Home Renovation Loan | What credit to use


As beautiful as your own house may be – at some point the moment will come when a house renovation is necessary. If this is only intended for one or two rooms, this can usually be accomplished with the help of the available financial resources. However, if the renovation work is somewhat extensive, it may make sense to take out a loan for the house renovation. It allows a comprehensive renovation according to the ideas of the owners and provides exactly the money that is urgently needed.

What type of credit should I use?

What type of credit should I use?

As a loan for a house renovation, there are two types of loan. On the one hand the traditional installment loan and on the other hand the real estate loan or renovation loan, which can be taken out under very specific circumstances.

The installment loan, which is free of fixed uses, would be the first choice if it is not yet clear how extensive the house renovation will be, in what period it should be done and who will carry it out. The loan for the house renovation as an installment loan can be flexibly adapted to any project. Without the bank finding out what, and above all, when the money is needed. This allows a scope that allows the subject of renovation to shine in a very pleasant light.

The loan for a house renovation in the form of an installment loan can be taken out with a good credit rating from any bank or savings bank. The effective interest rate is low and the repayment can be made flexible on request. However, it is important that you have a good Credit Bureau and a fixed income. Otherwise it can happen that the installment loan can only be taken out with the help of a guarantor.

However, if you are looking for a dedicated loan, you should opt for a real estate loan or a renovation loan. These are not available from all banking houses, as they are special loans that are only granted under certain conditions.

Both types of credit require collateral that banks are happy to request in the form of a land register entry. In addition, fixed prices and corresponding cost estimates are required so that the bank can see what the money is needed for. Anyone who can do this will receive very good offers that are ideal as a loan for home renovation.

What about government support?

What about government support?

If you can prove that the house renovation lowers the energy efficiency of the house, you may be able to avail yourself of substantial subsidies. This means that the renovation is supported with loans and bonuses. Whether this is the case depends on which renovation is to take place.

In order to be able to have a claim checked, cost estimates for the work to be carried out must be drawn up. This work must also be carried out by registered craft companies. In addition, it must be described exactly what work is to be carried out and what benefits it has in terms of energy efficiency.

The funding institutions will review the information and will then decide whether to agree to funding or not. If funding is available, only a small amount needs to be raised through another loan. Namely for the work that does not have a positive impact on energy efficiency. We recommend that you check whether a government grant can be used before taking out a conventional loan. This is the case much more often than most homeowners assume.

Why repay loans, credits and installments on time?

About 2.5 million people do not regularly pay their financial liabilities. The total amount of debt exceeds USD 60 billion and is constantly growing. This is usually the result of losing liquidity, making wrong or less reckless decisions. Why are your loans loans and installments worth paying back on time at all costs? What are the consequences of this type of debt?

Growing interest

Growing interest

The first of these is growing interest. Failure to pay liabilities on time is completely unprofitable, because the sum of debt will increase until repayment, and we do not allocate this money for investments. Interest is also increased by the costs of reminders sent to the consumer. Banks approach debts differently, depending on their policy, but you can usually get along with them and set a more convenient repayment schedule. It’s really not worth the wait.

Debt spiral

Debt spiral

Especially that the aftermath of tardiness in paying off debts and ignoring this state of affairs is a spiral of debt. This is a situation in which we fall into increasing debts without paying our obligations on time. Sooner or later there is a bailiff’s execution, which at best ends with a rather expensive settlement, in the worst blocking of the bank account or loss of part of the property.

Building a positive credit history

Building a positive credit history

Even if irregular debt repayment is a temporary situation, it can have severe consequences for our future. Banks operating on the market in terms of customer policy were able to form an alliance. His personification is the Credit Information Bureau, which is a database gathering information about all repayments regulated by the consumer. Any delay longer than 30 days is associated with a decrease in the individual consumer ranking points and a negative entry in the database. This is one of the most important criteria according to which banks and non-bank lenders assess the credibility of the client. Unfortunately, in practice one unpaid installment amounting to even several dozen dollars can ruin our dreams not only about the next installment purchase, but even mortgage, despite meeting other conditions.

Debtor bases in practice

Debtor bases in practice

In addition to BIK, there are other debtors’ bases in Poland. These include, among others, the Economic Information Bureau or the National Debt Register. Banks and non-bank institutions also use them. Although repayment of debt makes the negative entry disappear from the database, but as long as it is in it it limits our financial flexibility and creditworthiness.

