News of the Bank

Vladimir Borovik, head of department on individuals’ crediting on cars purchase of PRAVEX-BANK, about tendency of car loan market in Ukraine

In 2008 one can wait continuation of quick increase of demand on cars purchase, which is observed during current year.

Proportionally to increase of volume of cars sale at the market there was increased demand on car loans, besides PRAVEX-BANK's share at this market constantly grows. Thus for September and October of 2007 in PRAVEX-BANK there were issued credits more than in 2,5 times of analogous period of 2006.

It can be noted, that, as in 2006, credits for purchase of DAEWOO, CHEVROLET, VAZ marks have the highest demand.

If speak about the range of getting cars in credit, the highest demand has cars at the cost to USD 20 thousand. Besides increase of purchase power of population and attractive crediting programs, constantly offered by banks at this market segment, leads to gradual demand increase on the more expensive cars.

«At the moment there is tendency of constant interest rates decrease at car loan market, which concerns interest rates in foreign as well as in national currency.  

Thus, in 2007 in comparison with 2006, average interest rate at car loan market in USD decreased from 12,3% by 11,7%. As for conditions for "car loan" issue, the most popular will be credits in foreign currency (the most called-for credits in USD), with zero initial payment and maximal crediting term — by 7 years. Besides it is constantly ascending demand on credits in national currency due to that fact that some banks recently lowered considerably interest rates on such credits» — comments situation at car loan market Vladimir BOROVIK, head of department on individuals' crediting on purchase of cars of Pravex-bank.

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