Number of Lenders has Reached at 30 in FLS Participation

By:  06/11/2012
Keywords: Secured Loans, logbook loans, loan against car

Total number of participants has reached at thirty in Government’s Funding for Lending Scheme. It is here to note that 17 lenders have signed on this scheme in last year.

13 lenders who have participated in the scheme at the end of September are banking institutions such as Aldemore, Barclays, Ipswich BS, Kleinwort Benson, Leeds BS, Hinckley & Rugby BS, Lloyds Banking Group, Monmouthshire BS, Hinckley & Rugby BS, Nationwide BS, Principality BS, RBS Group, Virgin Money and Santander. 17 new lenders have participated in the scheme and Tesco and Metro Bank are major participants of this scheme in last month. Other new participants are Arbuthnot Latham, Cambridge Building Society, Clydesdale, Co-operative, Coventry Building Society, Nottingham Building Society, Cumberland Building Society, Julian Hodge Bank, Manchester Building Society, Skipton Building Society,  Mansfield Building Society, Market Harborough Building Society, Newbury Building Society, Newcastle Building Society, Tesco Bank, West Bromwich Building Society and Metro Bank.

There are some terms under the scheme to make lending flexible and affordable for borrowers. Bank of England will lend UK treasury bills to participants for up to four years at lower interest rate of 0.25 percent yearly fee. These are secured money in which participants will secure some property having equity value to BOE. Bank has state that the lenders can the treasury bills for borrowings at rates close to bank rates.

Borrowing amount by each bank depends upon the bank’s existing stock of loans to SMEs and households. Banks can access up to 5% of these amounts. According to reports, Metro bank had £78 million base stock of loans at 30 June to place with the Bank of England whereas Tesco bank has £4.8 billion stock. Banks can use the specific amount for mortgage or business loan types. They can also offer secured loans like logbook loans or bad credit personal loans for business expenses of individuals. FLS will help to make the fund easier for all types of banks.

Keywords: loan against car, logbook loans, Secured Loans



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