How do you find funds to pay back your debt?

How do you find funds to pay back your debt?

If we fall into debt, psychology plays a huge role. You should not be afraid of receiving correspondence, telephone or taking the initiative towards the creditor, which will improve our situation. You can usually get along with banks and even bailiffs. In addition, we gain time to find an additional source of income. It can be a loan provided that we realistically assess our repayment options and is granted on favorable terms.

What financial steps should I take after repayment of loans?

Nowadays, the inability to repay loans is quite a problem that many people struggle with, and that is why there is a lot of talk about getting out of debt. It is good to have helpful advice for people struggling with credit, but it has to be understood that it does not end there. If you have paid off your debts, this does not mean that your financial situation has suddenly become stable and you can live without worrying about the future. Once you are caught in a credit trap, there is a very good chance that it will happen again, unless you make certain financial steps after the loan is repaid, nothing much will change. Here are the financial steps to take after you have cleared all your debts.


1. Understand the root of the problem

repayment loans

Not getting into debt again is as difficult as getting rid of them, so before you even start doing any practical work on your finances, think how did you get to that situation at all? For many, the answer may seem simple, such as having to take out loans that could not be reimbursed because of unexpected expenses, but this is not a complete answer. The need for and the taking out of credit are just a consequence of many causes. These reasons may include, for example, failure to make savings, inability to deal with credit-free problems, reckless treatment of credit, etc. Only when you have understood your guilt in a particular situation will it be possible to make a difference and make sure that you never get into financial difficulties in the future, or at least you can deal with them more wisely.


2. Don’t go back to your previous habits

2. Don

Once you have succeeded in paying off your debts, you certainly know what it means to save and give up various wishes. In principle, this means that you have proven to yourself that you can live a different life and that your financial problems have always been the result of frivolousness and not too little income. Usually, after getting out of debt, people think that one can finally breathe in and resume life according to old principles and habits, but it is not. This is the way back to debt. After the repayment of the loans, savings must also be made. Perhaps the new austerity plan may not have to be so drastic and you can spend a little more than you had when you were in debt, but under no circumstances do you want to put all your money back on unnecessary things and live from pay to pay.


3. Set new financial goals

3. Set new financial goals

The main, or perhaps only, purpose of paying off loans was to repay the loans, but then new goals had to be set. One of the most important is definitely to make provisions for unforeseen situations. As mentioned above, one of the most common reasons for falling into the credit trap is not saving. Many people think that they get into debt because of something unexpected and in urgent need of money, but you wouldn’t have to take out the loans if you had your own money to use for just such situations. The minimum contingency reserve is three of your monthly salary. Only if you have at least a minimum savings fund can you consider reducing your savings, but you should think about the future afterwards. You should definitely set further goals, such as saving money in a private pension fund or making other investments.


4. Learn other ways to find money

4. Learn other ways to find money

Finally, it must be realized that you do not always have to borrow to solve your financial problems. You need to know the different ways to make money, when you need it urgently. Savings cannot always solve everything, so it is very important to think in good time about what you can do if you are in financial difficulties. For example, think you have no talent or knowledge you could make money from? You can also inquire about opportunities for overtime at your workplace. You can also make austerity plans well in advance of those worries when money is really needed and your desires have to be put second. Nowadays, there are really many ways to make money, you just have to think outside the box, not at the first hardship, to run a number of quick loans.

Once your loans are paid off, you can start a beautiful, financially independent life, but you need to know how to do it. The most important thing is to learn from your mistakes and realize that without changing anything, nothing will change by itself. You can never repay your debts and naively hope that all your financial difficulties are over. Unless you carefully overhaul your personal budget and continue to think about your future and financial well-being, there is no great hope that your faults will end.

Real Estate Loans

With a real estate loan, you can buy a house or apartment. These loans are offered by banks, housing associations or other lenders and are often backed by a mortgage on your property. In Real Estate Finance: What is a Real Estate Loan? A real estate loan is used to finance residential real estate or renovate old buildings. The financed real estate serves as collateral for the real estate loan.


