View more on these topics

Secured loan business down 20% year-on-year

The latest figures from the Finance & Leasing Association show secured loan business in October was down 20% compared to October 2009.

There was £24m worth of secured loan business carried out in October and £70m in the three months to October 2010.

Overall, secured loan business amounted to £301m in the 12 months to October 2010, down 29% on the same period the previous year.

Across all channels, consumer lending was down 8% in October. Some sectors saw much larger declines, including the credit offered by high street retailers, which totalled £297m in October compared with £426m in the same period last year. The value of new store card finance fell by 33% and store instalment credit by 27% compared with October 2009.   

Fiona Hoyle, FLA Head of Consumer Finance, says: “The latest figures show a continued decline in most types of consumer credit, and particularly for store cards and in-store credit. We hope the Government will therefore think very carefully before imposing any further regulatory restrictions on these markets.

’For example, interest-rate caps on credit and store cards and cooling-off periods for store cards could drive some lenders out of the market and further reduce access to affordable credit.” 

Recommended

November’s gross lending hits 10-year low

Gross mortgage lending in November was an estimated £11.1bn, a 5% drop from the £11.6bn in October and the lowest November total since 2000, show the latest figures from the Council of Mortgage Lenders.

India Election Update

What a difference six months makes. Speaking in September last year, we had warned of ‘excessive pessimism’ afflicting the market’s perception of India. Since then, responsible central bank policy from the Reserve Bank of India (RBI), alongside improving global growth, has meant that India’s macro environment is strengthening quickly. The current account deficit has shrunk, inflation is falling and the government has embarked on a heavy dose of much needed fiscal consolidation. As a result, the rupee has been one of the strongest global currencies this year while the market has touched all-time highs, rallying by more than 20 per cent (GBP) since September. This begs the question: are we now in a period of ‘irrational exuberance’? Not yet.