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Deciphering 10 Myths Around Personal Loans – Forbes Advisor INDIA

Personal loans are a credit tool that can be used to finance most major purchases and expenses, from engagement rings to home repairs, often at a lower interest rate than paying with a credit card. Unlike credit cards, personal loans provide borrowers with a one-time cash flow. Then the borrowers pay back this amount, the so-called principal amount, together with the interest in regular monthly installments over the term of the loan, the so-called term.

Due to the advancement of technology, it takes less than ten minutes to apply for a personal loan on the internet, where digital lenders offer various types of personal loans. The entire process from application to payout takes less than a day and the loans are often customized to suit your needs.

As with any other financial decision, getting a personal loan involves several questions, such as:

  • Which Lender to Choose?
  • What type of personal loan to choose?
  • How do I get a personal loan?

While answering these questions is important, it is equally important to break the myths surrounding personal loans first, as they can tarnish judgment as they seek answers.

Myths Related to Personal Loans

If you are a first time borrower, you may be nervous about taking out a loan. Obtaining a personal loan can be expected to be a time consuming process or involve high interest rates or collateral on your loan. There are numerous myths surrounding personal loans that often discourage individuals from getting a loan when they really need access to finance. Here is a list of ten personal loan myths.

1. Personal loans are only offered by banks

The most common misconception about personal loans is that banks are the only financial institutions that offer personal loans. While banks are a part of the financial institutions that offer credit, there are several Non-Bank Financial Firms (NBFCs) that offer personal credit.

In several instances where banks can refuse an applicant’s loan application due to rigid norms, NBFCs and other digital lenders often accept these borrowers’ applications at similar interest rates and with more customization.

2. Personal loans have a long processing time

Borrowers often forego applying for a personal loan, as this involves a relatively longer processing time and a cumbersome approval process. This may have been the case in the past, but it isn’t entirely true in 2021.

The entire process from applying for the loan to be paid out in your account can now be completed within 24-48 hours. One has to fill out the application online and upload the required documents, which takes just a handheld device and less than a few minutes.

3. Low credit means credit rejection

A low credit score can affect the outcome of your loan application, but it does not guarantee a rejection. While it is an important criterion for approval, lenders also take into account other factors such as: age, income, authenticity of documents, fixed obligation to income ratio, etc.

Credit policies and eligibility criteria may vary from lender to lender, but the main assessment for loan approval is your ability and intent to repay.

4. Personal loans cannot be used if you already have an existing loan

Several loan applicants believe that if they are already paying back an existing loan, they cannot get a personal loan. It does not, and the same criteria apply to sanctioning a second personal loan as the first.

You can apply regardless of whether you already have credit or not. Your lender will review your repayment eligibility application taking into account your income, cash flow, and existing liabilities.

5. Personal loans require a security

Personal loans are unsecured loans and do not require collateral and therefore require minimal documentation. This is also one of the decisive factors why processing a personal loan is quick and easy.

6. Only employees can apply for personal loans

It is a popular belief that only employees with a steady flow of income are eligible to apply for a personal loan. However, individuals and entrepreneurs can also take advantage of personal loans.

The credit decision is not determined by the profession, but by the individual’s ability to accept credit and the ability to service the loan on a regular basis.

7. Personal loans always have high interest rates

Because personal loans do not require collateral, they are believed to come with very high interest rates. In reality, the interest rate differs from lender to lender and often depends on your credit profile.

The interest rates are usually between 16% and 24% per year and are therefore significantly lower than available with credit cards. Additionally, you are not required to pledge any security or freeze any asset, which makes it a better deal if the exchange rate is a few hundred rupees.

8. Personal loans have no prepayment option

Another myth about personal loans is that the borrower cannot repay the loan amount before the loan term expires. Just because personal loans have shorter terms doesn’t mean that personal loans don’t have prepayment options.

While banks may charge a small prepayment fee, these days digital lenders typically only have a minimum term for which individuals must make the monthly installment payments (EMI). After the minimum term of three to six months, for example, borrowers can cancel their loan at no additional cost.

9. Taking out a personal loan will only increase your debt burden

This seems logical, because taking out a personal loan when you are already in debt only adds to your burden. However, you can refinance all of your debts including multiple loans, credit card debt through one personal loan, thereby consolidating all of your debts and paying only one monthly fixed rate installment that matches your cash flows.

10. It is difficult and complex to apply for a personal loan

Compared to a car loan or a home loan, getting a personal loan can be a much easier process. Applying for a personal loan these days is as easy as filling out an application online and waiting from a few minutes to a few hours for approval.

The process is so simple that you don’t need any help, but even if you do, you can contact a digital lender’s customer service team and get help right away.

