Loans are not in fashion today!!! - News about real estate, Kiev, Kyiv region. Real Estate In Ukraine
By the summer of financiers considerably diminished the ardor not only offer auto and mortgage loans and small consumer loans...Loans under "zero" out of fashionBy the summer of financiers considerably diminished the ardor not only offer auto and mortgage loans and small consumer loans for the purchase of household audio and video equipment, mobile phones and so on.Despite the traditional seasonal reduction of demand for small-bore target loans, they are cool and don't try to attract inhabitants traditional cheap, and even no-interest loans. Not too bothered about the competition, bankers impose a new fee for the issuance of loans for dummies and making the conditions for lending.Life insurance as a required loadBorrowers are applying for small cash loans, are forced to pay exorbitant rates and fees on loans, but also to buy "related" services. An increasingly common phenomenon in the insurance market is becoming borrowers. "For example, our Bank offers clients the optional service of insurance of risk of loss of efficiency from an accident. The loss by the borrower of disability SC guarantees to pay the outstanding balance on the loan. The price of such insurance proposals ranges from 0.4% in the month to 1.1% depending on the insurance program and loan product," says head of consumer lending at Alfa Bank Taras Stepan.As a rule, introducing a requirement for insurance clients, financiers hope to make extra money on commissions from insurance sales, and support of affiliated insurers. For example, the same Alfa-Bank offers its borrowers to insure at the sports complex "Vesta" (recently renamed "alpha Insurance"), a member of "Alfa-Group". Home Credit Finance recommends to clients the service of JSC "Czech insurance company Ukraine - life Insurance", a member of Generali - PPF Holding, Delta-Bank - UK "gate of Life", etc.Some banks insist that borrowers insure the life without fail. "Since July, VAB Bank has introduced this service on cash loans. Life insurance is compulsory for the first year of the loan, then upon client's request. The rate for such insurance is 3% of the loan amount," he told the chief of Department of retail business retail business of VAB Bank Anton Shaperenkov.However, the majority says that the acquisition policy is not a mandatory condition for obtaining a loan. But in most cases bankers are enough arguments to convince the client of the benefit of the insurance. "The customer who agrees to purchase the services, has the ability to make a loan cheaper or on more favourable terms. The borrower can get insurance for almost any credit product, including credit card," says the head of the press center of the Bank Elena Yaik.But when you receive the "special" loans, the borrower must insure without any conversations. In most cases, ordinary people are not even aware that the insurance payment, which they will have to make can "eat" quite a significant amount of discounts. The rates for such insurance at times exceed the prices that are set for auto or mortgage borrowers. On average they range from 0.3 to 1% of the loan amount per month.For example, if the cost of accident insurance for borrowers taking a loan to purchase real estate, is about 0.5% of the sum insured, for buyers kettles and washing machines it can reach 12-13% of the loan amount or more.Gift - only for moneyShift strategy bankers explain the same financial problems that are observed in the market since the beginning of spring. "The downturn in the segment of consumer loans is associated with limited opportunities for banks to attract resources. Internal resources to support sales in this segment is often lacking, and the involvement in foreign markets is limited and constantly rising in price," says head of consumer lending at Alfa Bank Taras Stepan. "Traditionally in the summer months the population falling demand for loans, not only in the segment of consumer goods, but also by programs auto and mortgage lending. This year the trend has increased also due to difficulties that arose in some banks with low liquidity of the financial market," adds colleague Director of business development at Home Credit Finance Sergey Slunicko.Lack of money forced the bankers to revise its product line, abandoning the lion's share of loans with a zero rate. According to experts, if in April-may interest-free loans were made in the proposals of the Bank about 50%, in June the proportion of "free" loans fell to 20%. "The market continues to decline proposals unreasonably low-income loan programs are collectively called "interest free loans", which in today's environment is no longer just low-income, and even loss-making carriers. The current level of inflation and the situation on the financial market directly affect rates on credit programs. Therefore, we are now very closely monitored to ensure that the yield of all of our credit products covered risks and the increased price of money", - says Sergey Slunicko.Actually, the complaints of bankers over exaggerated. Because most of their proposed target "interest-free" loans are those actually are not. Their yield, typically, is provided through one-time and monthly fees, as well as other types of payments, eventually reaching 30-40% per annum. But in the current situation financiers are confident that this is not enough.Therefore, their portfolios they join, mainly due to the standard products, the cost of which (including commissions and fees) often reaches 70-100%. Slightly different is the situation with cash loans (non-earmarked loans, which are issued in cash). According to the company "Prostobank Consulting", throughout the spring rates on this type of loans has fallen by more than 10%. The average (effective) interest rate on cash loans for a year in June in the hryvnia fell to a 53,15% per annum, whereas at the beginning of March it was 63,42%. However, experts believe that in the near future the prices at cash loans will return to previous levels.Loans are not for the poorAlthough banks do not yet dare to raise rates on expensive loans, they find other ways to increase their earnings. For example, in the first month of summer, the financial institution began EN masse to enter one-time fee for the processing of loans, which on average range from 10 to 30 USD. According to analysts, the number of target loans, including such obligatory payment, today reaches 70% of the total number of such loans.In parallel, banks adjust the terms of the trust loans, reducing them from three to two years. "A lot of loans are issued for a period of 1-2 years. Longer unpopular," explains this step the head of the press center of the Bank Elena Yaik. However, financial experts do not hide that "circumcision" loans and partly due to the desire to cut some borrowers with low creditworthiness, thereby reducing the share of problem loans. "The target portfolio loans repaid much faster, so no need to keep long-term loans in the total portfolio.In addition, a longer term reduces the monthly payment, thereby lending to customers with low creditworthiness. Now it is not in the interests of the banks, as the level of arrears on these loans is increasing", - said the head of Department of retail business retail business of VAB Bank Anton Shaperenkov.Moreover, financial institutions still do not disdain to lend to citizens on the little things - the minimum amount for the target lending actually does not change, remaining at the level of 300-500 UAH the maximum varies in the range of 15-30 thousand UAH. However, giving more than hefty loans, bankers are not content with solely a passport and identification code of the borrower and may request a certificate of formal income or the presence of a guarantor. The only concession that decided financiers, - further increase in the number basaveshwar credits already reach 90% in the total number of targeted loans. "Ukrainian market of consumer loans can be considered overheated from the point of view of product supply.Most banks only sells promotional products is almost no overpayment to the client and without advance payment. Thus, the proportion of products with the advance is very small," - says Taras Stepan. As a rule, own payment only require when buying on credit expensive goods - furniture, LCD TVs, expensive mobile phones and computers, as well as products with a high risk of fraud, for example, mobile phones. Its size, depending on the product, amount and availability of information on income, can range from 10 to 30% of the loan amount.Even tighten credit conditions, bankers are confident that risk nothing. "The demand for targeted loans is quite stable. Therefore, while increasing the lending market will grow and the number of credits available," believes Elena Yaik. However, financial experts believe that in the short term, the townsfolk will begin to more actively use other types of small loans, giving preference card and cash loans.