13 Aug Loan Portfolios, How To Manage And Best Features
Loan Portfolios Also known as a loan portfolio, it is the set of underlying assets that are contained and managed by financial institutions, whether they are banks, investment firms, or even government agencies.
Among the main objectives of managing the loan portfolio is to reduce the strategic risks associated with lending activities. Any wrong strategic or tactical behavior in matters such as collateral standards,
credit portfolio growth, launching new types of loans, and geographical distribution of loans may threaten the bank’s future.
The bank provides loans from private investments to citizens who have fulfilled their right to obtain real estate loans, up to a maximum of 10,000 Kuwaiti dinars.
An amount of two dinars will be received per month over the loan period to meet debts that are not paid for reasons of force majeure,
as the monthly installment is considered fixed and includes the special amount in two dinars.
Loan portfolio terms
That the house needs expansion and renovation, as well as that the borrower has executed his right to borrow,
and that he does not owe the bank a mortgage.
Except for this condition, an eligible person with a disability may combine a portfolio loan with a mortgage loan stipulated in Law No.
47 of 1993 regarding housing, which was amended by Law No. 7 of 2005, in addition:
- One of the necessary conditions for the loan applicant is to have the ability to make the specified payments.
- Can he not lend the house in whole or in part?
- Not owning another real estate or owning shares in real estate whose value exceeds KD 300,000.
- If the rest of the conditions mentioned in the real estate loan regulations applied in the bank and which do not conflict with the conditions of the financial portfolio are fulfilled,
- That period not less than fifteen years have passed since the acquisition of the property.
- If thirty years have passed since the construction of the government house or private housing,
and a two-month grace period is granted to persons desiring this category to start receiving the second category
if the proportion of the first category does not reach 2,500 loans per year.
Instructions for benefiting from loan portfolios
It is permitted to provide loans from the financial fund to citizens who have been allocated permanent government homes (ownership) and have not been issued title documents.
Loans are also permitted to those who have government homes allocated to them as (rent).
By the conditions and controls stipulated in the previous clauses, loans are provided to those to whom houses have been allocated on a rental basis, in addition to the above, as follows:
- There are no loans due to the family at the bank.
- The loan must be repaid once only, and the money may not be lent back thereafter.
- The loan is used only for restoration purposes and is disbursed by the procedures approved by the bank.
- Provide a sufficient guarantee to repay the loan.
Documents required for loan portfolios
Financial loans can be granted according to the conditions and controls specified in the previous paragraph, and to obtain loans,
the persons to whom the houses have been allocated as rent must meet the following conditions:
- If the employer is not one of the entities with which it has been linked electronically, a detailed salary certificate is required from the employer.
- If the borrower’s father died, he must submit a copy of the inheritance inventory and a certificate from the Ministry of Justice and Land Registration in the name of the deceased.
- When the surname or name is changed, a copy of the amendment ruling and the amendment of the marriage contract must be provided and the required certificates of the previous and new names must be brought.
- A copy of the property document for which the loan is requested.
- Building permit copy.
Advantages of digital loan wallets
Digital wallets are mobile applications that store credit card and bank account information.
They can be used to make online and in-store purchases. They eliminate the need to carry a cash wallet and credit cards to complete purchases.
Thus, digital wallets are witnessing an increasing popularity around the world,
due to their ease of use and more security than traditional payment methods,
and some expect that digital wallets will replace cash and credit cards.
Having access to credit cards, loan wallets, and bank accounts without the need for a physical card or cash greatly facilitates shopping.
Simply make in-store purchases with an easy swipe of your smartphone, and you are not required to supply sensitive personal and financial information when making online purchases.
How does a digital wallet work?
A digital wallet is software that enables you to perform electronic transactions using your smartphone, mobile device, or computer.
A digital wallet connects to your account associated with the vendor when a transaction is made.
Whether it is a connected balance or a checking account, the most common form of a digital wallet is a smartphone application.
To start using a digital wallet, it is as follows:
- You must first download the application on your smartphone or mobile device.
- You need to make sure that your device is compatible with the app you are going to use, for example, you can use Apple Pay on an Apple device, Samsung Pay, or Google Pay on an Android device, etc.
- After downloading the application, you will need to set up your account. Once you have created your account,
you will have to enter your credit card or ID information.
- You must research and make sure that the company is credible before you provide your information.
Top 3 benefits of digital wallets
Digital wallets have become very popular with consumers and retailers alike, why are digital wallets so popular? What are some of its benefits?
There are many reasons why digital wallets are so popular,
one of the main benefits is that they are more secure, as well:
- Digital wallets cannot be stolen or lost in the same way that traditional wallets can be stolen or lost, as the data stored in them is encrypted and your actual account numbers are not transmitted during the trading process.
- Instead, a unique token is generated and shared with the merchant to complete the purchase, and upon completion of the transaction, these tokens have no value.
- In addition, digital wallets help make managing our money easier,
as they eliminate the need to physically carry cash or credit cards, and some allow users to withdraw cash from ATMs.
Loan wallets store all our financial information within the app, allowing us to review our balances and transaction history.
In addition, digital wallets can be used to store credit and debit cards,
thus providing a convenient way to manage and pay money, as follows:
- Driver.s license and other default identifiers.
- Also insurance cards.
- Electronic coupons.
- Also gift cards.
- Boarding passes.
The importance of loan portfolios
Because of its ease of use, loan wallets provide an enhanced shopping experience for users. Users have to remember only one password, without having to remember multiple passwords.
Digital wallet applications can be used for online purchases, making deposits, paying bills, and transferring funds.
Wallets provide benefits to merchants as well, transactions are more secure and the chance of fraud is reduced,
conversion and withdrawal are easy and smooth, resulting in increased sales and fewer abandoned carts.
At the end of the article, we have provided you with the most important details of loan portfolios,
the advantages of using them, as well as the best conditions imposed by some banks and financiers in the Arab world.