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Best secured cards that get too unsecured

Citi is an advertising partner.

Do you need to fix an ailing credit score? Alternatively, do you need to keep a credit history so you can even qualify for a three-digit FICO credit score? If you apply for a secure credit card and make your monthly payments on time, you can achieve both of these goals. You can even qualify for a secured credit card that will automatically upgrade to a traditional card after you’ve made enough on-time payments.

Here’s a look at the best secured credit cards, which are evolving into traditional, unsecured cards over time, and how these cards can help you resolve your credit history and creditworthiness issues.

What is a secured credit card?

Secured credit cards work much like traditional cards: you use these cards to make purchases throughout the month and then withdraw at least some of those purchases on or before your card’s due date. If you settle your balance in full, you will not owe any interest. If you pay out less than your full balance, your credit card provider will charge you interest on the remaining balance.

With secured cards, however, you make an initial deposit at the bank that provides the card. This deposit usually becomes your credit limit. If you apply for a secured card, you can deposit $ 600 at your bank. Your credit limit for this card will then be $ 600 and you will not be able to raise any charges equal to that amount.

This limits the amount you can spend and makes it easier for those with damaged or limited credit histories to qualify for secured cards. By setting this limit, card providers take a lower risk; If you fail to pay your credit card bill, the bank can simply deduct the amount owed from your deposit.

For this reason, secured cards are a great choice for consumers who have low credit scores or who don’t have a credit history long enough to get good credit (or a notch at all). As long as you make your monthly payments on time with your secured credit card, you will gradually build a strong credit history and solid credit history. If your score is high enough, you can apply for traditional, unsecured credit cards.

Some secured credit cards automatically become traditional cards after you make enough timely monthly payments. The number of payments varies by card issuer, but many secured cards become unsecured versions if you make at least nine to 12 on-time payments in a row.

How do secured cards differ from unsecured credit cards?

You may be wondering, “What is an unsecured credit card?” The main difference between secured and unsecured credit cards is the security deposit required with secured cards. Traditional, unsecured credit cards do not require cardholders to make deposits with their issuers.

The credit limits for unsecured cards are not tied to a deposit, but are determined by the credit of the cardholder. Cardholders with a higher credit score qualify for higher credit limits. It’s not uncommon for consumers with the highest FICO credit scores – usually 740 or higher – to qualify for credit limits of $ 20,000 or more with their unsecured credit cards.

Unsecured credit cards also usually come with more generous rewards programs. Many traditional credit cards allow cardholders to accumulate award points, free miles, or cashback bonuses, while few secured cards offer award programs. This benefit, along with higher credit limits, is why most consumers prefer unsecured credit cards.

Best secured cards that get too unsecured

Which secured cards are automatically updated to unsecured? Here’s a look at some of Bankrate’s top picks.

Discover it® Secured Credit Card

The Discover it Secured Credit Card is one of the few secured cards that comes with a rewards program. Get 2 percent cashback at gas stations and restaurants on combined purchases of up to $ 1,000 per quarter. You will also receive unlimited 1 percent cashback on all other purchases.

The card has no annual fee and allows you to open an account with a deposit of just $ 200. After eight months, Discover will review your payment history and credit history to see if you can switch to an unsecured Discover credit card.

BankAmericard® secured credit card

While it’s a fairly simple card, the BankAmericard Secured Credit Card has some nice perks. There is no annual fee and all you need is a $ 300 deposit to open an account. In addition, this card allows you to deposit up to $ 4,900 – a high maximum deposit compared to other secured cards.

On their website, Bank of America says they will regularly check your account to see if you can upgrade to an unsecured Bank of America credit card.

Capital One Platinum Secured Credit Card

You don’t need a lot of cash to open an account with the Capital One Platinum Secured Toll Free Credit Card. In fact, Capital One requires a deposit of just $ 49. Keep in mind that your initial credit limit can also be low – just $ 200 more specifically. After six months, Capital One will begin reviewing your payment and account history to see if you qualify for a higher credit limit or an unsecured Capital One credit card.

Citi® Secured Mastercard®

Although you need a minimum deposit of $ 200 to qualify for the Citi Secured Mastercard, you are flexible. Depending on how much you deposit, you can qualify for a line of credit up to $ 2,500. Like other cards on this list, the Citi Secured Mastercard does not charge an annual fee. After 18 months of card ownership, Citi will review your account to see if you are eligible for a refund of your deposit and may upgrade to an unsecured Citi credit card.

How to update if your secured card doesn’t do it automatically

Some secured credit cards are never upgraded to an unsecured version. In these cases you will have to switch to a conventional credit card yourself.

