Hotel income – Jelato Donna http://jelato-donna.com/ Thu, 30 Jun 2022 09:32:56 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://jelato-donna.com/wp-content/uploads/2021/06/icon-2021-06-23T175350.859-150x150.png Hotel income – Jelato Donna http://jelato-donna.com/ 32 32 Coretronic: Announcement for Subsidiaries under Section 22.1(1) of the Regulations Governing the Lending of Funds and the Granting of Endorsements/Guarantees by State-Owned Enterprises https://jelato-donna.com/coretronic-announcement-for-subsidiaries-under-section-22-11-of-the-regulations-governing-the-lending-of-funds-and-the-granting-of-endorsements-guarantees-by-state-owned-enterprises/ Thu, 30 Jun 2022 09:02:23 +0000 https://jelato-donna.com/coretronic-announcement-for-subsidiaries-under-section-22-11-of-the-regulations-governing-the-lending-of-funds-and-the-granting-of-endorsements-guarantees-by-state-owned-enterprises/ Statement 1.Date of occurrence of the event:2022/06/30 2.The public company or its subsidiaries for which the amount of monetary loans extended to others reaches 20 percent or more of their net worth on the latest financial statements(1)Name of funding recipient (2)Relationship with lender(3)Lending limit (thousand NTD)(4)Outstanding balance (thousand NTD) up to the date of occurrence(5)Reason […]]]>

Statement

1.Date of occurrence of the event:2022/06/30
2.The public company or its subsidiaries for which
the amount of monetary loans extended to others reaches
20 percent or more of their net worth on the latest
financial statements(1)Name of funding recipient
(2)Relationship with lender(3)Lending limit
(thousand NTD)(4)Outstanding balance (thousand NTD)
up to the date of occurrence(5)Reason for lending
up to the date of occurrence:
1
(1)Name of funding recipient:Coretronic Investment Limited
(2)Relationship with lender:Coretronic Investment Limited and
Bigshine (HK) Limited are direct and indirect 100% owned by
Coretronic Corp.separately.
(3)Lending limit (thousand NTD):NTD558,531thousand
(4)Outstanding balance (thousand NTD)up to the date of
occurrence:NTD307,877thousand
(5)Reason for lending up to the date of occurrence:working capital
needs
2
(1)Name of funding recipient:Coretronic Investment Limited
(2)Relationship with lender:Coretronic Investment Limited and
Great Pride Hong Kong Limited are direct and indirect 100%
owned by Coretronic Corp. separately.
(3)Lending limit (thousand NTD):NTD2,972,056thousand
(4)Outstanding balance (thousand NTD)up to the date of
occurrence:NTD882,968thousand
(5)Reason for lending up to the date of occurrence:working capital
needs
3
(1)Name of funding recipient:Brightbridge Resources Limited
(2)Relationship with lender:Brightbridge Resources Limited and
Tec Point Limited are indirect 100% owned by
Coretronic Corp. separately.
(3)Lending limit (thousand NTD):NTD3,773,184thousand
(4)Outstanding balance (thousand NTD)up to the date of
occurrence:NTD2,582thousand
(5)Reason for lending up to the date of occurrence:working capital
needs
4
(1)Name of funding recipient:Coretronic Investment Limited.
(2)Relationship with lender:Coretronic Investment Limited and
Venture Orient Limited are direct and indirect 100%
owned by Coretronic Corp.separately.
(3)Lending limit (thousand NTD):NTD616,067thousand
(4)Outstanding balance (thousand NTD)up to the date of
occurrence:NTD87,135thousand
(5)Reason for lending up to the date of occurrence:working capital
needs
5
(1)Name of funding recipient:Optoma Corp.
(2)Relationship with lender:Optoma Corp. and Chung Tsen Investment
Corp. are direct 100% owned by Coretronic Corp. separately.
(3)Lending limit (thousand NTD):NTD1,026,529housand
(4)Outstanding balance (thousand NTD)up to the date of
occurrence:NTD246,000thousand
(5)Reason for lending up to the date of occurrence:working capital
needs
6
(1)Name of funding recipient:Coretronic Optics (Kunshan) Corp.
(2)Relationship with lender:Coretronic Optics (Kunshan) Corp. and
Coretronic Projection (Kunshan) Corp. are indirect 100% owned by
Coretronic Corp. separately.
(3)Lending limit (thousand NTD):NTD5,722,995thousand
(4)Outstanding balance (thousand NTD)up to the date of
occurrence:NTD462,228thousand
(5)Reason for lending up to the date of occurrence:working capital
needs
7
(1)Name of funding recipient:Coretronic MEMS Corp.
(2)Relationship with lender:Coretronic MEMS Corp. and Young Green
Energy Co. are direct 100% owned and 99.91% owned  by Coretronic
Corp. separately.
(3)Lending limit (thousand NTD):NTD89,702thousand
(4)Outstanding balance (thousand NTD)up to the date of
occurrence:NTD50,000thousand
(5)Reason for lending up to the date of occurrence:working capital
needs
8
(1)Name of funding recipient: Optoma Corp.
(2)Relationship with lender: Optoma Corp. and Tsen Ming Investment
Corp. are direct and indirect 100% owned by Coretronic Corp.separately.
(3)Lending limit (thousand NTD):NTD186,970thousand
(4)Outstanding balance (thousand NTD)up to the date of
occurrence:NTD140,000thousand
(5)Reason for lending up to the date of occurrence:working capital
needs
9
(1)Name of funding recipient:Coretronic Optotech (Suzhou)Co., Ltd
(2)Relationship with lender:Coretronic Optotech (Suzhou)Co., Ltd and
Coretronic (Suzhou) Co., Ltd. are indirect 100% owned by Coretronic
Corp. separately.
(3)Lending limit (thousand NTD):NTD4,855,799thousand
(4)Outstanding balance (thousand NTD)up to the date of
occurrence:NTD706,424thousand
(5)Reason for lending up to the date of occurrence:working capital
needs
10
(1)Name of funding recipient:Coretronic Display (Suzhou) Co.,Ltd.
(2)Relationship with lender:Coretronic Display (Suzhou) Co.,Ltd.
and Coretronic (Suzhou) Co., Ltd. are indirect 100% owned by
Coretronic Corp. separately.
(3)Lending limit (thousand NTD):NTD4,855,799thousand
(4)Outstanding balance (thousand NTD)up to the date of
occurrence:NTD1,456,283thousand
(5)Reason for lending up to the date of occurrence:working capital
needs
11
(1)Name of funding recipient:Coretronic Optics (Suzhou) Co., Ltd.
(2)Relationship with lender:Coretronic Optics (Suzhou) Co., Ltd. and
Coretronic (Suzhou) Co., Ltd. are indirect 100% owned by Coretronic
Corp. separately.
(3)Lending limit (thousand NTD):NTD4,855,799thousand
(4)Outstanding balance (thousand NTD)up to the date of
occurrence:NTD911,374thousand
(5)Reason for lending up to the date of occurrence:working capital
needs
12
(1)Name of funding recipient:Coretronic corp.
(2)Relationship with lender:Dynamic Time Investments Limited
is indirect 100% owned by Coretronic corp.
(3)Lending limit (thousand NTD):NTD2,304,553thousand
(4)Outstanding balance (thousand NTD)up to the date of
occurrence:NTD1,336,070thousand
(5)Reason for lending up to the date of occurrence:working capital
needs
13
(1)Name of funding recipient:Great Pride Hong Kong Limited
(2)Relationship with lender: Great Pride Hong Kong Limited and
Dynamic Time Investments Limited are indirect 100%
owned by Coretronic Corp. separately.
(3)Lending limit (thousand NTD):NTD2,304,553thousand
(4)Outstanding balance (thousand NTD)up to the date of
occurrence:NTD784,215thousand
(5)Reason for lending up to the date of occurrence:working capital
needs
14
(1)Name of funding recipient:Core-Flex  Limited
(2)Relationship with lender: Core-Flex  Limited and
Dynamic Time Investments Limited are indirect 99.36% and 100% owned
by Coretronic corp. separately.
(3)Lending limit (thousand NTD):NTD921,821thousand
(4)Outstanding balance (thousand NTD)up to the date of
occurrence:NTD125,707thousand
(5)Reason for lending up to the date of occurrence:working capital
needs
15
(1)Name of funding recipient:Young Optics(BD) Ltd.
(2)Relationship with lender: Best Alpha Investments Limited and
Young Optics(BD) Ltd. are indirect 100% owned by Young Optics Inc.
 separately.
(3)Lending limit (thousand NTD):NTD526,289thousand
(4)Outstanding balance (thousand NTD)up to the date of
occurrence:NTD29,045thousand
(5)Reason for lending up to the date of occurrence:working capital
needs
3.The total amount of monetary loans extended to others
as of the date of occurrence:NTD7,527,908thousand
4.The total amount of monetary loans extended to others
as a percentage of the public company's net worth on
the latest financial statements as of the date of
occurrence:34.52%
5.Sources of funds for the company to extend monetary
loans to others:subsidiary's self-owned funds
6.Any other matters that need to be specified:None
]]>
Current ARM Rates – Forbes Advisor https://jelato-donna.com/current-arm-rates-forbes-advisor/ Thu, 23 Jun 2022 09:00:52 +0000 https://jelato-donna.com/current-arm-rates-forbes-advisor/ Editorial Note: We earn a commission on partner links on Forbes Advisor. Commissions do not affect the opinions or ratings of our editors. Compare current variable rate mortgage (ARM) rates to find the best rate for you. Lock in your rate today and see how much you can save. Current ARM rates Today’s current ARM […]]]>

