Recently, there has been a rapid industrial growth in the US. And, this has changed the entire socio-economic setup of the nation. Financially, United States has grown up and has become much mature. As a result, we are now enjoying the benefits of staying in an industrially developed nation. One of the systems that have really helped the common citizen is the loan system.
Loan systems have really made life easier for the common American citizen. In the next few lines, we will be discussing the current situation of loans in the American market. A large number of private and nationalised banks are currently providing best loans for a variety purposes, from car loans to housing loans. With lesser interest rates, they have become quite popular over the years. But, the system has got a further boost from the industrial section of our society. Due to emergence of many public investment companies, people now are taking loans from these companies.
Private Banks are the first choice for people these days. This is mainly because of the fact that these banks don’t care much about official documents and work at a faster rate. But, this also has a disadvantage; their interest rates are quite high. So, for a common person, nationalised banks are the best choices. Even though they do not provide quick loans, they are more reliable and much better when it comes to financial stability.
The best loans in terms of interest rates are provided by these nationalised banks. One reason for their cheap rates is the strong hold of the Central Bank of America and Ministry of Finance over these banks. Today, one can get house loans at rates as low as 9% to 10%. Car loans are also available at cheap interest rates. Some of the leading banks have specialised loans for their customers. If you have an account in these banks, then you may enjoy special rebates and discounts too.Taking loans has another advantage. People, who take loans from banks, get special rebates on their income taxes. But, before approaching any bank for loans, one should consult his financial advisers. And, the selection of the right bank is also a key issue. A proper market research has to be done on every bank and its prospects. A bank providing better car loans may not provide good housing loans, so the client must be wise enough to sort out the best.
The earth quake and the subsequent Tsunami in Japan caused turbulence in the orate bonds market. But, the severe consequences have now subsided, as corporate bonds are recovering with companies venturing on fund recovery activity.
I-N information system, a financial information company based at Tokyo, reports that Japan is mending their debt issues in constructive, structured ans statistical ways. The total bonds issued by the corporates in July amounted to 981 billion Yen. This figure indicates that the amount is just the double of what was issued in April. Just after the March disaster, it touched the highest level in the last 10 months.
((Tsunami hit Fukushima Daiichi nuclear power plant on March)). Subsequently, this natural calamity caused to the deepening of speculation about the corporate earnings. This incident affects the yields of corporate bonds, which makes it difficult for companies to issue their debts.
According to I-N information, the issuance of corporate bonds in April came down to 515-4 billion yen which is the lowest figure since 1996.
However, gradually the amount kept on increasing and the market restored to 600 billion yen in the month of May and June. Eventually in July, the issuance raised to 1 trillion as thirty three companies discharged corporate bonds with 33 companies issuing bonds, which was only nine in April.
As nuclear power plants were badly hit by Tsunami, electric power companies began losing credibility in the market. Therefore, people refrained from purchasing their bonds. So most electric power companies stalled for sometime in issuing bonds. Only Okinawa Electric Power Co. did not hold backin issuing their bonds because it was not powered by nuclear plants. It also did not own any nuclear plants.