First, you need to have a good enough credit rating to qualify for a traditional card. You typically need a FICO score of 680 or higher to qualify for traditional credit cards that also offer rewards programs. Fortunately, getting this score isn’t complicated.

The most important step is to pay your bills on time. For example, paying your mortgage, credit card bills, or student loan overdue for 30 days or more can drop your FICO credit score by 100 points or more. On the flip side, paying bills on time can help keep your score steadily growing.

Also, make sure that your credit card debt is low or nonexistent. If you have too much debt month to month, your credit score can go down. Always try to withdraw as much as you can on each due date, knowing that it is best to withdraw all of your balance on or before the due date. Not only does this help your credit score, but it also ensures that you don’t have to pay extra interest on your credit card debt.

Once your score is high enough, apply for a traditional credit card. Depending on your score and other factors such as B. Your monthly income, you can qualify for an unsecured card that comes with a higher credit limit and a rewards program.

You’ll need to decide whether to close your secured card or leave the account open, but be aware that closing your card could affect your creditworthiness. Closing an active credit card account will leave you with fewer funds – which in turn may increase your credit utilization.

This does not mean that you should always leave your secured credit card account open. If you feel that you might be tempted to pile up debts on the card and not pay it off in full, it may make more sense to close the account and remove the temptation.

This will increase your chances of qualifying for an unsecured credit card

The best way to qualify for an unsecured credit card is to practice good spending and payment habits. If you pay your bills on time each month – including paying your secured card – you will continually build a credit score or improve a poor one. You will also improve your credit score by paying off existing debts.

How long it takes to build a credit rating high enough to qualify for an unsecured card varies. If your score is low, it can take months to make payments on time to get your score up to the 680+ range likely to be required to qualify for an unsecured credit card.

The bottom line

Secured credit cards are a smart way to build your credit history so you can qualify for an unsecured credit card in the future – one that comes with a higher credit limit and valuable rewards. The key is to make your monthly payments on time and keep your debt low so that one day your secured card will be converted to an unsecured version.

All information about the BankAmericard® Secured Credit Card has been collected independently by Bankrate and has not been reviewed or approved by the issuer.

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Avant Personal Loans Review 2021 – Forbes Advisor

The best personal loans offer competitive rates, flexible loan amounts, and a wide range of terms. Here’s how Avant Personal Loans compare to other popular lenders:

Avant vs. SoFi

SoFi offers higher loan amounts ($ 5,000 to $ 100,000) than available through Avant, and APR starts at around 6% with Autopay – which beats Avant’s lowest rate. Likewise, Sofi’s maximum APR are around 20%, while Avant’s rates are almost 36%. SoFi also has a longer credit period (two to seven years).

Affect: SoFi Personal Loan Review

Avant vs. LightStream

LightStream personal loans range from $ 5,000 to $ 100,000, and the APR starts below 3% (for some lending purposes) for borrowers who sign up for auto-payment. The rates are capped at just over 20%. This means that LightStream borrowers with the highest credit scores can access rates that are much lower than Avant’s best. However, LightStream’s eligibility requirements make qualification difficult, while Avant has a low pass mark.

The LightStream loan terms are also more extensive than Avant loans, with terms ranging from two to 12 years, depending on the purpose of the loan.

Related: LightStream Personal Loan Review

Avant vs. Marcus

Marcus offers smaller personal loans than some of its competitors, with options ranging from $ 3,500 to $ 40,000 – similar to the loans offered by Avant. Prices start at around 7% but end at around 20%, which is still significantly more competitive than Avant’s APR. Marcus does not charge any processing, prepayment, or late payment fees, and borrowers can save 0.25% on their APR when they sign up for an autopsy.

Related: Marcus Personal Loan Review

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The personal loan market will boom | LightStream, social finance, payout

Advance Market Analytics published a new research publication on the subject of “Personal Loans Market Insights, to 2026” with 232 pages and enriched with self-explanatory tables and graphics in a presentable format. In the study you will find new developing trends, drivers, restrictions and opportunities that are generated by targeting market-related stakeholders. The growth of the personal loan market was mainly driven by increasing R&D spending worldwide.

Some of the key actors portrayed in the study are:

LightStream (USA), Social Finance, Inc. (USA), Citizens Financial Group, Inc. (USA), Marcus Goldman (Germany), FreedomPlus (USA), Payoff, Inc. (USA), OneMain Holdings, Inc. (United States), Avant, LLC (United States), Prosper Marketplace, Inc. (United States), LendingClub (United States)

Get a Free Exclusive PDF Sample Copy of This Study @

Scope of the Personal Loans Report

Personal loans are those loans that help meet the current financial needs of the user. It is used for various purposes such as home renovation, medical emergencies, wedding, education, travel, among others. It offers various advantages such as:I don’t need any collateral, I can borrow any amount, the interest is reasonable,™You do not need a large loan, you have a lot of time to pay and other things.

