Private Lending: the Six Steps to a Private Lending Program for Real Estate Investors

Posted on September 26, 2010

Private Lending: the Six Steps to a Private Lending Program for Real Estate Investors

Wow, has the real estate market changed in 2008! Real estate investors have been shut out of traditional mortgage money unless you have a 9000 credit score and a 50 year work history without missing one day of work (ok enough of the weak humor but you get the idea). Even hard money loans are HARD to get as they have all gone out business. But just as the mortgage market is shunning the investor – we are starting to see signs that the reals estate marketing is starting to bottom and home prices have even gone up in some markets. So how do you take advantage of this buying opportunity if you can not get mortgage money from traditional sources? Private lending is the answer. You can start borrowing money from private lenders to fund your real estate investments. Raising private money allows you to take advantage of the low prices without ever using any of your own cash or personal credit.

There are several significant benefits and advantages of private money lending compared to mortgage money or hard money lending. First, you can begin buying more houses for ?all cash? offers and drive significant discounts from sellers who are highly motivate to get cash versus waiting and hoping another buyer will get a mortgage approval.

Second, very simple paperwork with a typical private lender transaction only requires 3 or 4 documents with less than 20 pages. Third, the real estate investor controls the terms and conditions under which you will borrow money and the lender will lend. You tell the lenders what rates of interest you will pay, how long the term is and all the other conditions are set by you not a bank or hard money lender. Finally, you can turn many non-deals with no equity into super profitable deals with substantial equity by paying off existing debt at a discount… using private money. 6 Steps to develop a private money program for real estate investors:

1) Develop your private lending program and the terms and conditions under which you will borrow money and repay your lenders

2) Build your info/credibility kit to establish yourself as investing expert

3) Create a marketing plan with 5 to 10 different marketing techniques to attract potential private lenders

4) Create your group or one-on-one presentation

5) Schedule group or one-on-one meetings and follow-up with potential lenders

6) Present and close deals with your potential lenders Given the new market realities, private lending may be the only option if you want to buy and own investments and take advantage of the low prices.

I invite you to learn more about Private Mortgage Money Lending and get my new FREE 20-page ebook titled “Discover the Secrets of How to Fund Your Real Estate Deals with Private Lenders!” by clicking here http://realestatewealthtoday.com/FREE-eBook.html . Mike Lautensack is a full-time real estate entrepreneur in Philadelphia, PA and creator of the Private Lending Presentation Kit. This powerful done-for-you kit is loaded with tools and techniques to attract and develop a consistent stream of private investors into your real estate business. To learn more about this kit and receive your FREE Real Estate Wealth Newsletter go to Private Lending Presentation Kit.

Alan Grayson Grills Federal Reserve Chairman Ben Bernanke on Foreign Lending Date: 07/21/09

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Trade in Peer to Peer Loans With Lending Club

Posted on September 24, 2010

Trade in Peer to Peer Loans With Lending Club

If you were thinking of investing in peer to peer loans and were scared away by the commitments, Lending Club’s trading platform has just added some liquidity.

Investors in peer to peer loans like it for several reasons. First, they could be helping someone. The borrower might need funding to start a business or pay for school. Second is the often the nice return investors saw on their money, with many loans earning above 10%.

Certain investors liked the idea, but stayed away for a couple different reasons. One major reason is once you entered into a peer to peer loan you were locked in for the duration of the loan. With most loans being three years, peer to peer loans were not considered a liquid asset. If times changed and you needed access to money, your peer to peer loan was not the place to look.

Today, this might be different and has to do with the major changes to the industry in the last year. The SEC has stepped in and stated that issuing peer to peer loans without proper registration is illegal. This effectively shut down the industry and has done so for some time. Banks that want to open back up have to fill the appropriate paper work with the SEC before issuing any more peer to peer loans. For those banks that do register, their peer to peer loans become securities and are tradable.

Today, Lending Club is one of the first to complete the registration and back open issuing loans. They have also added a trading section to their website. There, visitors will find it is being managed by Folio a member of Financial Industry Regulatory Authority (FINRA). This is a huge securities regulation firm that clients include the NASDAQ and ASE.

This addition has solved the problem of liquidity. If you want to get out of a loan because you need the money, you can attempt to sell it on Lending Club’s trading platform. Furthermore, if you are looking to invest in a peer to peer loan, but only for a year or so, you can buy a loan listed on this exchange. For traders, Lending Club provides the information about the loan as well as the current credit standing of the borrower. This information protects traders, allowing them to judge the overall risk before buying a particular note.

