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New credit plan by Gen. Finance

PA Wellington General Finance has unveiled a new investmentloan plan likely to heat up competition between building societies, finance companies and trading banks for small investors’ deposit dollars. Called “Continuous Credit Plan,” the offering involves what the company calls a special unsecured revolving loan facility with an investment option. Under the scheme, an investor may decide to pay in each month a regular sum on which he or she will receive daily interest and in return obtain a right to an

unsecured loan up to 25 times the amount of the monthly investment. Unless a special individual arrangement is made, the upper loan limit is $10,900 and the minimum loan that can be taken out is $5OO. The tentative interest rate to be paid on deposits is 8.5 per cent and the lending interest rate is 18 per cent, but the deposit rate could go up to about 9.5 per cent. The minimum monthly deposit is $3O and the maximum $4OO, giving credit limits of $750 and $lO,OOO respectively.

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Permanent link to this item

https://paperspast.natlib.govt.nz/newspapers/CHP19830905.2.116.7

Bibliographic details

Press, 5 September 1983, Page 21

Word Count
175

New credit plan by Gen. Finance Press, 5 September 1983, Page 21

New credit plan by Gen. Finance Press, 5 September 1983, Page 21