Real estate loans – biggest mistakes

Real estate loans - biggest mistakes

Error 1: If I have discovered a property, it goes to my house bank. On the one hand, the owners of the property or plot of land expect you to immediately go with him to the notary companion, if there is a real interest in the purchase. If not, the property is soon gone. If you do not receive a real estate loan after attestation, the contract must be dissolved at your expense.

Even if you receive a loan offer from your bank early before the notarial certification, this does not necessarily have to be particularly profitable. Do not give anything away unnecessarily, a good loan broker usually gets an interesting bid as the bank, as foreign banks offer particularly good conditions for new customers. Mistake 3: I have a real estate loan with no own funds.

Mortgage lending was also carried out by banks without own funds until not so long ago. Since the financial crisis, banks have been forced by law to assume more responsibility themselves. Young researchers with high revenues have the best chance of receiving funding with little or no capital. Even if you have agreed on a low repayment rate with a house bank in order to get the monthly loan rate low, the house bank does not yet have to support this.

Starting in 2016, credit institutions will have to check whether a borrower can repay the money until retirement, or how he would otherwise serve it in old age. As a rule, repayment rates of 1 or 1.5% are no longer possible; Depending on the age of the borrower, loan volume, etc., a house bank can also demand a repayment of 3, 4 or even 5%.

A sufficiently high repayment rate is also in the interest of the borrower – if feasible for him – since it then becomes faster debt-free. After the end of the debit interest obligation, eg after 10 or 15 years fixed interest, the residual debt with high repayment installments is significantly lower than the original loan amount.


Real estate loans in comparison

Real estate loans in comparison

Do you want to know which real estate loans are suitable for financing? Are you interested in calculating different mortgage lending variants with suitable loan calculators? You have already found a cheap real estate loan? The appropriate answers to all inquiries can be found on this or on the respective sub-pages. Which real estate loan is the right one for my project?

Where a real estate loan can be taken up, there are a variety of possibilities. The repayment options are also different. For an overview of all loan forms with a brief description, see Loan Types. These and many other questions can be found under the heading: Loans with constant repayments – so-called annuities – are the most common, but by far not the only possible repayment.

The specific features of each type of loan in terms of repayment are presented. For detailed information, please click on the appropriate keyword. A real estate loan or a loan may have other special features depending on the purpose. For example, home loans can help you figure out how to pay off a mortgage loan early and what you need to be aware of when closing it.

Credit card for your beneficiaries

Upon receiving your shipments with Banco Industrial for more than 6 months, your family members can obtain a classic VISA credit card. Why is a credit card useful? This tool allows them to make their purchases in a safer and more controlled way than cash, and allows some flexibility when they have not yet received the shipping money to pay for their regular expenses, such as groceries and food. Learn about other advantages that your family members can take advantage of.


Ease of payment and withdrawal

credit cards

With more than 1350 service points, your family can find a place that serves them, every day of the year, to make their payment. But there is also the possibility of making the payment through their website. Cash urgency? With the debit card you can get it at the Banco Industrial ATM network.


Accumulation of points

credit cards

This benefit allows your family to access a wide range of prizes to indulge, or to renovate or remodel your home. As they make their purchases they will accumulate more points. Just remind them that a credit card carries the responsibility of paying on their dates.


Additional services

credit cards

A credit card opens the possibility for your beneficiary to participate in promotions and discounts within certain merchants. VISA acceptance also allows you to shop comfortably in thousands of affiliated establishments. On the other hand, the card offers insurance (optional and with cost) that will help take care of your money and the welfare of your family.

Are you interested A credit card will give your family members huge benefits. Select a beneficiary of your nuclear family between the ages of 19 and 65, who knows how to read and write and who has full confidence. To obtain it they need the following: a copy of DPI, a water, electricity or telephone bill, a minimum income of $2,000 per month in remittances and a savings or monetary account at Banco Industrial.

Payday loans online no faxing same day -Try online loan application poor credit


The basis for safe lending is a thorough x-ray of a selected non-banking company. Our service also allows you to check the opinion of a given lender. Below we present a review of the Bolster.pl brand created based on the opinions of our users. Find out when it is worth to borrow at Bolster.pl and learn about the advantages and disadvantages of this company!

Try online loan application poor credit

It is definitely worth check out Payday Champion for payday loans for bad credit, offer in a situation where we have bad credit. The new client can count on a loan of up to PLN 800 at no additional cost. What’s more, this company also allows you to extend the repayment date on very attractive terms, which in the case of problems with the return of debt can be a favorable option for us.

