Scbi loan scheme

morphy87

Just wondering has anyone here ever applied for a loan under this low interest scheme and if so how did it work out for you and what was the purpose of the loan? It seemed like a good scheme and it is meant to be available again by the end of the year, I would like some information if possible thanks

paddysdream

Know the first time these low interest loan schemes were introduced a few years ago the uptake was rapid (Bank of Ireland anyways)
Enquired and had appointment on a Friday morning shortly after it opened. Got call on Thursday evening to say all banks allocation gone.
Was told later that should have application done long before scheme opened.
Looked at last one but not interested at time.
Might wait till next one.BofI looking 5% for 5 year term at moment from me but thats without seriously pushing it.
Think you could really put in anything ,legacy debt,credit card , merchant credit etc along with all the usual stuff in for the first one.
Think banks were rather surprised by the amount of debt some of their customers owned up to .

morphy87

paddysdream wrote: »

Know the first time these low interest loan schemes were introduced a few years ago the uptake was rapid (Bank of Ireland anyways)
Enquired and had appointment on a Friday morning shortly after it opened. Got call on Thursday evening to say all banks allocation gone.
Was told later that should have application done long before scheme opened.
Looked at last one but not interested at time.
Might wait till next one.BofI looking 5% for 5 year term at moment from me but thats without seriously pushing it.
Think you could really put in anything ,legacy debt,credit card , merchant credit etc along with all the usual stuff in for the first one.
Think banks were rather surprised by the amount of debt some of their customers owned up to .

It’s meant to be coming back around the autumn,what do the banks look for when applying for this? I presume just the normal stuff that they require when looking for a loan

If the scheme had not closed would you of getting it do you think? What can you use the money for can you remember or what can you not use it for?

From reading about it, it seemed a very good way of borrowing money

paddysdream

morphy87 wrote: »

It’s meant to be coming back around the autumn,what do the banks look for when applying for this? I presume just the normal stuff that they require when looking for a loan

If the scheme had not closed would you of getting it do you think? What can you use the money for can you remember or what can you not use it for?

From reading about it, it seemed a very good way of borrowing money

This is probably not the correct advice but;

Figure out what you are borrowing for,how much you need etc .
Then if what you are borrowing for is acceptable under the terms and conditions its grand and if not ie no borrowing to pay say a credit card bill or buy a new mower then you will have to "tweak" your application slightly.
Again not good advice but the bank really don't care where the money goes after you are approved and draw it down as long as you repay it back as agreed.
Tell them you are building a shed and they won't be looking for invoices for concrete and steel or out in the yard taking pictures.Only thing is that it would be harder to go looking for money for the same thing again before first one is paid as the question would be why do you need another whatever .
That's for term loan etc.Finance on a machine is obviously different as an invoice etc will be required and funds usually paid direct to the dealer .

From memory think you need to apply to SBCI for approval in principle as to your eligibility and then the bank will look at your proposal,repayment capacity etc as per any other loan.
They are unsecured as far as I know although this really is not the same as the lending institution having no comeback.
Most people will have some security with the bank if borrowing any amount ,be it a charge on your deeds or as a mortgage on land .

Know Bank Of Ireland go to 120k unsecured at the moment.This would include your total exposure ;term loan ,overdraft ,stocking loan,seasonal loan whatever.

All the above is what applies to me ;others may have a different experience or terms .

Done an 80k application recently over 5 years .Took about 5 mins on phone.Basically;Text business loan to some number .Get return phonecall next day .Standard boilerplate ID stuff,this is recorded etc etc .Then ;what you want it for ; are you tax compliant ;have your EU payments stayed at a similar level ;what are your stock numbers ;from what will repayments be made ; What time of year suits and how many times a year ;

Bang bang bang ;interest rate is whatever;repayments are x per year on December 31st ;cost of credit is y .Loan approval lasts for 30 days.
Looks good ,will put it to our underwriters and let you know within 24 hours.
Next morning text and email saying all ok.Open email and electronic signature and funds in account same day.
Got to the "open email " part and stopped.Will think about it for a little while and see.

Its for a long term thing and perhaps might wait and see how the year pans out before committing.

Like I said the above is my take on it.Everybody will have a different experience depending .

morphy87

paddysdream wrote: »

This is probably not the correct advice but;

Figure out what you are borrowing for,how much you need etc .
Then if what you are borrowing for is acceptable under the terms and conditions its grand and if not ie no borrowing to pay say a credit card bill or buy a new mower then you will have to "tweak" your application slightly.
Again not good advice but the bank really don't care where the money goes after you are approved and draw it down as long as you repay it back as agreed.
Tell them you are building a shed and they won't be looking for invoices for concrete and steel or out in the yard taking pictures.Only thing is that it would be harder to go looking for money for the same thing again before first one is paid as the question would be why do you need another whatever .
That's for term loan etc.Finance on a machine is obviously different as an invoice etc will be required and funds usually paid direct to the dealer .

From memory think you need to apply to SBCI for approval in principle as to your eligibility and then the bank will look at your proposal,repayment capacity etc as per any other loan.
They are unsecured as far as I know although this really is not the same as the lending institution having no comeback.
Most people will have some security with the bank if borrowing any amount ,be it a charge on your deeds or as a mortgage on land .

Know Bank Of Ireland go to 120k unsecured at the moment.This would include your total exposure ;term loan ,overdraft ,stocking loan,seasonal loan whatever.

All the above is what applies to me ;others may have a different experience or terms .