Editorial Note: We earn a commission on partner links on Forbes Advisor. Commissions do not affect the opinions or ratings of our editors.

Compare current variable rate mortgage (ARM) rates to find the best rate for you. Lock in your rate today and see how much you can save.

Current ARM rates

Today’s current ARM rates are as follows:

  • ARM 10/1: 4.96% today vs. 4.98% last week
  • ARM 7/1: 4.80% today vs. 4.70% last week
  • ARM 5/1: 4.24% today vs. 4.04% last week

The 52 week high for a 10/1 ARM was 4.98% and the 52 week low was 4.05%.

The 52 week high for a 7/1 ARM was 4.80% and the 52 week low was 3.86%.

The 52 week high for a 5/1 ARM was 4.24% and the 52 week low was 3.38%.

What is an MRA?

ARMs are home loans whose rates can vary over the life of the loan. Unlike a fixed-rate mortgage, which carries the same interest rate over the life of the loan, ARMs start out with a fixed rate for a short period, say five years, and then adjust.

For example, a 5/1 ARM will have the same rate for the first five years, then may adjust each year thereafter, meaning the rate may go up or down, depending on the market.

How does an ARM work?

ARMs are always tied to a well-known benchmark – a widely published, easy-to-follow interest rate – and reset on a schedule that your lender will tell you in advance. But since there’s no way of knowing what the economy or financial markets will do years from now, they can be a much riskier way to finance a home than a fixed-rate mortgage.

ARM: advantages and disadvantages

ARMs often, but not always, have lower interest rates than fixed rate mortgages. Borrowers typically pay a small premium for the peace of mind of having a fixed rate for many years. This isn’t always the case, however – there were virtually no cost savings from switching to an ARM in the past few years when all interest rates were at rock bottom – so it still pays to shop around .

The risks that accompany MRAs are no longer just hypothetical. The Federal Reserve, which sets interest rates across the economy, has embarked on what most analysts believe will be a multi-year rate hike cycle. Any ARM you subscribe to now will almost certainly have a higher, or even considerably higher, rate when it resets in a few years.

But an ARM can still be a great option for you, especially if you don’t plan on staying home for long. Some ARMs have initial rates that last five years, but others can last up to seven or 10 years.

ARM Vs. Fixed Rate Mortgages

Fixed rate mortgages are often considered a wiser option for most borrowers. Being able to lock in a low interest rate for 30 years, while having the ability to refinance as you wish, if conditions change, often makes the most financial sense. Not to mention, it’s predictable, so you know exactly what your rate will be for the life of the loan.

But not everyone expects to stay at home for years and years. You may be buying a first home with the intention of building capital before moving on to a “forever home”. In this case, if an ARM has a lower interest rate, you may be able to direct more of your money into that nest egg.

Alternatively, an ARM with a lower rate than a fixed rate mortgage may simply be more affordable for you. As long as you’re comfortable with the idea of ​​selling your home or moving on before the initial ARM rates reset – or risk being able to afford the new higher payments – it can also be a reasonable choice.

How to get the best ARM rate

Several studies have shown that borrowers who shop around get better rates and terms than those who settle for the first option they find. If you’re unsure whether an ARM or a fixed rate mortgage is right for you, you should research lenders that offer both. A mortgage professional like a broker can also help you weigh your options.

Faster and easier mortgages

Check your rates today with Better Mortgage.

Frequently Asked Questions (FAQ)

When should you consider an ARM?

You might want to consider an ARM if you’re not planning on staying home for a long time. Many ARMs have an initial fixed rate term of five, seven, or 10 years, which can be about as long as you expect to own the home.

Another good reason to consider an ARM is if you can’t afford the monthly payment with a fixed rate mortgage. However, you will want to make sure you have an exit strategy before the ARM resets at a higher rate. You might also have owned the home for a while and need a slightly lower monthly payment for a while before you prepare to sell in a few years.

Why are ARM rates lower than fixed rates?

Except in exceptional circumstances, borrowers generally pay a little more for the peace of mind that comes with a long-term, fixed-rate mortgage. ARMs are riskier because they reset at a different (likely higher) rate after their initial phase is over.

What factors affect ARM rates?

Everything from global supply chain snafus to monetary policy decisions to bond market maneuvers can affect ARM rates. In other words, it can be difficult to predict interest rates in a few weeks, and especially in a few years. This is why ARMs are considered riskier than fixed rate mortgages.


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7 On Your Side: The Best Money Moves to Deal With Rising Mortgage Rates https://jelato-donna.com/7-on-your-side-the-best-money-moves-to-deal-with-rising-mortgage-rates/ Fri, 17 Jun 2022 22:52:11 +0000 https://jelato-donna.com/7-on-your-side-the-best-money-moves-to-deal-with-rising-mortgage-rates/ This week, 30-year fixed mortgage rates rose more than half a point to 5.78%, the biggest increase in 28 years. So what does it mean if you’re selling or buying a home? “We fell in love with the place, we fell in love with the house,” Mohamad Hussein said. “We got it, we felt lucky.” […]]]>
This week, 30-year fixed mortgage rates rose more than half a point to 5.78%, the biggest increase in 28 years.