The titled segments and subsections of the market are highlighted below:
By type (unsecured personal loans, secured personal loans, fixed rate loans, floating rate loans, debt consolidation loans, loans with signature, personal lines of credit, other types of loans), interest rate (10% -15%, 16% -20%, 20% or more), loan amount (0 -5000 USD, 5000-50000 USD, 50,000 USD or more), Purpose (home renovation, wedding, education, travel, other), tenure (Less than 1 year, 2-3 years and 4-5 years), Source (Bank, Non-Banking Financial Company (NBFC))

Market trend:

Growing demand for personal loan apps for quick cash needs

Market leader:

More and more consumers are taking out personal loans for their purchases

Growing awareness of the benefits of personal loans


Issue with prepayment penalties and the potential for fraud


Growing demand from emerging countries such as China, India, Brazil

Regions Included: North America, Europe, Asia Pacific, Oceania, South America, Middle East, and Africa

Distribution at country level: USA, Canada, Mexico, Brazil, Argentina, Columbia, Chile, South Africa, Nigeria, Tunisia, Morocco, Germany, Great Britain (UK), Netherlands, Spain, Italy, Belgium, Austria, Turkey, Russia, France, Poland , Israel, United Arab Emirates, Qatar, Saudi Arabia, China, Japan, Taiwan, South Korea, Singapore, India, Australia and New Zealand, etc.

Do you have any questions about the global Financial Services Market report? [email protected]

Strategic Points Covered In The Global Personal Loans Market Table Of Contents:

Chapter 1: Introduction, Product of the Market Drivers Objective of the study and scope of research of the Personal Loans Market

Chapter 2: Exclusive Summary – the basic information of the Personal Loan Market.

Chapter 3: Presentation of Market Dynamics – Drivers, Trends, and Challenges of Personal Loans

Chapter 4: Presentation of the market factor analysis for personal loans Porter’s Five Forces, supply / value chain, PESTEL analysis, market entropy, patent / trademark analysis.

Chapter 5: Displaying Market Size by Type, End-User and Region 2015-2020

Chapter 6: Assessment of the Leading Manufacturers of the Personal Loans Market composed of its Competitive Landscape, Peer Group Analysis, BCG Matrix, and Company Profile

Chapter 7: Assessment of the Market by Segments, Countries and Manufacturers with Revenue Share and Revenue by Key Countries (2021-2026).

Chapters 8 & 9: Viewing the Appendix, Methodology, and Data Source

Finally, the personal loan market is a valuable guide for individuals and businesses in making decision-making.

Read the detailed index of the full research study at @

Contact us:

Craig Francis (PR and Marketing Manager)
AMA Research & Media LLP
Unit # 429, Parsonage Road Edison, NJ
New Jersey USA – 08837
Phone: +1 (206) 317 1218
[email protected]

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IIFL uses an A / C aggregator for SMB loans

Mumbai: IIFL Finance, backed by Fairfax, has announced that it will be among the first to introduce digital lending on an account aggregator basis that can reach millions of new customers. IIFL Finance had Rs 43,160 billion in loan assets under management as of June 30, 2021, with around 93% of the book being in retail stores including small-ticket loans. The account aggregator platform designed by RBI enables customers to give the lender software access to their bank details. This makes it possible to extend loans to people with no creditworthiness.
IIFL Finance aims to use the Account Aggregator to better draw small businesses. The private lender focuses on digital underwriting of unsecured loans up to 10 lakh for MSMEs. Customers can take out instant loans within a few minutes using the MyMoney app managed by IIFL Finance. IIFL Finance Chairman Nirmal Jain said, “We believe the Account Aggregator will be a determining factor in the days ahead. Many borrowers are denied access to credit due to the unavailability of financial data. Creating an account aggregator will solve that. ”
He added that currently around 8% of IIFL platform users can provide digital financial data to process the application. “We believe the Account Aggregator will help us fill the data gap and enable 70-80% of businesses to apply for digital loans,” he added.

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Enniscorthy Credit Union takes a farmer-friendly approach to credit

The ENNISCORTHY Credit Union has teamed up with the credit cooperative’s Cultivate lending platform to form a new initiative specifically aimed at those in the agricultural sector.

It’s welcome news for farmers, farming organizations and agricultural businesses in the local community, especially with Ulster Bank’s exit from the Irish market and the closure of many of the Bank of Ireland’s rural branches.

Enniscorthy Credit Union covers a large rural area and has four offices in County Wexford.

The main office is in the town of Enniscorthy, which is also home to Co Wexford Marts and many of the county’s agricultural businesses, and the credit union also has field offices in Ballymurn, Taghmon and Murrintown.

