Personal loan up by 0.8% as retail credit declines
Deposit money banks are showing more comfort in assets financing than offering retail loans as personal loans increased by 0.8 percent in November 2020, while retail credit declined by 1.8 percent.
A personal loan according to Forbes Advisor is financing extended by an online or traditional lender that you can use for a range of personal purposes.
Personal loans offer is gaining traction because some lenders give it out at low interest rate. For instance, Standard Chatered offers personal loan at 1.08 percent per month with flexible tenor of up to 60 days.
These loans are fully unsecured with no security required. “We can help you move your loan with another bank to take advantage of our competitive terms,” the Bank stated.
Retail loans according to Kabbage Resources include a vast range of different loans. Personal loans such as car loans, mortgages, signature loans and credit cards all fall into the category of retail loans, but business loans can also fall into the category of retail loans.
The Central Bank of Nigeria (CBN)’S economic report showed that Consumer credit outstanding, at N1.53 trillion in November 2020, rose by 4.3 per cent and 6.8 per cent relative to the level at the end of the preceding period and the corresponding period of 2019, respectively.
The ratio of consumer credit to private sector credit increased marginally to 8.4 per cent at the end of November 2020, from 8.2 per cent at the end of October 2020.
The increase in the ratio was due, largely, to the rise in the volume of loans and advances disbursed to businesses and individuals by other depository corporations.
Bank customers continued to express confidence in the banking system, despite the lingering effects of the COVID-19 pandemic and the recession in the economy. As a result, Depository Corporations’ transferable and other deposits grew, due to increased demand, savings, time, and foreign currency deposits by bank customers.
However, demand for cash also surged, on account of the increasing need for cash by households for the end of year. Consequently, currency outside depository corporations, rose by 11.6 per cent, causing a slight deterioration in intermediation efficiency, as the ratio of currency outside depository corporations to broad money rose by 0.1 percentage point to 6.2 per cent, above the level at end October 2020. The increase in transferable deposits of depository corporations and currency outside depository corporations meant that narrow money supply (M1) expanded by 39.2 per cent at end-november 2020.
The report noted that expansion in private sector credit was sustained, as the monetary authority continued to take measures to further stimulate economic activities, boost growth and quicken economic recovery. Credit to the private sector grew by 12.3 per cent at end November 2020, compared with 10.2 per cent in the preceding month.
The development was due to an uptick in economic activities, as shown by a rise in PMI to 50.2 index point at end-November 2020, compared with 49.4 index point at end-october 2020. Sectoral credit utilisation by the “’other” sectors of the economy, at N19,610.85 billion, rose by 1.7 per cent at end November 2020, above its level at end-october 2020.
A breakdown of the credit showed that the industrial sector increased by 0.1 percentage point to 37.1 per cent of the total disbursement, over the October 2020 level. The services, government, agricultural and construction sectors contributed 38.4 per cent, 8.4 per cent, 4.9 per cent and 4.8 per cent at end-November 2020, respectively, same as in the preceding month. However, the trade and general commerce sector declined by 0.1 percentage point to 6.4 per cent in November 2020.
WAICA Reinsurance Corporation has promised to support the winner of the maiden edition of her ‘ Annual Corporate Social Responsibility (CSR) Competition Project and Ambassadors for 2021/2022’ with $100,000 across all its operating countries.
Established in 2011 with the philosophy of strengthening the financial sector of the sub-region by providing greater and viable insurance and reinsurance capacity, the corporation said, the theme of its CSR competition is ‘Practical Solutions to Natural Disasters in West Africa.’
Speaking on this development recently Biola Ekundayo, the GMD of the Corporation said the winner of the competition will become WAICA Re’s goodwill ambassador for a year, having supported the winning project with up to $100,000, while the ambassador will have a cash award of $5000.
There will also be 1st and 2nd runners-up with cash awards of $2000 and $1000 respectively, he stressed.
Besides the competition, he said, WAICA Re has initiated several CSR projects across all its operating countries and has always felt that education is one of the major back bones of the industry and as a result has contributed immensely to education in the subregion as well as the development of the insurance industry.
‘We also carry out CSR activities to support the countries where we operate, for instance in Sierra Leone we have supported the insurance industry by establishing a college of Insurance designated in the Insurance Commission’s building. We will furnish and supply the needed textbooks, facilitators, and conducive environment for learning. This will be the first insurance training platform in the country.
In Nigeria, we have supplied fittings such as cooling systems and computers to the Chartered Insurance Institute of Nigeria, including the installations, while Cote D’ Ivoire we have done tree planting and garden at the insurance college
In Ghana, we are refurbishing the insurance institute’s library and stocking the same with textbooks; The Gambia, we are ponsoringwaii’s digital training platform; in Zimbabwe we are supporting the insurance institute with an operational vehicle.
Huawei’s CEO Ren Zhengfei has pledged to stick to a globalization strategy despite external pressure, and therefor calling on the new US administration to come up with more open policies that are in the interests of US companies and the US economy as a whole.
These are the first public remarks the founder of Huawei has made since the change of the US administration. Ren was speaking during a press briefing in Taiyuan, the capital city of China’s northern Shanxi province, after launching the Intelligent Mining Innovation Lab.
“Trade benefits both sides. Allowing US companies to supply goods to Chinese customers is conducive to their own financial performance. If Huawei’s production capacity expands, US companies could also sell more. It’s a win- win situation. I believe the new administration will weigh these interests as they consider their policies,” said Ren.
Ren stated that Huawei creates value to the whole ecosystem and wider economy. He cited the example that Huawei has built 5G networks in many cities in Europe, Asia and Middle East, and its networks in Europe top global network performance tests, benefiting all the users on those networks.
“The fact high-end users can use the iphone 12 to its fullest effect on our 5G networks in Europe is a testament to the quality of our networks,” said Ren.
“As humanity keeps making progress, no company can develop a globalized industry alone. It requires concerted efforts around the world,” Ren added.
The United St at e s government has been campaigning against Huawei in the past two years alleging
Huawei’s equipment could be used to spy on Americans, without presenting any evidence. Huawei has repeatedly denied the claims, and few other countries have given in to US pressure, with most focusing on ensuring all vendors meet technical standards to security.
Ren said he is now even more confident about Huawei’s survival than he was. “We have found new and more ways to overcome our challenges. Our sales revenue and profits in 2020 were higher than the previous years,” Ren told journalists.
Ren said new strategies include research and development and growing deeper roots in vertical industries around the world to enable the digital transformation with its Huawei’s core ICT capabilities. Ren said the Intelligent Mining Innovation Lab would result in better services for mines with 5G.
“By supporting the mining industry, we can grow our business and support more efficient and safer production in mines. We can also enable coal mine workers to ‘wear suits and ties’ at work” Ren said. “In the 5G era, connecting businesses is the main goal. There are many industries that we are not too familiar with, like airports, ports, coal mining, iron and steel production, automotive manufacturing, and aircraft manufacturing. That’s why we built joint labs to learn more about the needs of these industries.”
Huawei’s business results for the first nine months of the year 2020 showed that, revenue totalled 671.3 billion yuan ($98.57 billion), up 9.9 percent from that of the same period in 2019.
“We’ll continue serving our customers well by creating more value for them. We want them to have lasting faith in us, and we hope that they won’t sway because of political pressure,” concluded Ren.