So what does it mean if you’re selling or buying a home?

“We fell in love with the place, we fell in love with the house,” Mohamad Hussein said. “We got it, we felt lucky.”

Breathing a sigh of relief, the first home buyer closed his Cliffside Park property last March.

Hussein said if he applied today, his 2.5% interest rate on a 30-year fixed mortgage would be 6.5%.

His family couldn’t afford to buy their dream house now.

For example, take a $500,000 mortgage.

A four-point increase in the interest rate on a 30-year fixed mortgage would cost the homeowner an additional $1,185 per month in interest.

That’s $14,220 per year and an additional $426,600 in interest over the life of the loan.

“Our first time buyers are going to be taken off the market,” Robert White said.

White, president of New Jersey Realtors, said buyers with low margins on what they’ve saved and who can afford to pay monthly will choose to keep renting and wait as mortgage rates are expected to keep rising. .

“You might see somewhere between 7.5 and 8%, but that fights inflation and then rates will come back down,” White said.

His advice to potential buyers is to lock in a lower rate from time to time and then refinance.

“They may be paying a higher rate now, but they can refinance those loans at a later date at a lower interest rate,” White said.

White said don’t listen to advice like buying your rate with points doesn’t pay off in the long run, or using a shorter loan term.

“It’s going to cost the buyer 60% more on the monthly payment,” White said.

He also advises avoiding ARMs, adjustable rate mortgages, with attractive, low introductory rates.

“Here’s what could happen, you lock yourself into a 3-5 year ARM and let’s say rates have gone up. Well now you can’t refi because you’re already locked into that rate and it’s going to go up. expiration of this RMA,” White said.

What buyers can do in this market is try to put down a bigger deposit. This will present you as a stronger buyer and help you with the amount of equity you put into the home.

“You’re not going to see meaningful interest rates unless you put in 4% or more,” White said.

Another trick is to reduce the size of your wishlist.

Consider a condo or townhouse instead of house for now or broaden your search to more remote areas and use a direct lender, a reputable bank with guaranteed rates.

“The product they are promoting will definitely stay the same from start to finish,” White said.

And finally, lenders want your business, so put them in competition. Shop around and consider working with a licensed mortgage broker, they can help you through uncertain times.

MORE NEWS: New video released on disappearance of pregnant postwoman

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DARIOHEALTH CORP. : Entering into a Material Definitive Agreement, Creating a Direct Financial Obligation or Obligation Under an Off-Balance Sheet Arrangement of a Registrant, Other Events, Financial Statements and Exhibits (Form 8-K ) https://jelato-donna.com/dariohealth-corp-entering-into-a-material-definitive-agreement-creating-a-direct-financial-obligation-or-obligation-under-an-off-balance-sheet-arrangement-of-a-registrant-other-events-financial/ Mon, 13 Jun 2022 20:33:09 +0000 https://jelato-donna.com/dariohealth-corp-entering-into-a-material-definitive-agreement-creating-a-direct-financial-obligation-or-obligation-under-an-off-balance-sheet-arrangement-of-a-registrant-other-events-financial/ Section 1.01 Entering into a Material Definitive Agreement. On June 9, 2022 (the “Closing Date”), DarioHealth Corp. (the “Company”) has entered into a credit agreement (the “Credit Agreement”), by and between the Company, as borrower, and OrbiMed III, LP Royalty and Credit Opportunitiesas a lender (the “Lender”). The Credit Agreement provides for a five-year senior […]]]>

Section 1.01 Entering into a Material Definitive Agreement.

On June 9, 2022 (the “Closing Date”), DarioHealth Corp. (the “Company”) has entered into a credit agreement (the “Credit Agreement”), by and between the Company, as borrower, and OrbiMed III, LP Royalty and Credit Opportunitiesas a lender (the “Lender”). The Credit Agreement provides for a five-year senior secured credit facility in the aggregate principal amount of up to $50 million (the “Loan Facility“), of which $25 million was made available on the Closing Date (the “Initial Commitment Amount”) and until $25 million will be available on or before June 30, 2023, subject to certain income requirements (the “Deferred Drawdown Commitment Amount”). On June 9, 2022the Company closed on the original amount of the commitment, less certain fees and expenses payable to the lender or on behalf of the lender.

All obligations under the Credit Agreement are guaranteed by all wholly owned subsidiaries of the Company other than Dario Health Services Private Limited. All obligations under the Credit Agreement and the guarantees for such obligations are secured by substantially all of the assets of the Company and each guarantor. If, up to the maturity date of the Loan Facility, the Company’s net earnings do not equal or exceed the applicable amount for the period specified in the Credit Agreement, the Company will then repay in equal monthly installments the Facility loan principal amount outstanding, together with a redemption premium and other charges. The Company will repay amounts outstanding under the Loan Facility in full immediately upon acceleration following an Event of Default, as set forth in the Credit Agreement, together with a repayment premium and other charges. .

During the term of the Loan Facility, interest payable in cash by the Company will accrue on any outstanding balance owing under the Loan Facility at an annual rate equal to the greater of (x) the adjusted SOFR rate (which is the forward-looking one-month term rate based on the guaranteed overnight rate administered by the CME Group Benchmark Administration Limited) and (y) 0.50% plus, in both cases, 9.50%. In the event of default, any amount unpaid under the Loan Facility will bear interest at a rate of 5.00% above the interest rate otherwise applicable. The Company will pay certain fees in connection with the loan facility, including initial fees, unused fees on the unused portion of the loan facility, administration fees, redemption premium and exit fees, as well as certain other fees and expenses of the Lender.

The Credit Agreement contains customary events of default, including with respect to non-payment of principal, interest, fees or other amounts; the material inaccuracy of any representation or warranty; non-compliance or breach of covenants; bankruptcy and insolvency events; material monetary misjudgments; impairment of any material definitive loan documentation; other significant adverse effects; key person events and change of control.

Each of the credit agreements and a pledge and guarantee agreement entered into by the company, the guarantors and the lender on June 9, 2022 (the “Pledge and Security Agreement”) also contains a number of customary representations, warranties and covenants which, among other things, will limit or restrict the ability of the Company and its subsidiaries to (subject to certain conditions and exceptions): create liens and encumbrances; incur additional debt; merge, dissolve, liquidate or consolidate; make acquisitions, investments, advances or loans; assign or transfer assets; pay dividends or make other payments in respect of their share capital; modify certain material documents; redeem or redeem certain debts; engage in certain transactions with affiliates; and enter into certain restrictive agreements. In addition, the Company will be required to maintain at least $10 million unrestricted cash and cash equivalents at any time.

On the Closing Date, and in respect of the Initial Commitment Amount only, the Company agreed to issue to the Lender a warrant (the “Warrant”) to purchase up to 226,586 common shares of the Company, at an exercise price of $6.62 per share, which will have a duration of 7 years from the date of issue. The warrant contains customary stock adjustment provisions, as well as weighted average price protection in certain circumstances, but in no event will the exercise price of the warrant be adjusted to a price less than $4.00 per share. In the event that the Company is eligible to draw the amount of the Deferred Drawdown Commitment, the Company has agreed to issue to the lender an additional warrant (the “Additional Warrant”), with a term of 7 years from the date of issue, to purchase up to 6% of the Deferred Drawdown Commitment Amount based on a 10-day volume-weighted average price of the Company’s common stock (the “volume weighted average price”) with an exercise price equal to the volume weighted average price.