A spokesman for Enniscorthy Credit Union said the Cultivate loan is expected to provide funding opportunities for many local farmers.

Cultivate has unsecured loans of up to € 50,000 available and farmers can borrow for a variety of agricultural purposes, including warehousing, farm machinery, cash flow and general agricultural investments.

The term can be up to seven years at an interest rate of 6.55 percent (6.75 percent APR) with repayment plans that are tailored to the farmers’ cash flow.

In August, Cultivate published an analysis for the first six months of 2021 and the report highlighted how more and more farmers are using Cultivate for their farm finance.

The new loan offering was officially launched at Johnstown Castle, home of the Irish Agricultural Museum, with Wexford IFA Chairman Jer O’Mahony.

Several local IFA representatives were present as well as representatives from the Enniscorthy Credit Union.

Commenting on the new Cultivate loan offering, Liz Cullen, CEO of Enniscorthy Credit Union, said, “We are excited to offer this new agricultural product that provides medium-term funding for our agricultural members.”

“Cultivate is our newest loan product that enables us to help our farming members future-proof their business by providing quick and easy access to finance,” said Ms. Cullen.

She stressed that Cultivate Farmer Friendly Finance is specifically geared towards the growing needs of the credit union’s agricultural members and is offered at a very competitive price.

All agricultural credit union members interested in learning more about the Cultivate offering should visit the Enniscorthy Credit Union website or contact Orla or Lena at 053 9233835.

Orla Doyle, Head of Lending at Enniscorthy Credit Union, said the organization is pleased to offer the new option to the farming community in the shared bond area.

“We can be reached six days a week in person, by phone, or online,” said Ms. Doyle.

“We can do business in the way that suits you best,” she added.

She said that decisions at the local level are made by lenders with fast turnaround times.

“Our friendly, professional, local and down-to-earth people are here to assist farmers with their funding needs,” said Mrs. Doyle.

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Global Consumer Financing Markets (Secured Consumer Financing, Unsecured Consumer Financing), 2016-2020 & 2021-2026 –

DUBLIN – (BUSINESS WIRE)–The Global Consumer Financing Market, By Type (Secured Consumer Financing, Unsecured Consumer Financing), By Secured Consumer Financing Product Type, By Unsecured Consumer Financing Product Type, By Region, Competition, Forecast, And Opportunities, 2026 “ Report was added to to offer.

The global consumer finance market is forecast to grow by a CAGR of 5% to over $ 1,306.10 billion by 2026

Consumer finance refers to the decisions households make over time about saving, borrowing, and investing. The global consumer finance market is growing steadily due to increasing disposable income and high economic growth. New entrants are rapidly expanding into this market, including large peer-to-peer lenders and all-digital players.

The consumer finance market is driven by the fact that consumer lives and financial situations are changing rapidly. No wonder, the consumer finance industry is one of the most synchronized and well-developed sectors in the world, among other sectors. Due to the continuous population growth and economic development, the production of consumer finance has experienced continuous growth.

In addition, the ready availability of various loans such as home loans, auto loans, and education loans from various public and private banks or financial services providers, as well as the rapid processing of loan applications, are expected to fuel the global consumer finance market growth.

The global consumer finance market can be divided into type, secured consumer finance product type, unsecured consumer finance product type, regions, and company. The global consumer finance market is divided into two broad segments: secured consumer finance and unsecured consumer finance.

Among these, the secured consumer finance market is the dominant segment compared to the unsecured consumer finance market, which accounted for more than 65% of the global consumer finance market in 2020. Due to the driving factors such as lower interest rates, higher credit limits, longer repayment periods, lower financial risk for the lender, etc.

The global consumer secured finance market has been further divided into home loans, auto loans, mortgage loans, and others. In 2020, home loans made up the bulk of the market share in the global consumer finance market due to factors such as continuously increasing demand, real estate affordability, affordable interest rates, etc. However, a car loan is expected to increase over the forecast period.

Based on the type of unsecured consumer finance product, the global consumer finance market is divided into permanent consumer finance, personal loans, credit cards, home finance loans, education loans, and others. The global consumer finance industry is experiencing profitable growth as a result of lifestyle changes and increased spending on consumer durables.

Better availability of credit information, continued subsidies from manufacturers, and increasing penetration of consumer durables are some of the factors that have supported the growth of consumer durable finance in the global consumer finance market.

The aim of the study:

  • To analyze the historical growth of the market size of the global consumer finance market from 2016 to 2020.

  • Estimation and forecast of the market size of the global consumer finance market from 2021 to 2026, and the growth rate to 2026.