A loan to Bolster.pl should also come to people who have already used the possibility of free borrowing somewhere else. The costs of further payday payments in this company are maintained in the limit imposed by the so-called a new anti-usury law and are very close to the prices currently in force on the market. Returning customers Bolster.pl offers a loan of up to PLN 4,000. This offer is therefore especially recommended for those clients who need to borrow a larger sum of money quickly.

A big advantage of Bolster.pl is the lack of control of the borrower in the Bolster Information Bureau. People who need a break are very often looking for loans without BIK. Bolster.pl is an excellent response to the needs of such people.

The pros and cons of payday loans at Bolster.pl

Help us to complete this list! Describe your experience with Bolster.pl in the comments below. All opinions and stories of clients are read by us and taken into account in issuing opinions on Bolster.pl.

Advantages of a loan at Bolster.pl:

  • a free loan for new clients (up to PLN 2,500),
  • no client control at BIK, 
  • the option to extend the loan repayment date,
  • attractive prices of subsequent loans,
  • the high maximum amount for subsequent loans (up to PLN 4,000),
  • no additional overdue costs (the client only pays interest),
  • the possibility of contacting the lender seven days a week,
  • loan transfer up to a few minutes after the application has been approved,
  • affiliation to the Loan Companies Association.

Bolster defects at Bolster.pl

  • low amount of the first free loan,
  • loan not available to seniors (maximum age of the borrower is 65 years),
  • customer control in KRD, BIG ERIF and BIG Infomonitor.

Women Auto Loan – In Sberbank, Conditions, Requirements, Interest, Terms, Pros and Cons



Russian banks are constantly trying to attract as many customers as possible for lending. Experts analyze the market, develop new approaches, programs. The next new and original proposal in 2008 was a female car loan. It was first offered by the Orient Express Bank. Then he appeared in Raiffeisen Bank, etc.


  • Conditions
  • How to make?
  • What banks give women’s auto loans?
  • Requirements for borrowers
  • Interest rates
  • Documents
  • Timing
  • How to repay a loan?
  • Advantages and disadvantages

His idea was that women of any age group could get such a car loan.

Money can be presented not only for the purchase of a new or used car, but also for the repair of an existing vehicle. Very often, banks provide this type of loan in cash.

Moreover, the representative of the fair sex may not have a driver’s license at all. The bank only needs to see the driver’s license of the husband or next of kin. We will talk about this type of lending below.

Conditions ↑


A woman’s car loan can be issued by a woman who is at least 21 years old at the time of contacting the bank.

The bank provides money to buy or repair a car. The amount of the loan can reach 500 000 rubles (East Express). Bank loans to customers from 3 to 60 months.

A preliminary decision (even before choosing a car model) can be obtained by filling out an online application.

It is possible to acquire a new or used car not only at car dealerships, but also from a private individual. When buying a used car, its service life should not exceed 15 years.

If the loan amount does not exceed 300,000 rubles, the acquisition of a hull insurance is not necessary, but life insurance is necessary.

If the client nevertheless refuses insurance, he needs a guarantee from his relatives, husband, or collateral.

How to make? ↑

How to make? ↑

You can get a loan for a new or used car as follows:

  • choose a car;
  • pick up a bank that provides female car loans;
  • get advice, clarify the terms of the transaction (pay attention to some financial issues: are there any additional services and can they be discarded);

  • apply online or visit the bank in person and write your own application;
  • wait for the preliminary decision, then collect the necessary package of documents;
  • sign a loan agreement, pay for insurance, make an initial advance payment and after the bank pays the bill, pick up the car from the car dealership or from the dealer.

It should also be remembered that the basic conditions offered by the bank at the initial consultations may differ from the final ones stated in the loan agreement.

Therefore, before you sign the documents, carefully read their content.

What banks give women’s auto loans? ↑

What banks give women

Representatives of the weaker sex can get as special, designed for them car loans, as well as the usual standard loans for the purchase of cars.