On the Closing Date, the Company and the Lender executed a registration rights agreement (the “Registration Rights Agreement”) pursuant to which the Company agreed to file a registration statement with the US Securities and Exchange Commission to register the common shares underlying the Warrant and the Additional Warrant.

The foregoing description of the terms of the Credit Agreement, the Pledge and Security Agreement, the Registration Rights Agreement and the Warrant is not intended to be exhaustive and is qualified in its entirety by reference to Credit Agreement, the Pledge and Security Agreement, the Registration Rights Agreement and the Power of Attorney, copies of which are attached hereto as Schedules 10.1, 10.2, 10.3 and 4.1, respectively, and incorporated herein by reference.

Item 2.03 Creation of a Direct Financial Obligation or Obligation Under an Off-Balance Sheet Arrangement of a Registrant.

The information set out in Section 1.01 is incorporated by reference into this Section 2.03.



Item 8.01 Other Events.



On June 9, 2022, the Company issued a press release announcing the borrowing under the credit agreement. A copy of the press release is attached hereto as Exhibit 99.1.

Item 9.01 Financial statements and supporting documents.




(d) Exhibits



  4.1       Form of Warrant.

  10.1^     Credit Agreement, dated June 9, 2022, by and among the Company, as
          borrower, and OrbiMed Royalty and Credit Opportunities III, LP, as
          lender.

  10.2      Pledge and Security Agreement, dated June 9, 2022, by and among the
          Company, Labstyle Innovation Ltd, Upright Technologies, Inc.,
          Psyinnovations, Inc., and OrbiMed Royalty and Credit Opportunities III,
          LP.

  10.3      Registration Rights Agreement, dated June 9, 2022, by and between the
          Company and OrbiMed Royalty and Credit Opportunities III, LP.

  99.1      Press release of DarioHealth Corp. dated June 9, 2022.

104       Cover Page Interactive Data File (embedded within the Inline XBRL
          document).




^    Certain identified information in the exhibit has been excluded from the
     exhibit because it is both (i) not material and (ii) is the type that

DarioHealth Corp. treat as private or confidential.

© Edgar Online, source Previews

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Six easy ways to reduce your debt, from cut loans to flash credit cards https://jelato-donna.com/six-easy-ways-to-reduce-your-debt-from-cut-loans-to-flash-credit-cards/ Sat, 11 Jun 2022 20:27:00 +0000 https://jelato-donna.com/six-easy-ways-to-reduce-your-debt-from-cut-loans-to-flash-credit-cards/ PRICES are skyrocketing from gas pumps to supermarket checkouts, but the pressure on the cost of living is even worse if you are already in debt. High interest rates mean you risk spending huge sums on repayments without reducing the amount you owe. 2 Six Ways to Reduce Your Debt Quickly and Easily Rosie Murray-West […]]]>

PRICES are skyrocketing from gas pumps to supermarket checkouts, but the pressure on the cost of living is even worse if you are already in debt.

High interest rates mean you risk spending huge sums on repayments without reducing the amount you owe.

2

Six Ways to Reduce Your Debt Quickly and Easily

Rosie Murray-West reveals smart switches to clear debt faster and potentially save thousands of dollars. . .

LIGHTEN YOUR LOANS

IF you took out a loan a few years ago, you may be paying more than expected.

Using a new loan at a lower rate to pay off an old one can sometimes make sense.

M&S Bank offers loans with APRs below 4%, compared to an average of 7.4% in June 2020.

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That would mean saving over £340 a year on a £10,000 loan.

But you’ll need to consider the settlement fees that most lenders charge if you cancel your loan early.

This can add up to two months interest, or £122 in the example above.

Not everyone gets the rates advertised by lenders, as these are reserved for those with good credit.

Check which loans you are most likely to get without hurting your score by using an eligibility tool such as the one on moneysavingexpert.com.

RELEASE OF EXERCISE EQUITY

OLDER homeowners who have borrowed against the value of their home with a capital release plan can sometimes see massive savings by switching if they entered into their contract more than three years ago.

Interest rates on equity release plans have dropped dramatically in recent years.

The average switcher saved around £52,000 last year, according to capitalization adviser Age Partnership.

Plans often come with steep prepayment charges, but the switch may be worth it if the savings are greater.

Always consult an independent stock release adviser registered with the Financial Conduct Authority.

REDUCE YOUR MORTGAGE RATE

ALLOWING your mortgage to switch to your lender’s standard variable rate (SVR) at the end of a fixed or trailing agreement could cost you thousands of dollars every year.

The average SVR, according to Moneyfacts, is now 4.91%, while the average two-year fixed rate is 3.25% and five-year 3.37%.

For a £250,000 mortgage, you could save £2,760 a year by switching from a typical SVR to an average two-year solution – and some deals available could save you even more.

Your current lender will also offer you new rates when your agreement expires, so check them out.

If in doubt, take advice from an independent broker.

BLITZ CREDIT CARD BALANCE

Don’t let credit card debt linger. If you only pay the minimum each month, it could take decades to clear.

Making just the average minimum monthly payment of 2.5% on a balance of £5,000 means it would take you almost 38 years to pay off and cost almost £15,000 in total, with a typical interest rate of 22 %.

Upgrade to a balance transfer credit card for an interest-free window of up to 34 months.

Divide the total debt into monthly payments and set up direct debit to ensure you clear the balance during this time. If that’s not possible, try again to switch to a new card.

But not everyone can get the best balance transfer deals because they require a great credit rating.

Rachel Springall, from the comparison site moneyfacts.co.uksaid that even if you can’t make a 0% deal, you can still save thousands of dollars by moving debt to a low-interest card.

Find out which cards you’re most likely to get with the eligibility check at moneysavingexpert.com.

When you transfer your debt to one of these cards, you normally pay a one-time charge of two to three per cent of the balance, or £100 to £150 if you transfer £5,000.

ELIMINATE OVERDISCOVERY FEES

Dipping into your overdraft can be one of the most expensive ways to borrow, with some banks charging 40% interest, almost double the average credit card rate.

Move to a bank with free overdraft. Nationwide’s FlexDirect pays you up to £125 to change and has an interest-free overdraft for the first year. The amount you can borrow depends on your situation.

First Direct’s first account pays Switches £125 and offers £250 free overdraft. Both providers have online eligibility checkers so you can see if you’re likely to qualify – important if you’re already overdrawn.

To pay off larger overdrafts, a money transfer credit card might give you interest-free respite, but beware of fees.

“INTEREST-FREE CREDIT CARDS LET ME BORROW TO GROW MY BUSINESS”

HYPNOTHERAPIST Emma Gosling borrowed £5,000 on a credit card in 2019 to pay a mentor to help her grow her business.

But with an interest rate of 19%, the costs could have skyrocketed.

The 47-year-old from St Albans, Herts transferred that debt to two new credit cards, a move which gave her 27 months interest-free.

She has now cleared the debt without paying a cent in interest.

“I’m glad I used the cards,” Emma said.

“I couldn’t afford to pay for the mentorship up front, so it was a good fit.”

ENERGY AID RISK FROM TENANTS

MORE than half a million tenants may not qualify for government help with their energy bills, warns Citizens Advice.

