Offset Loan

Offset Loan

A type of loan in which the borrower maintains a savings account with the lender so that the account balance is netted against the loan outstanding for purpose of interest calculation. The interest rate on Offset loans is typically higher than the ones without this feature.
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The bank said that its profit had dropped in the latest quarter, as merger-related costs offset loan and deposit growth.
8m/EUR28m) due to higher provisions to offset loan exposure to entities within debt-saddled conglomerate Dubai Holding Group.
Your existing lender may offer an offset loan, or consider First Direct (0800 482448), which has recently been offering this scheme at 2.
Or, if you can't afford to say goodbye to your savings, see how much you could gain by transferring to an offset loan.
A family offset loan, where your parents' saving are set against your debt, will also allow you to borrow more at a reduced cost
The primary cause of the year-to-date loss was the loan loss provision recorded during the year to offset loan charge-offs as the recession adversely affected several loans.
The improvement was largely helped by smaller provisions the bank set aside to offset loan defaults and a 26% rise in non-interest income that compensated for the subdued loan demand.
That means tens of thousands would suddenly be better off with an offset loan -if only they knew what they actually are.
A borrower with a pounds 100,000 offset loan from Woolwich at 3.
Given the existing capital markets and QVC's operational issues, Liberty's portfolio of cash and marketable securities could become ever more important over the intermediate term to handle these maturities and offset loan reductions, tight credit markets, and higher interest expense.
Banco do Brasil partly offset loan default problems affecting the entire banking sector by tight control on costs and risk.