The table shows the best deals:

Bank Rate Period Prepaid expense Amount
Oriental Express “Female” individual
3-60 months individual
15,000 – 500,000
Raiffeisen “Lady Spark” 11.5-16.5% 60 months 15% up to 3 000 000

East Express Bank

The bank was one of the first to offer a unique car loan intended for women, its conditions were as follows:

  • You can get a loan for up to five years;
  • you do not need a driver’s license;
  • money can be obtained in cash;
  • preliminary response – within an hour;
  • registration without insurance policies is possible, but a pledge or guarantee is required.


Speaking of lending, it is impossible not to mention the largest and most stable bank – Sberbank.

There are no targeted car loans programs at the moment, but you can get a car on credit through other great programs, for example:

  1. A loan secured by individuals (non-earmarked) – up to 3,000,000 , at 14.9% per year, a period of up to 60 months.
  2. A loan secured by real estate (non-earmarked) – up to 10,000,000 , at 15.5% per annum, a period of up to 120 months, with no down payment.

 Want to know what the conditions of car loans in Sberbank? In our article , you will find a lot of useful information on this type of lending.

If you are looking for an opportunity to get car loans with government subsidies on favorable terms, then we recommend to follow the link and read the article.

Requirements for borrowers ↑

Requirements for borrowers ↑

To get a female car loan, the representatives of the weaker sex must meet fully satisfiable criteria, namely:

  • age from 21, but not more than 65 on the date of last payment;
  • Russian citizenship;
  • accommodation and registration in the region where the branch operates;
  • work experience – from three months;
  • solvency – officially confirmed income, which will allow to service credit obligations.

Additionally, other criteria may be prescribed, the fulfillment of which will become mandatory for signing a loan agreement.

Interest rates ↑

Interest rates ↑

As for the interest rates for women’s auto loans, they are slightly higher than in standard programs.

Numerous parameters affect the fee for using a loan:

  • the period for which the car loan is issued;
  • car loan amount;
  • the amount of the down payment;
  • CASCO insurance, life insurance, etc.

The basic minimum rates prescribed by banks today are 17.5-22% per annum.

In addition to interest rates, it is necessary to take into account the existence of a commission, “additional” services, fees under insurance policies, which may become an obstacle to the signing of an agreement.

Documents ↑

Documents ↑

For registration of a car loan, women need a small package of documents, namely:

  • passport;
  • driving license of the borrower, for which a loan will be issued, or a husband, a close relative;

  • PTS for cars;
  • when purchasing a car from a private person, you must have a seller with a civil passport;
  • general power of attorney of the seller, if he is not the owner of the documents;
  • compare account

Additionally, you may need documents on the collateral or the guarantor.

Terms ↑

Terms ↑

You can apply for a women’s loan for a period from three months to five years, in some cases up to seven.

Early repayment is possible, but as for additional commissions, it is necessary to specify in the bank in which such a loan is issued.

Consideration of an application for a loan to a client takes from several hours to two days.

For women’s auto loans, a preliminary decision can be made by the bank even before the client chooses a car.

As for the conclusion of the contract itself, everything depends on the speed of collecting the documents of the future car owner; the sooner the requested package is provided, the sooner the documents will be signed. Usually the process takes several days.

How to repay a loan? ↑

How to repay a loan? ↑

Car loan repayment takes place in a standard form, that is, the borrower is required to make a specified payment every month.

The loan amount may vary throughout the loan period (differential payment) or remain unchanged (annuity payment).

You can pay the loan in any of the following ways:

  • at the bank in which the loan was received;
  • in terminals or ATMs that have a cash-in function;
  • through the client-bank;
  • in other banks and payment systems.

The borrower must understand that the late payment of the next payment will lead to the accrual of penalties, lowering the credit rating.

Therefore, if financial problems arise, it is better to notify the bank in writing about it and try to solve the situation peacefully, for example, to refinance the loan.

 If you want to know which banks issue car loans without a down payment, read our article .

Under what conditions and at what interest a loan for a small business from the state is issued in 2019 , you will find out here.

And to find the answer to the question – where to get a loan for small business development, you can in our article .

Pros and cons ↑

Pros and cons ↑

Now we will try to understand the advantages and disadvantages of such lending. The drawbacks of such a loan are obvious:

  • overvalued interest rates compared to standard car loans programs;
  • the model range is limited to the female auto loan program (often banks are willing to lend according to the program only “female” or certain models);

  • refusal to purchase CASCO not only increases the interest rate, but also transfers all responsibility for the car to the borrower.