This addition not only solves the liquidity issue, but adds some validity to the industry. The SEC has got involved and setup proper regulations for peer to peer lending sites. No longer is it seen as unregulated and lax in procedures. Also, this opens the door for a larger exchange of peer to peer loans. The possibility of complete exchange, where investors are able to trade between several different lending sites and peer to peer loans is now very plausible

If you are looking for more information about peer to peer loans, you need to visit Kyle’s website. There you will find even more excellent information about peer to peer lending

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Global One Lending Hawaii

Posted on September 14, 2010

Global One Lending Hawaii

Global One Lending

Global One Lending LLC announced the opening of its Honolulu office, its first Hawaii location.

The Sacramento-based company has hired longtime Honolulu businessman Charles Degala as branch manager.

Degala, who was formerly a loan manager at Summit Lending of Hawaii, will oversee about 50 full- and part-time loan officers.

Global One Lending LLC – Hawaii will have an office at 1132 Bishop St., Suite 200.

Founded in 2001, Global One Lending has more than 4,000 loan officers in California. Its home branch is in Sacramento, Calif.

It operates numerous branch locations throughout California, Virginia and in Las Vegas. Future expansion is planned for all 50 states.

http://globalonelending.wordpress.com/

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Asset Based Lending as a Financial Tool

Posted on September 12, 2010

Asset Based Lending as a Financial Tool

Many Chief Financial Officers and other finance executives view asset based loans as a financing outlet of last resort. While that may sometimes be the case, such a view is a one-dimensional perspective. But as companies confront a tight credit market coupled with lower than expected results, many CFO’s are viewing asset based lending as a viable option in the financing tool kit. Even successful companies with strong banking relationships can quickly fall out of favor with lenders and lose access to unsecured financing, especially if they’ve shown recent losses.


A few bad quarterly results doesn’t necessarily mean that a company is in bad shape. But stringent bank underwriting parameters can cause existing loans to be called and prevent the firm from qualifying for new financing. A company facing such a scenario can use asset based lending (ABL) arrangements as bridge loans to pay off banks and provide liquidity until bank financing is achievable.


What is asset based lending?


An asset-based loan is secured by a company’s accounts receivable, inventory, equipment, and/or real estate, whereby the lender takes a first priority security interest in those assets financed. Asset-based loans are an alternative to traditional bank lending because they serve borrowers with risk characteristics typically outside a bank’s comfort level. These assets typically have an easily determined value. The financing can take the form of loans to revolving credit lines to equipment leases and can range from 0,000 to billion, depending on needs and circumstances.


How can ABL be a beneficial financing option?


Acquisitions

To grow a business, a company may look to acquire a strategic partner or even a competitor. Asset-based financing is often an efficient means to obtain funding for business acquisitions.


Turnaround Financing

Turnaround financing is often used by under-performing businesses that are not achieving their full potential. In some cases, it is used for businesses that are either insolvent or on their way to becoming insolvent. Asset-based lenders are accustomed to the bankruptcy process and asset-based financing is ideal for turnarounds because of its flexibility.


Capital Expenditures

Capital expenditure is the money spent to acquire and/or upgrade physical assets such as buildings and machinery. Capital expenditure is also commonly referred to as capital spending or capital expense.


Debtor-in-Possession (DIP) Financing

Debtor-in-possession (DIP) refers to a company that has filed for protection under Chapter XI of the Federal Bankruptcy Code and has been permitted by the bankruptcy court to continue its operations to effect a formal reorganization. A DIP company can still obtain loans–but only with bankruptcy court approval. DIP financing, which is new debt obtained by a firm during the Chapter XI bankruptcy process, allows the company to continue to operate during a reorganization process. Asset-based lenders also provide exit financing or confirmation financing to companies coming out of bankruptcy.


Growth

Typically, as a company grows so does its need for financing. Also, as a company’s collateral grows, its assets can strengthen its ability to borrow. An experienced and creative asset-based lender can assemble a credit facility that can scale to grow with a company.