  • Classification and forecast of the global consumer finance market by type, by type of secured consumer finance product, by type of unsecured consumer finance product, by region, and by company.

  • To identify a dominant region or segment in the global consumer finance market.

  • Identification of drivers and challenges for the global consumer finance market.

  • Studying competitive developments such as expansions, new product launches, mergers and acquisitions, etc. in the global consumer finance market.

  • Identify and analyze the profile of leading players in the global consumer finance market.

  • Identify the key sustainable strategies being followed by market participants in the global Consumer Finance Market.

Competitive landscape

The companies develop advanced technologies and introduce new services to stay competitive in the market. Other competitive strategies include mergers and acquisitions and new service developments.

Some of the leading players in the global consumer finance market are

  • JPMorgan Chase & Co.

  • Citigroup, Inc.

  • Wells Fargo & Company

  • BNP Paribas

  • American Express company

  • HSBC Holdings plc

  • TD Bank, NA

  • Berkshire Hathaway Inc.

  • Bank of America Corporation

  • Industrial and Commercial Bank of China

Report scope:

Years considered for this report:

  • Historic years: 2016-2019

  • Base year: 2020

  • Estimated year: 2021

  • Forecast period: 2022-2026

Global Consumer Finance Market By Type:

  • Secured consumer finance

  • Unsecured consumer finance

  • Global Secured Consumer Financing Market Size by Product Type:

  • Home loan

  • Car loan

  • Mortgage loan

  • Other

Global Unsecured Consumer Financing Market Size, by Product Type:

  • Permanent financing for consumers

  • Private loan

  • Credit card

  • Home improvement loans

  • Education loan

  • Other

Global Consumer Finance Market By Region:

  • North America

  • United States of America

  • Canada

  • Mexico

  • Europe

  • Germany

  • France

  • United Kingdom

  • Italy

  • Spain

  • Asia Pacific

  • China

  • India

  • Japan

  • South Korea

  • Australia

  • South America

  • Brazil

  • Argentina

  • Colombia

  • Middle East and Africa

  • Saudi Arabia

  • United Arab Emirates

  • South Africa

  • Kuwait

For more information on this report, see

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SC Cotton Gin Bankruptcy Is Inundated With Undocumented Loans, Unanswered Questions | Companies

Federal bankruptcy officials are debating whether to hire an investigator or a forensic accountant to find out what happened to nearly $ 6.5 million that disappeared from the bank accounts of the historic Rickenbaker Gin.

The gin, located in tiny Davis Station in Clarendon County, owes the farmers the money for the harvest it sold on their behalf. The 76-year-old company never passed the money on to producers, prompting the SC Department of Agriculture to fund payments through two special crop failure protection programs.

Now the state authorities want their money back.

“We need to be accountable for what happened,” said Rick Mendoza, a lawyer representing the department, during an October 1st hearing in Charleston. “Where did the money go?”

The State Law Enforcement Department is asking the same question. It has launched a criminal investigation into the gin’s financial operations.

Elisabeth Gasparini, attorney for the US trustees office in Columbia, tried to get some answers during a 3½ hour meeting of Rickenbaker Gin’s creditors.

During the interview, owner Burt Rickenbaker blamed floods, hurricanes, government programs that allegedly pay farmers not to grow crops, and his former accountant for the company’s financial collapse.

In documents filed on Oct. 1, Gin’s listed fortune was nearly $ 2.1 million, though Rickenbaker said much of the value was his own estimate and that a formal appraisal was still ongoing . The debt is just over $ 8.1 million, including the debt to the Department of Agriculture.

That debt primarily arose in 2019 and 2020, although the gin posted nearly $ 35 million in income for the period.

Gasparini focused some of her questions on numerous transactions between Rickenbaker and Santee Leasing Inc. owned by James “JC” Black of nearby Manning, whom Rickenbaker called a friend he has known since his youth.

Rickenbaker said he often borrowed money from Black or Santee Leasing to improve the gin’s cash flow. Rickenbaker said Black would write him a check on loan, and Rickenbaker would then give Black a check for the same amount plus 2 percent interest, due in 10 days.

Other than the checks that were deposited in each other’s accounts, there was no record of the loan, such as the purpose of the loan.

Historic SC cotton gin, once celebrated, now the focus of criminal investigations

Among the debts listed in the gin’s financial statements is a $ 650,000 unsecured loan from Santee Leasing. Rickenbaker said Black asked him to sign a promissory note for that amount earlier this year when the gin was struggling financially. In another case, Black placed a mortgage on Rickenbaker’s property in February 2020 to secure a $ 200,000 loan. Rickenbaker said he made no payments on this loan, which is not listed on the gin’s bankruptcy filings.