The charity estimates that one in eight tenants of private landlords, or around 585,000 people, could be affected.

More than half a million tenants may miss out on government help with energy bills, warns Citizens Advice

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More than half a million tenants may miss out on government help with energy bills, warns Citizens AdviceCredit: Getty – Contributor

Tenants cannot claim the £150 warm house rebate if their landlord is managing their bills, and they could also be denied the government’s £400 energy grant in October.

You can only receive cash assistance if you pay your energy supplier directly.

You can try talking to your landlord or managing agent of the shed to see if they’re willing to pass on some or all of it, but there’s no legal obligation to do so.

The charity has seen cases where vulnerable tenants have been denied the long-standing Warm Home discount.

A man with mental health issues who had less than £10 on his prepaid meter could not claim payment because he was not the named payer.

Dame Clare Moriarty, chief executive of Citizens Advice, said: “We are concerned that many tenants will fall through the cracks, putting them at risk of running out of money to help meet bills that soar.”

Tenants who pay their energy bills directly have the right to choose their supplier and have a smart meter installed, but must notify their landlord or rental agent.

If your energy bills are included in your rent, this should be stated in your tenancy agreement, but there may be a ‘fair use’ clause limiting how much you can use.

If your landlord pays for your energy and then resells it to you, he can only charge you for the units of energy you have used and your share of the permanent charge, plus VAT.


THOUSANDS of women could lose huge sums as a result of new state pension mistakes, a former minister has warned.

Sun Money has already called on the government to step up efforts to reimburse around 134,000 pensioners, mostly women, who missed around £1billion due to earlier mistakes.

The Department for Work and Pensions is trying to identify those who were underpaid and fill the gaps, but 40,000 pensioners are thought to have died without getting their due.

The latest mistakes uncovered by former pensions minister Sir Steve Webb, now a partner at consultancy LCP, affect women on the new state pension who previously paid a reduced National Insurance rate known as ” married woman stamp”.

They have the right to claim part of their state pension on the basis of their husband’s contributions.

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But some have been wrongly told they have no rights when in fact they owe more than £4,000 a year.

If you have paid the married woman’s stamp, you can check your rights by calling The Pension Service on 0800 731 0469.


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How to find a co-signer for your student loans https://jelato-donna.com/how-to-find-a-co-signer-for-your-student-loans/ Thu, 09 Jun 2022 20:31:14 +0000 https://jelato-donna.com/how-to-find-a-co-signer-for-your-student-loans/ Our goal at Credible Operations, Inc., NMLS Number 1681276, hereafter referred to as “Credible”, is to give you the tools and confidence you need to improve your finances. Although we promote the products of our partner lenders who pay us for our services, all opinions are our own. Applying with a co-signer can make it […]]]>

Our goal at Credible Operations, Inc., NMLS Number 1681276, hereafter referred to as “Credible”, is to give you the tools and confidence you need to improve your finances. Although we promote the products of our partner lenders who pay us for our services, all opinions are our own.

Applying with a co-signer can make it easier to get private student loans. Find out how to find a co-signer and apply for a student loan. (Shutterstock)

If federal grants, scholarships, and loans do not cover the full cost of your tuition, you may consider applying for private student loans. Although you don’t need good credit to get a federal student loan, your credit is important when applying for a private student loan.

Applying to a co-signer with good credit can improve your chances of approval and help you get the best rates and the terms of your loan.

Some private lenders may require you to apply with a co-signer if your credit history is limited. If you’re wondering how to find a co-signer for your student loans, it helps to understand how the process works.

Comparing loan offers from multiple lenders can help you find the right one. best private student loan rates available for you. Credible makes it easy to compare rates in minutes.

What is a co-signer?

A co-signer is someone with good credit who signs the loan with you, the primary borrower, and agrees to take responsibility for paying off the debt if you can’t. When you apply with a co-signer, your lender knows that one of you is more likely to repay the loan.

If you stop making your loan payments, your co-signer is responsible for repaying the full amount. And if you miss monthly payments, they’ll show up on your co-signer’s credit report and their credit score will suffer along with yours.

Some lenders will release the co-signer from the loan once you improve your credit score or make a specific number of payments on time. Your lender is unlikely to tell you when you are eligible for a co-signer release, so you will need to contact them directly for more information.

Who is an ideal co-signer?

It’s a good idea to seek out a financially secure co-signer with good credit. Your lender will likely want to see a co-signer with a steady job who has the income and ability to repay the loan. And because of the risks involved with co-signing a loan, you may want to seek out someone who is investing in your future.

CALCULATE YOUR DEBT TO INCOME RATIO AND FIND OUT WHERE YOU STAND

Who can you ask to be a co-signer?

Technically, anyone can be a co-signer as long as they have good credit and are committed to repaying the loan. But due to the added responsibility, some people may be more willing to help you with your student loans that others. Here are a few people you might consider as potential co-signers.

Parents

Your parents will likely be your first choice for potential co-signers, as they are usually the most invested in your college education. And if they’re already helping you with your tuition, they might be more likely to agree.

Extended family

If your parents can’t or won’t co-sign for you, you might consider asking extended family members. You may have a grandparent, aunt, or uncle who is willing to co-sign your student loans. And if that person is in a good financial position, they may be more willing to help.

Friends

Close friends are also potential co-signers. Ideally, a friend co-signing for you would be someone you’ve known for most of your life and have a good relationship with.

Potential co-signers may feel more secure about co-signing your student loan if you can give them an idea of ​​the loan’s interest rate and terms. Before approaching your co-signer, consider compare private student loan rates with Credible — it’s 100% free and won’t affect your credit.

Why is it beneficial to have a co-signer?

Although not a requirement, applying with a co-signer can be helpful for most borrowers. By using a co-signer, you benefit from that person’s strong credit history. This can help you establish your own credit score. And applying with a co-signer can help you qualify for the lowest interest rate on your loan.

What are the risks of having a co-signer?

Despite the benefits, there are many risks that come with co-signing a loan. If you stop making your loan payments, your co-signer is responsible for repaying the full balance. And if you miss a few monthly payments, their credit score could be damaged.

Moreover, while some loan officers will release co-signers after a specific period of time, this is not a guarantee. It’s not impossible, but most people have a hard time getting out of loans they co-signed for. The Consumer Financial Protection Bureau found that private student lenders rejected 90% of borrowers who requested cosigner release.

5 WAYS TO IMPROVE YOUR CREDIT SCORE IN 2022

What to do if you can’t find a co-signer

If you unable to find a co-signer for your private student loans, you’ll want to make sure you’ve truly exhausted your federal loan options. Federal student loans don’t require a co-signer, so it’s a good idea to maximize any federal aid you qualify for first.

You will also be able to find private student lenders that will allow you to borrow without a co-signer. But you’ll generally need good to excellent credit (a credit score of at least 670) and a stable income to qualify. And you could face higher interest rates. If you are able to improve a low credit score and show a stable income, you may have a better chance of getting a private student loan without a co-signer.

You can also look for scholarships and grants to help cover your tuition. You don’t have to pay back any grants or scholarships, making it a better option than student loans.

If you are still unable to cover the full cost of your tuition, contact your school’s financial aid office. They may have additional resources available or may be able to help reduce some of your tuition.

