Loan Products Flashcards
What is Student Awards Agency Scotland (SAAS)?
They pay tuition fees £1,820 direct to (Scottish) universities, have to pay (up to) £9.25k fees elsewhere in UK
When do you start paying you SAAS loan back?
Usually starts from 6 April following end of course, collected via HMRC through PAYE/tax system, written off if unpaid after 30 years
What is the average amount of debt at course end?
£13,320 [£34,800 England]
What is an authorised overdraft limit?
An amount set by a bank which represents the amount to which a customer’s bank account is permitted to go overdrawn
What if a payment increases the overdraft beyond authorised limit?
Bank can choose to honour or ‘return unpaid’
How much will a bank charge you for an unauthorised bank overdraft?
Fee for any returned payments, monthly fee if stray unto authorised overdraft (£6-£12 or even more), charge for every payment made while exceeded
What is a personal useful for?
A defined project over specific time e.g. 2nd hand car purchase
What can credit cards be used for?
To pay for goods or services, instead of using cash or a debit card
What are store cards?
Works and feels like credit cards but only usable in certain stores
What is a mortgage?
The largest loan most individuals ever take out, a secured loan taken out to buy a property
What is the loan to value ratio? (LTV)?
Amount borrowed/Property value x 100%
What is peer-to-peer lending?
It allows individuals to borrow money from other individuals via a dedicated website
What is a hire purchase arrangement?
Provides finance for the purchase of consumer goods
What are payday loans?
Very high interest loans to individuals to enable them to meet their outgoings until their next payday at which point the loan has to be repaid
What are credit unions?
Community organisations run by and for their members to encourage all members to save regularly, to provide loans at low rates, and to help members in need of financial advice and assistance