Black declined to answer questions about the loans when he was contacted on October 1.

Gasparini also questioned Rickenbaker about a $ 80,000 loan his wife made for the gin last December. He said the money was for operating expenses, although there was no documentation for the loan, which came from his wife’s personal income. Rickenbaker said the gin returned the money, including the $ 2,000 interest, a few months later.

During the interview, Rickenbaker – who received an annual salary of $ 115,000 – described a business practice in which he deposited his own money into the company’s accounts when operating funds ran low and later repaid himself by withdrawing money. There was no documentation except for the bank transactions for the payouts, which amounted to around 100,000 US dollars per year in 2019 and 2020.

“I would put it in and pull it out again when I needed it,” Rickenbaker said during the hearing.

Hawk Law founder says the SC's legal watchdog group is trying to prune its wings

Next, it will be decided whether a court-appointed auditor or a Rickenbaker-paid forensic accountant should be hired to further investigate the finances. Lawyers from all sides said on October 1 that they were unsure how far back such an investigation should be and how detailed it should be. You also don’t want to spend more money than necessary on such an investigation as it would reduce the payout to creditors.

Eighteen cotton farmers and 28 grain producers were paid through the Department of Agriculture’s harvest programs. The funds that were used to offset them are financed by farmers ‘and camp assessments, so that no taxpayers’ money was involved.

The litigation and criminal investigation is a far cry from the history of gin as a second generation company founded by Rickenbaker’s father on his return to South Carolina after World War II. The SC Legislature recognized the company in a 2003 resolution for its “Commitment to the Cotton Industry in Clarendon County”.

Burt Rickenbaker – a past president of the Southeastern Cotton Ginners Association – was named Ginner of the Year by this group in 2019.

Our bi-weekly newsletter contains all the business stories that shape Charleston and South Carolina. Get ahead with us – it’s free.

Reach David Wren at 843-937-5550 or on Twitter at @David_Wren_

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Eatery Business

ICICI Bank Launches ‘Festive Bonanza’; announces home and car loan offers

The ICICI Bank announced on Friday the introduction of a festive bonanza, which offers private and business customers attractive advantages in various banking products and services. The offers are available from October 1, 2021 on various dates in the coming Christmas season.

The ICICI Bank offers in the loan suite:

Home Loans: The bank’s customers benefit from an attractive interest rate (repo rate linked) from 6.70% and a processing fee 1,100 for new home loans and balance transfer of home loans from other banks.

Car Loans: The ICICI Bank offers EMIs from 799 per 1 lakh. Customers can also take out loans for a term of up to 8 years. Customers receive attractive interest rates for the used car loan from 10.5% and can also use a top-up loan for their existing car loan

Two-wheeler loans: EMI as low as 29 per 1,000 for a term of 48 months. Processing fee of Only 1,499

Instant loans for private individuals: The interest rate from 10.25% and processing fee of 1999

Corporate Loan – Insta OD: Use unsecured OD up to 50 Lakh and non-ICCICI bank customers can avail up to 15 lakh. Pay interest on the amount drawn with no foreclosure costs

ICICI Bank customers can take advantage of attractive discounts in all categories with debit / credit cards, internet banking and cardless EMI:

Offers on e-commerce platforms: 10% discount on online shopping at major e-commerce players such as Flipkart, Amazon, Myntra, Tata Cliq and Paytm Mall

Travel: Up to 25% off leading travel websites like MakeMyTrip, Yatra, EaseMyTrip and Paytm Flights among others

Mobile phones: Receive attractive discount and cashback offers on phones from Samsung, MI, OnePlus, Realme, Oppo and Vivo

Electronics & Devices: Up to 10% cashback for leading electronics brands such as LG, Bosch, Carrier, Dell, Eureka Forbes, Godrej Appliances, Haier, Panasonic, Sony, Siemens, Voltas, Whirlpool and many more. Customers can also take advantage of attractive discounts at Reliance Digital, Croma, Vijay Sales, Pai International, Kohinoor Electronics, Sargam Electronics, Hariom Electronics, Electronic Paradise, Arcee Electronics, Great Eastern Trading, Sales India, Big C, LOT Mobiles and B NEW Mobiles

Introducing Mr. Anup Bagchi, Executive Director of ICICI Bank, said: “To support this demand and general economic growth over the upcoming Christmas season, we are offering our customers a comprehensive range of offers, discounts and cashbacks – across several leading brands and e- Commerce platforms. The offers apply to the use of debit / credit cards from ICICI Bank, Internet banking and Cardless EMI “.

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Eatery Business

BNPL vs. Credit Cards vs. Personal Loans: Which One Is Right For You?

Credit cards score points for universal acceptance over BNPL, as the latter are still limited to partner merchants, although service providers regularly add hundreds of partners.