Recapitalization

Recapitalization is the process of fundamentally revising a company’s capital structure. A company might recapitalize due to bankruptcy or replacing debt securities with equity in order to reduce the company’s ongoing interest obligation. A leveraged recapitalization typically achieves just the opposite–by taking on a material amount of debt, the company increases its ongoing interest obligation but is able to pay its shareholders a special dividend.


Refinancing/Restructuring

When a company enters or exits a growth stage, refinancing or restructured financing may be key to creating a capital structure that better meets the needs of the company. This type of financing is often used for market expansion, completing an acquisition, restructuring operations, or following a successful corporate turnaround.


Buyout

A buyout is the purchase of a controlling percentage of a company’s stock. In a leveraged buyout (LBO), the acquiring company uses the minimum amount of equity to purchase the target company. The target company’s assets are used as collateral for debt, and its cash flow is used to retire debt accrued by the buyer to acquire the company. A management buyout (MBO) is an LBO led by the existing management of a company.


What are the advantages to ABL?


* Tends to feature fewer covenants than other types of financing and those it does include tend to be more flexible. Cash flow loans, by contrast, often have four or five covenants including total leverage, fixed charge coverage, and minimum net worth.


* If a company is growing, the receivables and inventory it uses to secure the asset based loan is likely growing as well. Thus, the company has a greater collateral base and can borrow funds to fuel its growth.


* ABL instills discipline. Since the loans are based upon accounts receivable and inventory, the company is motivated to improve collections and complete the production cycle in a timely manner.


* As mentioned earlier, ABL imposes less stringent covenants compared to cash flow loans. These type of loans also provide better security to the lenders, which in turn allows them to grant more time to the borrowers to turn their company around in difficult times.


What are the disadvantages of ABL?


* Since the level of funding is contingent upon the asset values on the balance sheet, there may not be sufficient liquidity. Only asset rich companies would likely benefit, while many service companies would not.


* Such a requirement can be difficult for the company.


* Asset based lending tends to be more expensive than other types of financing, often three to five percentage points above traditional bank financing.


* ABL runs counter to the thinking of a lot of CFOs who believe it is dangerous to tie short term assets to long term financing.


Although asset based lending is now a common financing tool, it is not for everyone. It makes sense to explore all types of financing before deciding if asset based lending is the right choice. The CFO must review the state of the company’s credit, analyze the firm’s asset structure, and its current debt load. Asset based lending can provide the liquidity needed for the company to grow until less expensive bank financing is available.

Kent Harlan has been a CPA since 1984 and is the owner of Ozarks Capital Funding, a firm offering financing in the areas of accounts receivable factoring, equipment leasing, and financing for healthcare providers. http://ocflink.comkenth@ocflink.com

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Improve Your Cash Flow through Asset Based Lending

Posted on September 8, 2010

Improve Your Cash Flow through Asset Based Lending

If you are facing cash flow problems, due to long credit period offered to your clients or due to money getting stuck in catering to large purchase orders while running your company, despite having healthy sales orders and profits, then asset based lenders could come to your rescue.


As banks offer only fixed loans against collaterals, you could have a tough time in availing such a loan. Besides, inter banking crunch has now forced banks to become very strict in their lending terms. Compared to that, asset based lending firms offer loans, not only against your fixed assets, such as your commercial buildings, but also against your receivables and also against your purchase orders or letters of credit, in case you have overseas customers. In other words, you can avail of a loan against your pending invoices and this method will provide you with instant cash, which can then be utilized to make your salary payments or used to clear off any other expenses.


You can also make bulk purchases and avail of quantity discounts, which otherwise would not have been possible. Asset based lenders also approve loans on a faster basis as compared to traditional banks and this could mean that you get your hands on the cash, when you need it the most. Although the rate of interest in such loans is higher than what banks offer, the range of services offered by these asset based lenders is also much more and the time taken to approve a loan by an asset based company is quite less as compared to a bank.


When you apply for a loan from an asset based lending company, they will scrutinize your credit record and also check out whether your assets are liquid. Then, depending on the credit period, which you have offered to your clients, the lending company can quote the fees, which will be applicable to you. You can expect up to around 75% of your invoices and around 30 to 80% of your inventory value to get approved as your loan amount. This means that you now have enough cash to put your plans such as any expansion or even clearing old business debts into action.


