Constraints put on P.O.S.B. lending

Press, 13 June 1984, Page 3

Constraints put on P.O.S.B. lending

PA Wellington Further constraints in Post Office Savings Bank lending were announced yesterday by the Post-master-General, Mr Talbot. The new lending limits will be as follows: ® Personal loans will be limited to $5OO for those that are unsecured or partly secured, and $lOOO for secured personal loans. The existing limits are $l5OO for unsecured loans and those that are secured by nonPost Office Savings Bank securities; $3OOO when secured by real estate and no limit when bank securities are used.

© Housing loans for second and subsequent

mortgages will be limited to $5OOO as compared with $7OOO at present. © Housing loans to refinance existing mortgages are being temporarily discontinued.

© New applications for Bankcard and Mastercard credit cards will only be accepted from customers who have a Post Office Savings Bank account with a reasonable balance at credit. Mr Talbot said the constraints were necessary to ensure that Post Office lending stayed within the maximum growth limit of 1 per cent a month required by the Government, “Because of the low interest rates charged by the

Post Office Savings Bank there is a considerable demand for its loan money and it is essential that in keeping with the Government’s over-all economic strategies, lending does not go beyond the 1 per cent limit,” he said.

“There is no change to the level of first mortgages available to holders of Post Office Savings Bank home ownership accounts,” Mr Talbot said.

The new limits will apply to all loan applications lodged with the Post Office after June 12. Mr Talbot said any applications lodged on or before June 12 would be considered under the old criteria.