Permanent TSB is set to increase lending for cars and personal loans over the course of the next year, with attractive rates. The bank will set aside Ђ100 million to cover such loans as part of a broader plan to resume normal banking services.
The move comes alongside several new financial products the bank will be launching. Customers can take advantage of financial advisers who can help them control their large annual bills for the next ten months and organise a payment plan. The bank is also introducing ‘Build ‘n’ Borrow’, which allows customers to borrow up to four times the figure they have saved after six months. A minimum figure of Ђ1,500 applies, up to Ђ24,000.
“Banks make money by lending so it’s imperative that we return to sustainable, sensible and profitable lending as soon as practicable and we are committed to doing so this year. Our key aims are to re-establish permanent tsb as a significant third player in the Irish banking market and to return to profitability in 2016. We are well on our way to achieving those targets,” said Group chief executive, Jeremy Masding in January this year.
These steps are part of the bank’s overall restructuring plan laid out at the beginning of the year. The bank said then that it plans to lend around Ђ350 million into the mortgage market, Ђ5 million in new credit card finance and Ђ100 million into personal finance. “We want to lend responsibly, at the right price for the underlying risk. We think that by returning to basic banking principles – with proper credit risk analysis – we can rebuild trust with customers who want and deserve access to credit. We have a national presence, staffed by committed people who are proud of their profession and who want to re-connect with their customers.”