You should however, calculate the rate of interest of these loans against the benefits offered, before making any decision to avail of such a loan. If your profit margin is too low and if you have offered a very long credit period to your clients, then this type of an arrangement could only transfer your meager margins to your lending company. It is better to understand all the facts, before entering into such an arrangement. In addition to improving your cash flow, these companies can also offer receivables processing and collection of payments from your clients. This means that you do not have to worry about following up on your clients, once you have supplied material to them. You therefore end up making savings by not hiring additional staff for your collections.


So, check out some of these assets based lending companies by comparing their interest rates and the range of services offered by them. There are many companies advertising on the Internet, but crosscheck all the companies, before deciding to go in for any one of them. Your cash flow problems could be solved very fast, in case you decide to hire the services of an asset based lending company.

Accounts Receivable Financing can help your business grow and by solving cash flow problems. The Internal Revenue Service (IRS) has a guide on what defines an Accounts Receivable Financing Company. To receive a quick quote visit this website at: http://www.factorquote.com

frgdr.com NBC’s John Larson is a lender on Kiva.org, and shows you exactly how to make a donation on the site.

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What are the Changes in the Truth in Lending Act

Posted on September 7, 2010

What are the Changes in the Truth in Lending Act

The Federal Reserve Board changed the disclosure requirements for mortgage loan under Regulation Z or commonly known as Truth in Lending.  The changes apply to Mortgage Disclosure Improvement Act which was ratified in July 2008 as an amendment to the Truth in Lending Act or TILA.

You might be asking, what is its importance to buyers or lenders?  Well, the new guidelines want to ensure that consumers receive cost disclosures before the mortgage process and have ample time to learn any changes before a loan closes.  The new guidelines require lenders to give good faith estimates of mortgage loan costs, or what others call it as early disclosures.  This must be performed within three business days after getting a consumer’s application for a mortgage loan and prior to any collection of charges from the consumer, apart from other reasonable fee for acquiring the consumer’s credit history.

The amended Truth in Lending disclosure requirements takes effect last July 30, 2009.  Under the new rules, lenders will be subject to new disclosure requirements for mortgage loans under the Federal Reserve Board Truth in Lending Regulation or the Reg Z.

The new requirements are applicable to loan applicants who filed on or after July 30, 2009.  For lenders, the new policies are complex and make the compliance difficult for them.  While realtors do not have to learn the whole law, they just need to know the basics to be able to give advice to applicants about the possible postponement under the new proceedings.

Basically, the new guidelines cover the following instances: 

Lenders and buyers should wait for seven business days after the lender provides the early disclosures before closing the loan.

The new requirements are applicable to all mortgages secured by a borrower’s property, consisting of primary and secondary houses and refinances.  Investor loans are still saved from this.

The lender may not charge any fees prior to the given disclosure, except for a reasonable amount for getting a credit report.

If the annual percentage rate or the APR increases by more than 0.125%, the lender must submit a corrected disclosure to the borrower and wait for another three business days before closing the loan.

The APR includes not only the interest rate on the loan but certain other expenses related to settlement, so it will be important for any charges that affect the APR to be as accurate as possible, as early as possible, to minimize the need for a correction on Truth in Lending disclosure.

The consumer may restructure or waive both waiting periods for a documented personal financial emergency.  But the disclosures must be acquired not later than the time of the modification or waiver.

This means that most lenders will not know the actual issues until you have worked with the new guidelines for awhile.  However, there are two cases that may exhibit a challenge, the first one is if a buyer applies for a new mortgage of 5.50% and decides to float the interest rate.  If the interest rate increases and the buyer and loan officer do not talk, then the closing is just within three days, then everybody may have to wait.  This is because of the new policies, a new disclosure will have to be observed and both the buyer and lender will have to wait for another three days.

The second case would be if the buyer searches for a property and wishes to close it quickly, because according to the new rules the buyer and lender have a waiting time of seven days from disclosure to closing.

To be able to be guided properly on these new rules, it is best to work with legal experts.  In this manner, you will have a smooth-sailing process and learn the whole method all at the same time.

 

Want to know more about real estate industry? You can visit these sites San Diego Real Estate Live and Real estate article about listings in San Diego

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Will Small Business Finance Be the Next Big Bank Lending Problem?

Posted on September 7, 2010

Will Small Business Finance Be the Next Big Bank Lending Problem?

Commercial lending to small businesses is already on life support based on a number of business financing statistics. Commercial banking companies in many instances would have failed some time ago without government bailouts. As bad as that perspective might sound, this report will provide an even more negative outlook for the future of working capital financing and small business finance programs. Overall it currently appears that commercial loans represent the next big problem for banks and other lenders.

