firm Quona Capital. “We’re very happy we could collaborate with Quona as one of our investors,” said Benedicto Haryono, chief executive and co-founder of KoinWorks. “With the inclusion of Quona among our line of investors, it will further help develop KoinWorks in becoming a responsible peer-to-peer lending firm and continue to innovate and provide a positive impact for society,” Benedicto added.

    Quona Capital focuses on investment in financial technology companies it deems to have potential in facilitating access to financial products. The Washington-based company provides financial access in various regions, including Latin America, Africa, Britain and Asia.

    KoinWorks said in the statement that the collaboration between itself and Quona Capital is based on a mutual understanding that technology has a strong role in improving quality and access to financial access for those beyond the reach of traditional banks.

    The Jakarta-based fintech company, which has 100,000 investors on its platform, is one of the first fintech companies in the country to have obtained a license from the Financial Services Authority (OJK).

    KoinWorks bridges the gap between investors and investees through its online platform and provides unbanked individuals with access to financial services.

    The company focuses on business and educational loans. It won Bisnis Indonesia’s Most Innovative Fintech of the Year award in 2017.