OREANDA-NEWS. November 17, 2009. Lending rates on the Bank’s U-Money option are to be scaled down 4 percent, reported the press-centre of Uniastrum Bank.

As of now, the interest charged on a retail loan is 24.9% APR, compared with the 28.9% payable on credits secured prior to November 3, 2009. Also, for personal loans issued as part of corporate initiatives lending rates have been reduced from 26.9% APR to 22.9%. Meantime, the arrangement fee is 2.9% of the principal amount. The lower fees, which come on the back of a change in the refinancing rate and a perceptible uptrend in the Bank’s business volumes, afford Uniastrum a conspicuous advantage over market rivals.

U-Money is a general-purpose loan for immediate needs and can be accessed without having to provide details of what the money will be used for. Ranging between Rb 50,000 and Rb 900,000, a U-Money loan is repayable in 6-60 months. Borrowers can opt for early settlement without incurring any extra fees. Once submitted, a loan application can be processed within 5 days or less. Credits of up to Rb 150,000 require no guarantors. A particularly attractive feature of the U-Money scheme is its simplicity: the money is transferred to a plastic payment card issued at no extra charge that allows cardholders not only to take out cash at an ATM or a POS terminal at any Uniastrum branch, but also to pay for goods and services, which, needless to say, is far safer and more reliable.

Uniastrum Bank is a Principal Member of the VISA international payment system, and an affiliate member of the MasterCard payment system. As of October 1, 2000, the lender issued over 665,000 cards, some 300,000 of which were given out under payroll card programs, another 50,000 being credit cards. Around 3,200 agreements were signed with organizations to launch payroll card schemes, and around 1,300 terminals installed at sales and service outlets. The total card lending limit as of October 1, 2009 exceeded Rb 3 bn, while the number of ATMs integrated into United Settlement System topped 5,000. 51% of all Uniastrum’s plastic cards are issued in the regions, the regions/Moscow loan portfolio standing at 66/34%. As of October 1, 2009 the Bank’s plastic cardholder portfolio totaled Rb 1.4 bn, and total personal loans in excess of Rb 1.5 bn.

“Uniastrum Bank reacts immediately to changes in the market environment. Our products always were and remain up-to-date and highly competitive,” says Oleg Shvetsov, Deputy Chairman of Uniastrum’s Management Board. “We are constantly upgrading are customer services and improving the terms and conditions applicable to our products in order to maximize client satisfaction and benefits. To this same end, there is every chance that we’ll be slashing card administration fees before too long.”