During the past year or so, several banking problems have received significant publicity. These difficulties were largely related to the rising number of home foreclosures which in turn caused a ripple effect involving various investments tied to home loans. Such investments lost value so rapidly that they became known as toxic assets. When banks stopped making many loans (including small business financing), the federal government provided bailout funding to many banks to enable them to keep operating. While most observers would argue that the bailouts were made with the implicit understanding that bank lending would resume in some normal fashion, the banks seem to be hoarding these taxpayer-provided funds for a rainy day. By almost any objective standard, commercial lending activities have all but abandoned small business finance needs.

Based on recent commercial banking statistics, it seems that small business financing is already the next big problem for many banks. In part this is due to the general decline in commercial real estate values during the past several years. This has resulted in some significant bankruptcies when many large commercial property owners have been unable to either make their commercial mortgage payments or refinance debt (or both). While these difficulties were predominantly happening with large real estate companies and did not regularly involve small businesses, the resulting bank losses are clearly having an impact now on commercial lending to small business owners.

Much like the residential mortgage toxic assets caused banks to stop normal lending because of a shortage of capital, commercial banking losses on large commercial real estate loans are already causing many banks to stop or reduce their small business finance activities. The bank losses from large commercial property investors are producing a ripple effect that has caused small business financing to effectively disappear until further notice. While small business owners did not cause this problem, they are suffering the immediate consequences when banks are unable or unwilling to provide normal levels of commercial financing to them.

As with many complex situations, one problem will lead to another. The failure to obtain normal business financing will most likely lead to an increasing number of commercial loan defaults by small businesses. Prudent business owners should begin to take action now in a timely manner to avoid such negative consequences. With proper actions, the biggest small business finance problems can be anticipated and avoided.

Stephen Bush and AEX Commercial Financing Group provide small business finance options for working capital financing, merchant cash advances and commercial loans throughout the United States.

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Secured Lending In Canada

Posted on September 7, 2010

Secured Lending In Canada

There are various types of secured lending in the Canadian business environment. Let’s examine some of those secured loans and discuss some of their characteristics.

When most business owners or financial managers think of secured lending they are thinking in terms of their operating loans or operating lines of credit, sometimes called ‘ revolvers’ in finance language.

These loans are used to financing working capital, primarily receivables and inventory. In taking and registering this security the bank or some similar financial institution will take an assignment of these ‘liquid assets’ of the company. On occasion customers will hear the term ‘ demand loan ‘ and we are in effect talking about the same thing.

How does the bank or other institution secure the loan? They register what is known as a General Security Agreement, commonly called a ‘GSA ‘against the business. In determining their security and overall all ‘credit limit’ with the customer they usually agree to advance against 75% of all good receivables, and some component of inventory. We can, as a general rule, say that banks don’t really like inventory – simply because they aren’t set up to liquidate on it when they have to.
If everything goes well that is as much as the business owner really needs to know. The loan is secured, the bank registers a public security against the company, and the company has access to working capital.

How does the Secured Lender realize on the security? Again, we are talking about the worst case scenario when a bank has determined it needs to ‘call the loan ‘, terminology most business owners know too well but hope they never have to live through. The bank is in effect, at that time, attempting to crystallize on its loan. In securing the loan we spoke of the bank or other lending institution taking an assignment of the assets. Now that the loan has been called an actual assignment is enforced – customers are notified by the bank and monies are collected by the bank to reduce the loan outstanding. The bank now finds itself in a position of having to deal with the inventory they did not want to deal with, and we typically find that the inventory is directed to be sold by an auctioneer or salvage firm, who acts as a temporary agent for the bank.

When loans are enforced in such a manner the results are usually disastrous for the customer and have a major impact on the company’s ability to go forward.

Lenders securities agreements in Canada are all registered under Canada’s Person Property Security Act, and are in effect public knowledge for those that wish to investigate secured dealings. This process is very similar to the UNIFORM COMMERCIAL CODE (UCC) that exists in the U.S., and in fact the security legislation in Canada was very closely model to the U.S. way of secured lending notification.

There are other forms of secured lending Vis Vis equipment, debentures, and security is generally handled in the same manner re: registration, etc.

