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Updated 21:05
PERMANENT TSB ANNOUNCED earlier today that it plans to increase its lending for education, car and personal loans with “attractive rates”.
The bank said it has set aside €100 million to fund these loans over the next year. The new loans come with variable interest rates ranging from 9.3 per cent APR for a car loan of €20,000 to 14 per cent APR for a personal loan less than €5,000.
Rates for education loans will start at 9.9 per cent APR with the bank saying that 66 per cent of parents borrow for their children’s education.
A new product being launched by the bank will see its financial advisors help customers to take stock of their big annual bills for the next 12 months and manage them into a payment plan. This involves a 12-month loan from the bank at a rate of 9.9 per cent APR to be spread over monthly bill repayments.
Another new product, called ‘Build ‘n Borrow’ allows customers saving more than €70 a month with the bank to borrow four times the amount they have saved after six months.
Commenting today, Head of Consumer Finance at the bank, Miriam Bloom, said that the return to the personal lending market is part of a broader plan to resume normal banking services.
First published 16:10.
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At 14% APR compared to 6.9% at Credit Union. No Thanks PTSB :)
Completely agree.
That’s a secured loan. Closer to 12% unsecured in a credit union.
Where did they get 14% APR??
Picked out of someones arse no doubt!
Credit Union all the way!
Also dont forget at the CU the interest is calculated on the decreasing balance due not the initial amount borrowed
14% for loans less than €5,000 sounds pretty much extortionate. Is this the norm with other banks?
Tony soprano would give you a better deal. He’d only charge two points. But if you miss a payment the difference gets tacked on to the principal. Oh, and someone will call for it every Saturday.
Thats funny.
They actually had a guy from the Sopranos hawking their rubbish a few years back.
http://www.youtube.com/watch?v=ZTtCuxqJnL8
I’ll take my chances with my Credit Union PTSB.
I don’t think that they will be costing the taxpayer €4 Billion anytime soon.
That’s 2 points per week, so 180% Apr. Plus its secured…on your life!!
I think I will wait until they start the 100Per cent morgages,
As long as they accept David Drumms terms & conditions for repayments, I’m in.
build n borrow sounds like credit union!
Daylight robbery with ECB rates at a record low they are chancing their arms big time. Just shows that they think the public are completely stupid. Then again, I suppose historically speaking…
Yeh. Lets all go to Wonga instead. No forms to fill in like those pesky banks.
In fairness to them they aren’t any worse than the other banks but it’s still an insane rate of interest! You can get a credit card with similar rates!
APR of 14% In other words, they don’t really want anyone to take out a loan with them.
I would’nt trust their advisers as far as I could throw them. Once bitten twice shy.
Do P.T.S.B still have the policy of not even accepting a loan application unless the applicant is earning over 35000 euro per year as a minimum?
No.
I lament the loss of my free PTSB shares. I should have sold when they were gold..now worth 3 cent each. Well you cant lose what you never had. ..stuff their loans too
Good news!
Thats exactly how banking works George.
That’s not how banking works omg have you been in a cave??? Next you will be talking about gold standard!!! The reason we are in this mess is naive thinking and poor financial literacy.
I personally think they should keep the gold standard.
Indeed
Learn, jump in the car and emigrate!
Fcuk Off PTSB.
You bust yourself 5 years ago and cost us a fortune.
Now Fcuk Off.
Must be the cheapest advertising they’ve ever had.
So if I educate a car I get double???
Considering the ECB interest rate is 0.5% these are absolutely ridiculous rates
I’ll have some.
To clarify, I’ll pay it back when I can…. “which is never!”
I’ve learned how to bank lately.
Education is not spelled “educatin” back to school!!
Well done!
Hey I didn’t give them my permission to spend all my 100 million in next 12 months….they’re all sacked in morning….must be the effect of the sun..
Ptsb are a disaster ! I had to leave them years ago and at that loan rate I won’t be running back either ! I ll never forgive them for robbing the shareholders during the merger years ago , they gave cash bonuses to the staff instead of the people !!!
Here here Joann. Plus they lied through their teeth during their first stress test, only to be found out during the second. That’s FRAUD! Their share price stayed up just long enough in the interim for the crew to abandon the doomed vessel. In America that action would send them to prison.
Loans for new cars! – whisper, you dont make any in Ireland.
Loans for car maintenance and repair …. not that’s financial literacy.
Permanent TSB will linger on for another 2 years at most unless it gets another massive bail out at the expense if he tax payers. That’s reality.
Thats the reason i dont bank anymore with them.
Hey TSB give me a ford Lincoln, a masters and a back of 20 benson
14% !! Christ it’d be nearly cheaper buying the car on a credit card !
Build and borrow smacks of the already well functioning credit union model does it not?
14% is the top end of the range… Will be paid by risky borrowers with a history of bad credit, defaulting and missed payments.
Ie. they same individuals currently taking out pay day loans at 900% APR
Is this money not belong to the taxpayer it should be giving back free
have your say