Sunday, March 15, 2009

Easy money?

I don't know about you but I have had at least two letters from Barclays Bank offering me a "guaranteed" £11,000 personal loan in the last few weeks. (A few years back I had these kind of offers at least twice week from a whole range of financial institutions and I still get letters from good old Ocean Finance!)

But now, as someone who has been able to retire early albeit with a much reduced income and no interest in (or need of a hefty loan, I hope!) I wonder why this bank wants to offer me such a large loan without understanding my personal circumstances. OK, I am simply a joint account holder with my wife because that entitles us to various things such as travel and car breakdown insurance. But I put none of my money into Barclays.

It reminds me of applying on-line to Northern Rock for a personal loan about five years ago and finding they were prepared to lend me an unsecured £25,000 without any details of my personal circumstances. (I didn't touch it - even with Gordon Brown's barge pole!)

But the serious question here is why are the banks prepared to lend me money but find it so hard to fund small businesses when they need it?

Perhaps the G20 meeting will explain?


Oldrightie said...

As you know, Ted, I expect it to make nice wallpaper soon. No more.

Sue said...

Perhaps they're hoping you have a fully paid up mortgage they can secure it against!

Ted Foan said...

Sue - you are probably right but I don't want or need a loan. Small businesses do but they are struggling to get the banks to support them. In fact the banks are calling in existing overdrafts for some of them. Madness!