How to qualify for a student loan

If you need to take out student loans, most borrowers start with federal loans. To begin this process, you will need to complete the Free Application for Federal Student Aid (FAFSA). The FAFSA is a requirement if you hope to qualify for federal loans, grants, or work-study programs.

Two types of federal loans are available: subsidized direct loans and unsubsidized direct loans. Subsidized loans are need-based, and if you qualify, the government will pay the interest accrued while you are still in school full-time. Unsubsidized loans are available to everyone and you will be responsible for paying interest accrued during your studies.

Since private lenders offer private student loans, you do not have to complete the FAFSA to qualify. For private loans, you will complete the lender’s application. It’s a good idea to shop around and compare the rates and terms you receive from different lenders. Credible makes this easy, allowing you to compare student loan rates from multiple lenders in minutes.

If you cannot apply with a co-signer due to bad creditIt’s a good idea to establish your credit history before applying for a private student loan. Here are some ways to get started:

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Do you need a co-signer for student loans? – Forbes Advisor https://jelato-donna.com/do-you-need-a-co-signer-for-student-loans-forbes-advisor/ Tue, 07 Jun 2022 11:30:38 +0000 https://jelato-donna.com/do-you-need-a-co-signer-for-student-loans-forbes-advisor/ Editorial Note: We earn a commission on partner links on Forbes Advisor. Commissions do not affect the opinions or ratings of our editors. More than half of students borrow money to pay for their undergraduate degree, and many of them face a common problem: as young adults, they didn’t have the time or the means […]]]>

Editorial Note: We earn a commission on partner links on Forbes Advisor. Commissions do not affect the opinions or ratings of our editors.

More than half of students borrow money to pay for their undergraduate degree, and many of them face a common problem: as young adults, they didn’t have the time or the means to build up a credit history or a stable income. Without these, student borrowers often struggle to qualify for private student loans without a co-signer.

However, not all forms of student debt require a co-signer, and it is possible to borrow money for college on your own. Here’s when you might need a co-signer for your student loans and how you can include them in your loan application, if applicable.

Do you need a student loan co-signer? 4 factors to consider

It is possible to qualify for a student loan on your own, but some students may find better deals if they apply for a loan with a co-signer. Here’s what to consider before applying:

1. Type of student loan

The type of loan you get has a direct impact on your need for a co-signer. Most federal student loans, including direct subsidized, unsubsidized, and consolidation loans, do not require a credit check or a co-signer. This means that most student applicants can qualify for these loans on their own.

Only one type of federal debt requires a credit check: Direct PLUS loans for parents or graduate students. If you don’t qualify for PLUS loans due to negative credit scores, you can be approved after adding a co-signer (or “endorser” as the Department of Education calls it).

Private student loans, which are offered by private institutions like banks, credit unions, and online lenders, usually require a credit check. If you don’t have good to excellent credit (or any other credit), you’ll likely need a co-signer to help you qualify.

2. Credit score

Your credit score does not affect your approval for most federal student loans. Plus, everyone who qualifies for federal student loans receives the same standardized interest rates.

But if you apply for a private student loan, your credit score will be one of the most important factors in determining your eligibility. Typically, most lenders require minimum scores between 600 and 600 to be approved. The higher your credit score, the more likely you are to be approved for the loan at the lowest interest rate available.

3. Credit history

Your credit score is based on the content and length of your credit history. If you have a short credit history or poor credit, this is a red flag for private student lenders. In this case, you may need a co-signer with a longer credit history that shows good or excellent credit to get a private student loan.

4. Professional status and income

When you take out a private student loan, you usually have to show that you have the funds to pay it back. Candidates who work full-time and earn a regular salary probably won’t have a hard time proving it.

But if you work part-time, are unemployed, or have irregular income, you might need a co-signer to help you secure a private student loan.

How to add a co-signer to your student loan

If you are applying for federal student loans, you must submit the Free Application for Federal Student Aid (FAFSA). After reviewing your FAFSA, your award letter will indicate what federal aid you are eligible for, including grants, scholarships, work-study programs, and student loans. Most types of federal debt don’t require (or allow) co-signers, so you can just accept whatever help you need and complete the final paperwork.

To apply for a federal PLUS loan, you will need to submit an additional application. If you have adverse credit and are not approved for a PLUS loan, you can add an endorser (aka co-signer) to your online application.

If you want to take out private student loans, you may need a co-signer to qualify or get the lowest interest rates available. An ideal co-signer is someone you trust who has a solid history of responsible credit use and a stable income. This may be a parent, grandparent or other person aged 18 or over who agrees to share the responsibility for the loan.

Keep in mind that this means your co-signer will be responsible if you can’t make your payments. Plus, missing payments will affect not only your credit, but your co-signer’s as well. Because of these risks, it’s important to establish some ground rules for you and your co-signer before submitting your application. Consider:

  • Application Requirements. Make sure your cosigner meets the lender’s eligibility criteria before you complete an application. If your lender has a prequalification option, this can help determine if they are suitable for a private student loan.
  • Repayment Terms. For private student loans, repayment often begins six months after you graduate or falls below half-time. But not all private student lenders offer this grace period. If you need to start paying off your loan while in school, make a plan with your co-signer on how to handle the payments.
  • A backup plan. Even with the best of intentions, you may not be able to pay your student loan. Discuss this possibility with your co-signer in advance and make a backup plan just in case. Describe what both parties will do if you lose your job, have an unexpected financial emergency, or cannot repay your student loan.

When you find the right co-signer, you can complete an application together and enter information from both parties. You will both receive terms and conditions and alerts regarding your account, including student loan approval and disbursement.

Consider lenders that offer co-signer release

Student loans with a co-signer release option are available from many, but not all, private lenders. Co-signer release allows you to remove your co-signer from the loan once certain conditions are met. For example, you’ll likely need strong enough credit and income to qualify on your own, in addition to making a year or more of one-time payments before you can remove a co-signer.

Your co-signer might be more comfortable supporting your loan if it can be withdrawn at some point during repayment. If this is a priority, be sure to check that your desired lender offers a cosigner release before submitting an application.

If you borrow a loan without a co-signer release, you can only remove a co-signer by refinancing your debt into a brand new loan.

Compare student loan rates in minutes

Compare rates from participating lenders via Credible.com

Conclusion

Not all student loans require co-signers. Since most federal student loans are free from cosigner requirements, this is probably your best bet for borrowing money for school. Federal loans also come with other benefits and protections that often make them a better option than private student loans.

If you need to borrow more than the Department of Education can afford, explore private student loans. But remember that without a decent credit history and stable income, you might need a co-signer to help you qualify.

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Top 5 Money-Related Changes in June https://jelato-donna.com/top-5-money-related-changes-in-june/ Sat, 04 Jun 2022 01:28:41 +0000 https://jelato-donna.com/top-5-money-related-changes-in-june/ From Loan IMEs, Auto Insurance to Deposits: The Top 5 Money-Related Changes in June Now that June has begun, many monetary policy changes announced by banks, insurance companies and other agencies last month have come into effect and some will be in place by the end of this month. . All of these changes will […]]]>

From Loan IMEs, Auto Insurance to Deposits: The Top 5 Money-Related Changes in June

Now that June has begun, many monetary policy changes announced by banks, insurance companies and other agencies last month have come into effect and some will be in place by the end of this month. . All of these changes will have an impact on your budget planning.