Stan Prokop is the founder of 7 PARK AVENUE FINANCIAL, a Canadian firm which originates business financing and business bank and operating credit financing for Canadian firms. See http://www.7parkavenuefinancial.com/Home_page.html

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Hard Money Lending Basics: Things That Investors Should Know

Posted on September 7, 2010

Hard Money Lending Basics: Things That Investors Should Know

One of the most preferred real estate financing options today is hard money lending. In a nutshell, this type of lending works by using collateral in order to secure a loan. However, there is more to these loans other than its core concept. Here are some of the things that real estate investors should know about hard money loans:

Hard Money Lending Works on a Short Term Basis. Compared to bank loans and mortgages, hard money loans work in a shorter time frame. Hard money usually has payment terms that range from six months up to two years. Meanwhile, mortgages and bank loans can take at least ten to twenty years to pay. This is a great option for investors who do not want to be bothered with long payment terms.
Processing Time for Loans Are Quicker. As previously mentioned, hard money lenders base a loan’s approval on a borrower’s collateral. Using collateral for a loan eliminates a lot of paperwork that other institutions usually look for when processing loans such as credit scores and other information. A hard money loan usually takes up to two weeks in order to be approved as compared to the standard thirty days for most traditional loans.
Loans Depends on a Home’s Value in Good Condition. Another thing that investors should remember is that hard money lending finances a property according to its after repair value or ARV. This allows investors to finance the repairs and renovation of a home before selling it for profit.
Hard Money Loan Rates are Higher Than Bank Loans. While hard money lenders do offer higher interest rates compared to their traditional counterparts, real estate investors must consider several factors regarding these rates. First, these lenders are releasing bigger amounts of money compared to banks, which is why they release higher interest rates as well. Another factor worth considering is that these lenders are taking the risk of financing a property when it is in good condition. Nevertheless, a lot of investors still go for this option.

The information listed above is a just brief preview on what hard money lending is all about. For those who want to know more information about this type of loan, RehabList.com offers access to hard money lenders all over the country who can answer more questions regarding the topic.

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Sbi: Lending Rate May Not Change Before June

Posted on September 6, 2010

Sbi: Lending Rate May Not Change Before June

State Bank of India (SBI) chairman OP Bhatt has said that its margins will minimize by 20-25 basis points after the bank shifts to calculating interest on savings accounts on daily balances from April 1.
SBI Personal Loan, SBI Home Loan and SBI Credit Card is the main products for People.
Reserve Bank of India has asked banks to change the present system of crediting interest rates on savings accounts. At present banks calculate interest based on minimum monthly balance held between the 10th to last day of each month. From April 1 all banks will calculate interest daily based on that day’s balance.

Chairman of SBI said that although margins will take a hit in the short term, they will recover in the medium term as yields on advances will rise. SBI’s net interest maintains (difference between the cots of funds and yield on advances) rise from 2.30% in June 2009 to 2.82% in December 2009.

“The impact will be 60 to 65 basis on the saving deposit book, which is a third of our total deposits. So the overall impact will be 20-25 bps on NIM,” said Bhatt. “Though, this cost can be absorbed because the average yield on advances will rise once the base rate comes into effect,” he added. At the same time he said that the bank has the option to raise the lending rate to protect its margin. But this might happen in the month of May or June when liquidity runs out of system, he said.

Mr Bhatt said that the bank’s new base rate is likely to be in the range of 8-9%. From April 1, banks have to replace prime lending rate (PLR) with a base rate and no bank will be allowed to lend below the base rate. SBI’s PLR presently stands at 11.75%. He was speaking at the sidelines of a function organised by of Indian Institute of Banking & Finance.

However, he hinted that fourth quarter may be tough for SBI given the rising yield in the bond market. Due to the rise in yields we could see some market to market losses. He also said that SBI may seek exemption from the base rate for priority sector loan and staff loan.

“SBI has huge employee base to whom we lend at cheaper rate and thus we have asked for exemption from base rate,” he said. “Base rate makes sense but there are some implementation issues like priority sector lending and staff loans, all these are gray area right now for which we need to apply our mind and find solutions.”

Meanwhile, he said that SBI is confident of meeting 18% credit growth target because there will be a spurt in credit pickup in March. So the banking industries too see 16% growth as projected by RBI. He also said that the banks is looking at hiring 15,000 to 20,000 new talent next fiscal and it has already hired 25,000 people this year.

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