As for the advantages, the representative of the weaker sex at any age (from 21 years of age) can apply for such a loan, money can be provided in cash, the loan can be spent on repairing an already existing car, buying a new or used (not older than 15) transport facilities.


How to Borrow Loans Affects Your Credit Score

Loans are money given from one person (lender) to another person (the borrower) with a promise to repay. When you borrow a loan, you usually sign a contract that agrees to make a certain amount of payment on a certain date each month.

In a broad sense, credit is the belief or belief that you will repay the money you borrow You are said to have good credit when the lender believes that you will pay off your debt and other financial obligations on time.

However, bad credit shows that you cannot pay your bills on time.

Payment of loans and even a loan loan itself has an impact on your credit, more specifically, your credit score is a numerical representation of your credit history at a certain point in time.

 Your Credit Impact Loan Application

 Your Credit Impact Loan Application

Just applying for a loan can reduce your credit score, even if it’s only a few points. That’s because 10% of your credit score comes from the number of credit-based applications you make. Every time you apply for a credit, an investigation is carried out on your credit report which shows that the lender has reviewed your credit report. Some questions, especially in a short period of time, might indicate that you really need a loan or that you take more loan debt than you can handle.

If you shop for a mortgage loan or a car loan, you have a grace period where several loan questions do not affect your credit score.

Even after you finish shopping, loan requests are treated as a single application. From a few. The window of time between 14 and 45 days depends on the credit value given by the lender to check your score.

Loan Payments Are Right on Time to Increase Credit Value

After you approve the loan, it is important that you make monthly payments on time.

Your loan payments will have a significant impact on your credit. When it comes to your credit score, payment history is 35% of your credit score. That’s more than other credit score factors.

Timely loan payments will help increase your credit score, making you a more attractive borrower. However, late loan payments will damage your credit score. Defaulting to your loan can result in a series of late payments followed by more serious stains such as withdrawals and seizures.

May High Loan Balance Harm Credit

May High Loan Balance Harm Credit

Your loan balance affects you credit. You will get credit points when you pay your balance. The greater the distance between the initial loan amount and your current loan balance, the better your credit score.

Loan Ratio and Your Debt to Debt Ratio

Loan Ratio and Your Debt to Debt Ratio

Your loan as compared to your income is not included in the credit value sold by FICO and the credit bureau. But, many lenders consider income as a factor in your ability to pay off loans, so their proprietary credit value can use your debt to income ratio as a credit consideration. Your debt to income ratio sets all your loans and credit cards with your total income. A high debt to income ratio can increase your risk value with a lender and make you refused to get a loan.

AutoCredit | Quick Loan

Who in modern society does not want to buy a private car? Own car was a dream, both in the USSR and now in Russia, only now it is much easier to buy a car than before, it is enough to apply at least to Energobank and issue an Auto Loan auto loan with a rate of just 7.17% per annum!

Some useful information for potential borrowers of the Avtohit loan. This loan product is provided by the bank within the framework of the program of preferential state car loans. The conditions for issuing a loan for a car are more than acceptable for the average Russian, or more precisely: there is a reduction in the base interest rate on the loan by 2/3 of the key rate of the Central Bank of the Russian Federation, which will be valid on the date of the loan.

As in other banking organizations operating in the market of preferential loans to Russians, the program establishes a number of rules:

As in other banking organizations operating in the market of preferential loans to Russians, the program establishes a number of rules:

  • the car must be new and not older than 2016 release inclusive;
  • the cost should not exceed 1,150,000 rubles.

If you do not quite understand something and there are doubts about the loan offer, then you can, contact any of the offices of Energobank and the staff will answer all your questions and help in obtaining a loan from AvtoHIT. You can buy cars under the AvtoHIT program at any of the car dealerships accredited by the bank, not to be confused with MFIs that issue loans for a short period of time. At your service will be provided a loan calculator from Energobank, with the help of which you will be able to calculate everything on your loan.

Car loan “Avtohit” is:

  • low interest rate of 7.17% (including all discounts to the base interest rate)
  • possibility of registration without hull insurance
  • convenient loan repayment scheme

You can receive more detailed information on the AvtoHIT preferential car loan program either in the “Credits” section of the official website of the banking organization or from the specialists of the Bank’s contact center at (843) 293-93-93.