Whether you’re taking out a home loan or planning to buy a car or just want to put your hard-earned money into deposits, some key changes took place in June. Some lenders have made key revisions to their home loan interest rates, savings deposit rates and service charges from June.

In addition, car and bicycle owners will now have to pay a higher liability insurance premium. In addition, the penalty amount is doubled to Rs 1,000, if the PAN-Aadhaar link is not completed by June 30. To relieve LPG consumers, the purchase of commercial cylinders has become cheaper this month.

Here are the main changes in June:

1. Lend EMI to increase

Various lenders, including SBI and HDFC, have raised their interest rates on home loans. The State Bank of India (SBI) has raised its interest rates on home loans effective June 1, 2022. The bank has raised the External Benchmark Lending Rate (EBLR) by 40 basis points to 7.05% plus CRP and the repo rate-linked lending rate (RLLR) increased to 6.65% plus CRP.

On ordinary home loans, SBI interest rates range from 7.05% to a maximum of 7.35%. A concession of 5 basis points is granted to women borrowers subject to a minimum RER, ie 7.05%.

HDFC Retail Prime Lending Rate (RPLR), on which its adjustable rate home loans (ARHL) are referenced, increased by 5 basis points, effective June 1. With this 5 basis point increase, the total interest rate hike will be 40 basis points for HDFC home loan borrowers. A basis point is one hundredth of a percentage point.

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Two other lenders ICICI Bank and Punjab National Bank (PNB) have also announced a hike in their marginal cost-based lending rates (MCLR). PNB, a public bank, raised its marginal cost of funds-based lending rate by 15 basis points. The increased rates come into effect on June 1, according to the PNB website.

Private sector lender ICICI Bank has also revised the marginal cost of funds-based lending rate with effect from June 1, 2022, according to its website.

The Bank of India has also increased the marginal cost of funds based lending rate over a certain term with effect from June 1, 2022.

2. Premium for Flagship Insurance Plans PMJJBYPMSBY browsed

The Center has increased the premium of its flagship insurance schemes – Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and Pradhan Mantri Suraksha Bima Yojana (PMSBY) to make them economically viable. The revision of premium rates was carried out for the first time in seven years for these two plans.

The premium rate of PMJJBY has been revised upwards to Rs 1.25 per day, which translates into an increase of Rs 330 to Rs 436 per year. The annual premium for PMSBY has been increased from Rs 12 to Rs 20, according to an official statement. The new premium rates come into effect on June 1, 2022.

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3. Be prepared to pay a double penalty, if the PAN-Aadhar link is made after June 30

Taxpayers have until June 30 to bind their PAN and Aadhaar with a late fee of Rs 500, according to a circular issued by the Central Board of Direct Taxes (CBDT). However, if this PAN-Aadhaar link is made on or after July 1, the penalty amount will be Rs 1,000.

With penalty fee, the Center has extended the deadline for linking the PAN card to the Aadhar number till March 31, 2023. The previous deadline was March 31, 2022.

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4. Motor vehicle liability insurance premium increases

Under the revised premium rates, passenger cars with engine capacities of up to 1,000 cc will attract an increased rate of Rs. 2,094. On the other hand, while cars with engine capacities ranging from 1,000 cc to 1,500 cc have to pay a premium of Rs. 3,416, those with an engine capacity above 1,500cc will have premium rates of Rs. 7,897.

For two-wheelers, if the engine capacity is between 150 cc and 350 cc, the premium rate will be Rs. 1,366. Above 350 cc, the premium amount will be Rs. 2,804. One can You can also select three-year insurance plans with separate premium rates.

5. Lower LPG price

The Petroleum Marketing Companies (OMC) have reduced the price of commercial 19kg LPG cylinder by around Rs 135 with immediate effect from June 1. In Delhi, the commercial 19 kg bottle now costs Rs 2,219 from the previous level of Rs 2,355.50 per bottle. In Mumbai, the price of LPG is lowered to Rs 2,171.50 per cylinder from Rs 2,307 while in Kolkata, a consumer will have to pay Rs 2,322 per cylinder instead of Rs 2,455. of Rs 2,508, a customer will have to shell out Rs 2,373 in Chennai.

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How Mclr Hike will impact loan applications https://jelato-donna.com/how-mclr-hike-will-impact-loan-applications/ Fri, 03 Jun 2022 02:38:04 +0000 https://jelato-donna.com/how-mclr-hike-will-impact-loan-applications/ The recent rise in the MCLR has opened the floodgates to questions from borrowers, who are still trying to understand its impact. MCLR, or marginal cost of funds-based lending rate, is the lowest interest rate at which banks are allowed to lend to customers. This rate can be reset to durations of 1 night, 1 […]]]>

The recent rise in the MCLR has opened the floodgates to questions from borrowers, who are still trying to understand its impact. MCLR, or marginal cost of funds-based lending rate, is the lowest interest rate at which banks are allowed to lend to customers. This rate can be reset to durations of 1 night, 1 month, 3 months, 6 months, 1 year, 2 years and 3 years. These durations are also set to ensure that the rate cannot be reset before this period, even if the MCLR changes.

Banks tie their deposit and lending rates to various MCLR mandates. Typically, a change in the repo rate is reflected in MCLR rates, although there may be exceptions… like this time! This is the first time rates have risen since 2019. Prior to that, they were steadily falling during the COVID pandemic.

The current rise can be attributed to inflation caused by domestic and international geopolitical considerations, as well as macroeconomic factors. These led to a sharp increase in the cost of funds raised in the markets by banks and an increase in deposit rates. The MCLR, which has a direct correlation with both, has consequently increased.

However, there will be respite for borrowers!

It is important to understand that the MCLR increase only applies to variable rate loans, no additional fees are charged on fixed interest rate loans. Simply put, the MCLR applies to floating interest rates for loans that are linked to external benchmarks such as the repo rate/treasury bill rate. For these retail borrowers, interest rates will rise, resulting in higher EMIs on the loans they service, whether automotive, residential or personal.

That said, there may not be a significant impact on retail loans as they are short term. Today, the proportion of MCLR-linked loans is declining – with banks increasingly adopting the External Benchmark Lending Rate (EBLR) for retail loans such as personal, education and MSME loans. Corporate loans, on the other hand, will be much more impacted by the rise – as around 60% of corporate borrowing is based on the MCLR.

The impact of the rise on the gold lending industry will be limited to MCLR-linked lending. However, this will not have a substantial impact on existing customers. The term of a gold loan is usually 12 months (short term) and banks associate gold loans with an MCLR of 6 or 12 months. SBI, Axis Bank and South Indian Bank are a few banks where gold loans are linked to MCLR. Now let’s come to new customers.

They will witness an increase in interest rates due to an increase in the MCLR. That said, an increase of 10 basis points by SBI and 5 basis points by Axis, Bank of Baroda and Kotak Mahindra will not have a significant impact.

So what can be an effective solution to protect the financial interests of borrowers?

First, the borrower can ask the bank to convert their existing loans or apply for new loans linked to repo rates. Repo loans will be more profitable to serve since many banks have interest rates below 7%. Another possible solution could be to opt for a different lender who offers a more nominal interest rate. All of this information is available in the public domain, on the websites of lenders and loan aggregators/comparators.