Done an 80k application recently over 5 years .Took about 5 mins on phone.Basically;Text business loan to some number .Get return phonecall next day .Standard boilerplate ID stuff,this is recorded etc etc .Then ;what you want it for ; are you tax compliant ;have your EU payments stayed at a similar level ;what are your stock numbers ;from what will repayments be made ; What time of year suits and how many times a year ;

Bang bang bang ;interest rate is whatever;repayments are x per year on December 31st ;cost of credit is y .Loan approval lasts for 30 days.
Looks good ,will put it to our underwriters and let you know within 24 hours.
Next morning text and email saying all ok.Open email and electronic signature and funds in account same day.
Got to the "open email " part and stopped.Will think about it for a little while and see.

Its for a long term thing and perhaps might wait and see how the year pans out before committing.

Like I said the above is my take on it.Everybody will have a different experience depending .

So really once they can see you have the capacity to pay the loan there not too bothered what you use it, all though the application form may have to be altered

Is Bank of Ireland all over the phone now or can you still go into a branch and meet someone personally? It was the last time I dealt with them, not fond of online

paddysdream

Last time in branch to actually meet someone was probably 3/4 years ago.
More phone than online really.
Have done all stocking loan stuff on phone with business lending section in Dublin for last few years.Would ring local branch and talk to whoever was handling my account beforehand just to run through things.
Big changes from when I started here.
Then you went in to see manager ,most likely dealing with same person for 4 or 5 years.
In one sense easier as could build up a relationship ( in those days he would ring to say you were x over the overdraft limit, he had approved a temporary increase of say 1k but please clear it in a month.Letter with temporary permission would land maybe a week later)
Nowadays its strictly by the book ;no mon no fun.
On the other hand actually prefer it the present way at times.
Bit impersonal thought as never dealing with same person twice.
I signed up for electronic signature so once i get approvsl for anything its just a case of open the email , do the signature and money in current account within 24 hours max.
Speedy and all done from phone at home in the field etc.
No filling out stuff online etc involved for me .

paddysdream

Repayment capacity is and should be the most important criteria.
Security is grand but not much use to the lending institution in a lot of cases.
Friend looked for about 500k couple of years ago Land and family thing).Security not an issue as his land assets would exceed this by 5 fold but a no go as repayment capacity not there.

Mooooo

6 different business managers, or whatever they call themselves these days, in the last 10 years. Local branches do feckall really. Everything decided in Dublin anyway
When they say low cost loans what interest rates are they talking about?

morphy87

Mooooo wrote: »

6 different business managers, or whatever they call themselves these days, in the last 10 years. Local branches do feckall really. Everything decided in Dublin anyway
When they say low cost loans what interest rates are they talking about?

I read on the farmers journal in March about it,they said what was so attractive about it was the interest rate was only 2.95%,that’s why the scheme filled up so quickly

Your right about these business managers, they change too quickly, it would be nice to deal with someone for a prolonged period

paddysdream

The difference between 5% and 3% on 50k over 5 yeats is ballpark 600 a year or about 3k in total.Nice saving all being equal but that depends on terms and conditions really.Another 1k in costs would eat into any saving and even moreso on a smaller amount borrowed.
Although interest rates are very important they really shouldn't be the only thing considered.

paddysdream

morphy87 wrote: »

So really once they can see you have the capacity to pay the loan there not too bothered what you use it, all though the application form may have to be altered

Is Bank of Ireland all over the phone now or can you still go into a branch and meet someone personally? It was the last time I dealt with them, not fond of online

A lot depends on where you are in life I feel.
Bookwork here would not support any meaningful borrowing .Started many years ago farming at 17 with an overdraft and a loan to buy sucks.In debt for most of my farming life .Have ever only been late once and that was a 10k final payment on a 7 year loan.Ran about 2 months over as was waiting on money for hirework.Was promised it in November but it didnt appear till February.
If he had said he couldn't pony up till February then I could have at least got my ducks in a row.

All above means i should have a goodish record which is a serious help.
Remember going with my (future) wife many years ago as she decided to buy her first bill phone (well old romantic me was paying )
All grand till computer said no.
She wouldnt get it without signing for direct debit on her card which highly offended her whilst poor me had no bother getting one a couple of years previously despite maybe a 80k difference in bank balance ie me dowm 40k and her with that in the bank (ah different times having 4 euro in the account can feel like wealth let alone 10k times that)

morphy87

paddysdream wrote: »

Know the first time these low interest loan schemes were introduced a few years ago the uptake was rapid (Bank of Ireland anyways)
Enquired and had appointment on a Friday morning shortly after it opened. Got call on Thursday evening to say all banks allocation gone.
Was told later that should have application done long before scheme opened.
Looked at last one but not interested at time.
Might wait till next one.BofI looking 5% for 5 year term at moment from me but thats without seriously pushing it.
Think you could really put in anything ,legacy debt,credit card , merchant credit etc along with all the usual stuff in for the first one.
Think banks were rather surprised by the amount of debt some of their customers owned up to .

I see you said bank of Ireland are looking for 5% over a 5 year loan, when you mean by not pushing it do you mean they would go lower than the 5%? I just presumed when a bank gives a figure that’s it?

paddysdream

morphy87 wrote: »

I see you said bank of Ireland are looking for 5% over a 5 year loan, when you mean by not pushing it do you mean they would go lower than the 5%? I just presumed when a bank gives a figure that’s it?

Usually is but if you tweak it a bit it can change.Loans for differing purposes have varied interest rates ie buy to let mortgage rate is usually different to owner mortgage rate.
Less variation with farm loans esp. when we are down to 2 mainstream banks but sometimes a bank will offer a more favourable rate if you meet all the criteria.

Ok that's not explained very well so will come back to it .