Entrepreneurial Capitalism – Acquiring Skills, Strengthening Community Position and Micro Finance


What is the strategic link between abundant resources, human development and economic development? What is the critical and strategic link between human capital and economic progress? Why income inequality persists, despite strong economic growth? What are the paths for social mobility? What are the ways to the middle class – the most important stabilizing force in all societies? Some answers to these questions are enormous and report on the ongoing debate on sensible policy options to address the complex problems of high unemployment among university graduates in developing countries in general and in sub-Saharan Africa.

A meta-analysis of existing scientific literature suggests that inequality in income is maintained both in developed countries and in developing countries, despite obvious and significant economic growth. There are many theoretical, structural and empirical reasons for the growing gap between returning to capital and work on one side, as well as compensation for management and workers, on the other. Capital, for example, seems more productive, more mobile, and in many jurisdictions it receives a very favorable tax regime than work.

In addition, global competition, innovation, slower productivity growth and marginal technical replacement rates may reduce wages, even in developed countries. Moreover, the benefits of globalization continue to grow unevenly in the case of highly skilled labor than in the case of low-skilled workers. Finally, periods of economic growth tend to correlate with an increase in inequality in income, as different sectors of the economy, like individuals, do not develop at the same pace.

As has already been explained in many publications on this issue, human capital analysis refers to acquired skills that develop through formal and informal education at school and at home, as well as through vocational training, experience and mobility, and longevity in the labor market. It should be remembered that both peoples and individuals are portfolios of distinct competencies that come from resources and opportunities. Many countries in developing countries have a lot of resources, but they lack the ability to be productive.

Of course, the mere possession of resources is a necessary but not sufficient condition for economic development. Functional human capital, manifested in increasing efficiency and innovation, is a key and strategic link between resources and economic development. A preliminary analysis of macroeconomic data suggests that the problem of economic stagnation is not specific to developing countries and is not limited to them. Indeed, for many years in developing countries such as Nigeria, a significant part of all university graduates work part-time, have an employment contract without any benefits to work, or have no job even after receiving a national service and certification.

Many experts from the labor market and social observers are ready to note the acute lack of knowledge and skills that require high levels of employment. Although this may be true, the lack of functional education leading to employment is only part of the problem. There is considerable and empirical evidence that many Nigerian university graduates are not remunerated or regularly compensated for a longer period of time, while others work under a low income contract and lack of employment incentives or guaranteed permanent employment.

Before postulating that acquiring skills is neither a panacea nor the fastest way to use, one should keep in mind that the knowledge and skills that you can use are a necessary, but insufficient condition for social mobility. This is partly explained by the fact that many graduates of technical universities and technical colleges with very high demand for labor market growth are not achieving much better results than those from liberal schools and even business schools and engineering.

Therefore, the acquisition of skills acquired by the Occwell Center for Procurement (OSW) is aimed at providing graduates and entrepreneurs with effective steps towards functional education, acquisition of knowledge and skills, self-employment, independence and financial independence. As the right path to the social mobility of middle and upper-class, each project of acquiring knowledge and skills should focus on the production of entrepreneurs – a group of graduates with a keen desire for self-employment, independence and financial independence. Graduates should not only have the necessary knowledge and skills in their particular profession, but they must be entrepreneurs who know the business and have a clear understanding of the knowledge and skills in business management. It should be remembered that all entrepreneurs are the owners of companies, but not all business owners are entrepreneurs.

Entrepreneurs are a special group of business owners who take on all the risks in terms of profit and financial freedom. Without the entrepreneurial class, other factors related to production, land, labor and capital, including technology, remain inactive and are considered to be the profession of financial engineering as a loss-making asset. As some experts rightly say, when you decide to work for yourself, you will never go back to work for someone else. In general, people are not going to fail, they just do not plan. In addition, freedom, whether spiritual, economic or political, is indivisible and must be constantly pursued. The passion for financial freedom is a critical difference that distinguishes entrepreneurs.

Okwelle Skills Center Model:

Okwelle Skills Center Model:

The concept of acquiring skills as a tool for strengthening and developing the community is not new. Concepts, principles and problems are well documented in the relevant scientific literature. Read the manual for the same topic for a complete historical story of the rules of acquiring skills that inform many commercial schools and technical schools, training programs, etc. Until the Civil War in Nigeria. The concept of the Okvelle Center for Skills (OSAC) focuses on practical and technology-oriented curriculums.

