07 July 2023

Financing Solutions for Individuals

1) Interest rates have gone up by 2.65% last year. How has SWAN Capital Solutions’ loans portfolio fared so far?

SWAN Capital Solutions provides loans to individuals through SWAN Life's Loan Department. Our philosophy is to support our Clients in their life projects be it for the short to medium term or for the longer term. We are the one stop shop for our Clients as they seek our expertise for all their financing needs. SWAN has thus been offering loans since over 60 years now. Our loans’ portfolio exceeds the MUR 6 billion mark and we continue to innovate with new loan products to cater for new demand such that our Clients continue to progress.
Having said that, the recent 2.65% rise in interest rates in less than 12 months has been a tough phase as existing clients as well as new clients have been significantly impacted. Borrowers now face higher monthly repayments, which can have an adverse effect on their cash flows.

The current elevated interest rates has been a set back for individuals who are seeking loans. The increased cost of borrowing has dissuaded many potential borrowers, causing them to consider postponing their projects or reviewing their loan amount and pitch in more equity. This trend is reflected in our portfolio’s growth figures, where new business is less buoyant versus previous years.

2) What strategies can one individual (Or people) employ to mitigate the risk of excess indebtedness?

At SWAN Capital Solutions, our role is to assist individuals in achieving their goals, fulfill their dreams while advising them for the best financing solution. To be able to provide the best advice, we engage in a tailored credit analysis for each Client. Our starting point is the actual financial situation of the Client with primary focus on the monthly cash flow and the current indebtedness. We will then move to the future projects of the Client and how this integrates with the current situation. With an overview of the Client’s current and forecasted financial status, our financing solution will hence be aimed to provide the right balance for the Client and help avoid over-indebtedness. Our proposed credit parameters and mode of repayment will be worked out accordingly.

We firmly believe in implementing effective strategies to achieve financial independence. First and foremost, creating a detailed budget is crucial as it allows you to track your income, expenses, and savings while enabling a clear understanding of your financial situation.

Living within your means is another key principle we vouch for. It is important to maintain a healthy debt-to-income ratio by keeping your debt payments manageable in relation to your income. Periodically reviewing debts, interest rates, and repayment plans is essential for effective debt management. This will allow exploration of options such as debt refinancing or consolidation to facilitate more efficient payment management.

Moreover, educating yourself about personal finance, including interest rates, credit parameters we look at and monitor, is important for making informed decisions. Speak to us when needed to ensure comprehensive financial understanding. Prioritizing debt repayment is key, focusing on tackling high-interest debts first and accelerate the path to debt freedom.

In the event of financial difficulties, it is important to have an open communication with us. This enables us to sit down and explore different options together to protect your credit worthiness like payment plans or deferments, preventing late fees, penalties, or negative credit reporting.

Each individual's financial situation is unique and adapting these strategies to specific circumstances is highly important.

3) What are the different loan products that SWAN Capital Solutions provide to meet the financing needs of its clients?

At SWAN Capital Solutions, we understand that each Client’s financial journey is special and requires personalized attention. We take pride in offering a diverse range of loan products designed to cater for our Clients’ specific needs and empower them to achieve their financial goals. Allow us to guide you through our loan offerings:

1) Real Estate Loan:
If you have aspirations related to residential properties, construction lots, home renovations, or real estate investments, our Real Estate Loan is crafted precisely for you. With a maximum loan term of 30 years, extending up to the age of 65 years, you can comfortably pursue your real estate goals. We provide financing for up to 100% of the project cost, and our variable interest rates start from 6.15% per annum. We also offer additional features like the option for a moratorium period to ease your cash flow and flexibility when it comes to the repayment mode.

2) Personal Loan: Secured or Unsecured
We recognize that life brings along various financial needs and dreams, sometimes planned or unplanned. Our Personal Loan empowers you to fulfill those aspirations, whether it is obtaining extra cash, purchasing a car, planning a wedding, funding education expenses, acquiring a yacht, or embarking on a dream vacation. We offer both secured and unsecured loan options tailored to your individual circumstances.

3) Investment Backed Loans:
For clients seeking to optimize funding costs or maximize returns on their investments, our Investment Backed Loans present an excellent opportunity. These loans are secured against your existing investment portfolios, eliminating the need for additional collateral or fixed charges on your assets. The loan amount offered depends on the type of investment.

In addition, If you also wish to optimize an asset that does not generate any income for you, you can obtain a loan by using that asset as collateral and invest the borrowed amount in financial instruments that will provide you with returns on investment.

We provide a maximum loan term of 10 years (up to the age of 65 years), and the financing amount, interest rates, and other details vary based on the specific investment type.

It is essential to note that the terms and conditions of our different individual financing solutions may be subject to variation based on factors such as creditworthiness, loan amount, and individual circumstances. We highly recommend reaching out to our dedicated team at SWAN Capital Solutions for personalized and up-to-date information on our loan offerings. We are committed to helping you achieve your financial goals and providing you with the best possible loan options. Contact us today at 203 4600 and embark on a journey towards financial success.