In the event that the borrower chooses to continue with the same lender, he may consider increasing the payment term. This will help them spread the burden over a longer period, without having to pay higher EMIs. Some financial institutions may implement it themselves if the MCLR increases. Partial prepayment will also offset the interest burden of long-term loans such as home loans, and reduce the overall interest payable. This, of course, is subject to each bank’s discretion and borrowing terms and conditions.

— The author, Nitin Misra is co-founder, indiagold. Opinions expressed are personal

(Edited by : Ajay Vaishnav)

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SILK ROAD MEDICAL INC: Entering into a Material Definitive Agreement, Terminating a Material Definitive Agreement, Creating a Direct Financial Obligation or Obligation Under an Off-Balance Sheet Arrangement of a Registrant, financial statements and supporting documents (Form 8-K) https://jelato-donna.com/silk-road-medical-inc-entering-into-a-material-definitive-agreement-terminating-a-material-definitive-agreement-creating-a-direct-financial-obligation-or-obligation-under-an-off-balance-sheet-arran/ Tue, 31 May 2022 20:03:07 +0000 https://jelato-donna.com/silk-road-medical-inc-entering-into-a-material-definitive-agreement-terminating-a-material-definitive-agreement-creating-a-direct-financial-obligation-or-obligation-under-an-off-balance-sheet-arran/ Section 1.01 Entering into a Material Definitive Agreement. On May 27, 2022, Silk Road Medical, Inc.a Delaware company (the “Company”), has entered into a loan and guarantee agreement (the “Loan Agreement”) between Oxford Finance LLC, as collateral agent (“Agent”), the lenders who are sometimes parties thereto and the Company. The loan agreement provides for a […]]]>

Section 1.01 Entering into a Material Definitive Agreement.

On May 27, 2022, Silk Road Medical, Inc.a Delaware company (the “Company”), has entered into a loan and guarantee agreement (the “Loan Agreement”) between Oxford Finance LLC, as collateral agent (“Agent”), the lenders who are sometimes parties thereto and the Company. The loan agreement provides for a $225.0 million loan facility, consisting of a $25.0 million secured revolving credit facility and a $200.0 million secured term loan facility. Term loans are available in three tranches. The Company borrowed the first $75.0 million
tranche of term loans at closing. A second installment of $75.0 million term loans are available through December 31, 2024. A third installment of $50.0 million
would be available through December 31, 2024 so long as, at the time of the draw, the Company has consolidated rolling 12-month revenue equal to at least 90% of the sum of the term loans outstanding plus the amount of any third tranche term loan requested. Loan proceeds may be used by the Company for working capital and general corporate purposes. From May 27, 2022there were no outstanding revolving loans and $75.0 million in outstanding term loans under the loan agreement.

At the request of the Company, the revolving credit facility will change from $25.0 million at $50.0 million. Revolving loans are available subject to a borrowing base equal to 85% of eligible receivables plus 50% of eligible inventory, to the lesser of 40% of the borrowing base or $10.0 million in the case of eligible inventory. The revolving facility will be made available to the Company once the Agent has completed its initial collateral audit.

Revolving loans and term loans mature on May 1, 2027. The principal amount of outstanding revolving loans, together with accrued and unpaid interest, is due on the due date. Term loans begin to be amortized in equal monthly installments from July 1, 2026. However, if the Company realizes specified consolidated revenues over the last twelve months, the Company may exercise its option to extend the first amortization date of the term loans until July 1, 2027. This choice can be made at the earliest June 30, 2023 and no later than thirty (30) days before July 1, 2026. If the Company exercises this option, the maturity date of the revolving loans and term loans will be
May 1, 2028.

The Revolving Loans bear interest at the greater of 1 month SOFR and 0.85% (the “Index Rate”), plus a margin of 3.00%. Term loans bear interest at the index rate plus a margin of 5.00%. The index rate is capped at 2.50% for the purposes of the loan agreement. Interest on revolving loans and term loans is payable monthly in arrears. The Company may borrow, prepay and re-borrow revolving credits without premium or penalty. Term loans once repaid or prepaid cannot be re-borrowed. Term loans may be prepaid in whole or in part in installments of $10.0 million. The Company is required to pay a prepayment charge of 3.0% for prepayments of Term Loans made in the first year after closing, 2.0% for prepayments of Term Loans made in the second year after at closing, 1.0% for term loan prepayments made in the third year after closing and no prepayment charge thereafter. On the earlier of the prepayment or maturity of the term loans, the Company is required to pay a fee of 5.0% of the aggregate original principal amount of the funded term loans, which fee increases to 6.75% if the Company exercises its option to extend the amortization date and maturity date. The Company is also required to pay other fees customary for a loan facility of this size and type.

The obligations of the Company under the Loan Agreement are secured by substantially all of the assets of the Company and will be secured by its future subsidiaries, subject to certain exceptions in the case of foreign subsidiaries. At the closing date, there were no guarantors.

The loan agreement requires the company to maintain consolidated revenue for 12 consecutive months of at least 75% of the outstanding principal amount of the term loans, measured on the last day of each fiscal quarter; or if the revenue target is not met, the Company must have maintained unrestricted cash and cash equivalents (net of outstanding revolving loans) subject to control agreements in favor of the Agent equal to at minus 50% of the outstanding principal amount of term loans. In addition, the Loan Agreement contains customary affirmative and negative covenants, including covenants limiting the Company’s and its subsidiaries’ ability to, among other things, dispose of assets, effect certain mergers, incur debt, to grant privileges, to pay dividends and distributions on their capital. shares, make investments and acquisitions and enter into transactions with affiliated companies, in each case subject to the customary exceptions for a loan facility of this size and type.

Events of default under the Loan Agreement include, but are not limited to, defaults in payment, material misrepresentation, breach of covenants, cross defaults with certain other material debts, events of bankruptcy and insolvency and lapses in judgement. The occurrence of an event of default could result in the acceleration of the Company’s obligations under the Loan Agreement, the termination of the lender’s commitments, a 5% increase in the applicable interest rate and the exercise by the lender other rights and remedies provided under the loan agreement.

The foregoing description of the Loan Agreement does not purport to be complete and is qualified in its entirety by the terms and conditions of the Loan Agreement, which is attached hereto as Schedule 10.1 and is incorporated herein by reference.

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Section 1.02 Termination of a Material Definitive Agreement.

On May 27, 2022in connection with the Company’s entering into the Loan Agreement referred to in item 1.01 of this current Form 8-K Report, the Company has terminated its Loan and Security Agreement, dated October 29, 2020 (as amended, restated, modified or otherwise supplemented from time to time, the “Terminated Loan Agreement”), by and between the Company and Stifel Bank. From
May 27, 2022there was $49.0 million in term loans and no outstanding revolving loans under the terminated loan agreement.

The terms and conditions of the terminated loan agreement were disclosed in the company’s 8-K filed on October 29, 2020which descriptions are incorporated herein by reference.

Item 2.03 Creation of a Direct Financial Obligation or Obligation Under an Off-Balance Sheet Arrangement of a Registrant.

The information relating to the loan agreement set out in point 1.01 above is incorporated herein by reference.

Section 9.01. Financial statements and supporting documents.

(d) Exhibits.

Part # Description

  10.1  †       Loan and Security Agreement, dated as of May 27, 2022, among
              Oxford Finance LLC, as collateral agent, the lenders from time to
              time party thereto and Silk Road Medical, Inc  .

† Portions of this exhibit have been omitted in accordance with SK Rule 601(b)(10).

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