Consumers, especially Millennials and Generation Z, are now looking for simplified microcredit solutions to better manage their recurring and occasional purchases that are easy to apply for and seamless to avail. All of these factors have led to the massive popularization of Buy Now Pay Later or BNPL services in India in recent years.

With over 30 focused startups, some e-commerce giants, and even leading banks and NBFCs joining the bandwagon now, BNPL services in India are making rapid strides in customer onboarding, trading partnerships and attracting investment.

According to Bankbazaar, BNPL services have been part of the global digital lending ecosystem for over 15 years. But the pandemic has been a stimulus for its massive popularity in the recent past coupled with the surge in e-commerce, the deepening of mobile internet penetration, and the increasing redundancy of cash transactions, particularly in countries like China, the US, Australia, and India.

What is BNPL?

A BNPL service allows customers to make eligible purchases that can be split into simple installments or paid back at a later date (within the repayment cycle) with zero to low interest fees. BNPL service providers offer short-term microcredit to customers for specific purchases, typically starting from Rs 2,000 and up to Rs 1 lakh in credit limits, with repayment cycles ranging from 14 days to 30 days (up to 90 days, in some cases) depending of the service provider’s terms and conditions.

However, late payments (and in some cases interest fees) could be charged for repayments beyond the due dates, while BNPL providers may report late payments to credit bureaus that could affect the creditworthiness of these users.

The BNPL service providers often use new-age mechanisms to assess the creditworthiness of customers and the entire process of customer onboarding and credit limit sanction is usually completed digitally within minutes with minimal documentation. Some players also offer pre-approved BNPL credit limits to select customers, according to the Bankbazaar study.

BNPLs can currently be enjoyed on a growing number of e-commerce, food ordering, ridesharing, travel booking, online grocery and service websites, and even on edu-tech portals among hundreds of other merchant platforms. Transactions can be carried out seamlessly during checkout in a safe and secure manner with a tap of a finger without the need to enter card details or OTPs.

Some BNPL service providers also offer their customers additional incentives in the form of additional discounts or cashback for the use of their facilities, timely repayments or for certain transactions. These consumer buying instant fund offering platforms generally make money through merchant commissions and late fees, not interest fees.

How does BNPL compare to personal loans and credit cards?


Credit cards score points for universal acceptance over BNPL, as the latter are still limited to partner merchants, although service providers regularly add hundreds of partners. Credit cards also offer perks and privileges that help users save more and achieve higher living standards through their transactions. Cards might offer higher spending limits, although they might be more difficult to come by in comparison due to the stricter drawing norms. BNPLs have no annual, processing, or renewal fees like cards sometimes do. The key differentiator, however, is the interest fees, which are typically not charged for BNPL services – users have to pay a non-cumulative late payment fee unlike credit cards, although some cards now also offer interest-free EMIs.


Personal loans are large volume, universal, unsecured funding facilities with credit limits much higher than BNPL services. In contrast to BNPL, however, there are higher fees. Another key differentiator is Revolving Loans – BNPLs offer this, while Personal Loans do not, as they are one-off loans. In addition, a customer’s age, income, credit history, occupation, etc. are checked by the lenders to determine the creditworthiness, although the application process and loan disbursement for pre-approved loans is fast. BNPLs, on the other hand, often use new age mechanisms to determine the creditworthiness of the borrower, which usually only takes a few minutes.


Credit cards could offer a wider range of benefits, a higher credit limit, and universal acceptance, but with cumulative interest charges for late payments. BNPL services are smaller but simpler credit facilities for consumer purchases at partner retailers that often result in EMIs that do not incur interest charges, but in most cases only incur a one-time fee. They can also be easier to register compared to credit cards that have not been pre-approved. These factors make them very well suited for users looking for short term micro credit facilities, especially those that are not credit card friendly.

Personal loans are intended for large funding needs, often during an emergency cash crunch, and are not recommended for smaller discretionary purchases due to the interest burden associated with them.

BNPLs, credit cards, and personal loans are all different types of credit, but they all require very disciplined use. Users must not become over-indebted and minimize their use to finance lifestyle and consumption. You need to read the fine print carefully, understand fees, and make sure your fees are always paid on time, says Bankbazaar.

Credit cards and personal loans charge interest on late payments. BNPLs impose a penalty. Reckless use and late payments with any of these facilities can jeopardize the user’s creditworthiness and reduce their chances of getting the best deals if they apply for other loans in the future.

As for BNPLs, they are pioneering in providing seamless microcredit solutions to millions of customers. As with any other loan product, however, knowledgeable usage and the highest level of financial discipline are key to maximizing the mortgage lending value.

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