OSAK will primarily provide accredited certification programs for the profession and career for students from the Niger region, the state of Imo, as a center and magnet for the industry. Procurement Center The Okwelle Skills Acquisition Center fully integrates functional skills and microfinance to ensure that visions of self-employment, independence and financial freedom have become a reality for our graduates. The key strategy of OSOS-PPAC-OSAC is well established and proven. When the relationship with the Netherlands Delta Development Commission (NDDC) is fully formalized, OSAC intends to use our network with global institutions, articulation agreements with higher education institutions in the United States, the Okigwe Diaspora and Okigwe friends to fulfill our mission and achieve our strategic goals. ,

As our employees live in the target communities, they introduce context-based knowledge of social issues. This allows OSAC to avoid policies, analyzes and programs that are not related to reality. OSAC will strive for creative collaboration and strategic partnership by working with global institutions such as the World Bank, the IMF, USAID and other civil society organizations (CSOs) that have a common mission and NDDC through the exchange of information, dialogue and consultation at the global, national and At national levels, Knowledge is the strategic weapon of the OSAC.

Some operational tips:

Some operational tips:

Many new businesses are failing. Therefore, the most important goal of effective skills acquisition projects is to assist new entrepreneurs in minimizing the failure rate of new enterprises. Entrepreneurs need to have a good understanding of the basics of business, such as the effective management of people, processes and products. In addition, entrepreneurs who carry out new business activities must act in accordance with a known probability of success. The OSAC project integrates microfinance by acquiring knowledge and skills with a successful 3M venture business (Money, Management and Marketing).

As you know, many industries outside the business, such as architects, dentists, pediatricians and lawyers, etc. Pass the university without passing the necessary business courses. However, after graduation they become owners of small private companies. These disadvantages are then supplemented during the professional training or employment of business managers. However, without practical knowledge of the basics of entrepreneurship, small business owners are completely dependent on business managers. The agency’s problem arises when the interests of business owners are different from the interests of business managers, both regular employees and external help. In addition to the agency’s problems, small business owners need to understand what the numbers mean to provide effective leadership, supervision and control. Thus, the OSAC curricula will include the role of relevant business systems and functional business areas based on sound management principles and current best industry practices.

The initial review of unsuccessful small companies shows a general picture: the lack of concern for 3M businesses: money, management and marketing. In addition, many small businesses ignore the concept of a business entity: the company’s activities must be recorded separately from the activities of the owners. Indeed, the personal activities of a small business owner should be separate and separate from the business entity. Many small businesses find themselves in trouble because they do not get such a distinction, especially as regards cash flows and the use of cash from business transactions.

Proposed training programs

Proposed training programs

OSAC will have seven training programs: the Computer Science School, the School of Design and Design, the School of Electronic Technology, the School of Business Technologies, the School of Agrarian Technology, the School of Health Technology and the School of Nursing. OSAC will provide the skills and knowledge that our graduates can use to gain employment opportunities in the modern world.

OSAC programs will combine traditional academic content with applied learning concepts, and much will be devoted to practical laboratory research. The advisory committees will include representatives of local businesses and employers that will help each OSAC program periodically evaluate and update training modules, equipment and laboratory design.

Some Strategic Goals

Some Strategic Goals

(1) Apart from the development of human potential and the formation of a constantly growing pool of skilled labor, OSAC will support a culture of self-employment and independence in employment and job creation. The ultimate goal of OSAC will be to contribute to the continuous improvement of our domestic manufacturing processes, as well as opportunities and innovations – the introduction of new ways of functioning.

(2) OSAC provides for seminars on financial literacy as part of a business technology program that will allow our communities to gain access to revenue generating workshops, strengthening and strengthening their independence. The Procurement Center, Okwelle Skills, with integrated microfinance programs will provide access to credit, appropriate training and the development of the importance of savings and investment for our graduates.

(3) OSAC plans to provide tools and training to increase agricultural production locally. The Niger region as a whole, and the old Okinge-Otanzu Otanchar, in particular, have natural objects and the necessary human capital to become a food cell in the south-east. OSAC will encourage agroholdings, where they will be able to introduce new technologies and fully mechanized agriculture and food processing.