OREANDA-NEWS. February 27, 2010. In 2009 Uniastrum Bank gave out over 6,500 loans, expanding its overall lending portfolio more than 16% and upsizing its auto credit portfolio to Rb 6.8 bn as of year-start 2010.

In the view of Uniastrum analysts, 2009 was an uphill struggle for autolenders in general, with the Russian auto loan market contracting around 5-fold year-on-year in monetary terms. H209 saw banks get back on track with smoother credit and more relaxed borrower eligibility criteria, prompting stiffer competition between banks.

Even so, Uniastrum Bank turned out to be among Russia’s biggest autolenders in H109, jumping 10 places from 17th to 7th position, according to data released by agency RosBusinessConsulting. Accordingly, Unaistrum now commands 3% of the Russian auto finance market.

Over 2009 loans disbursed for new automobile purchases accounted for 76% of total auto credits. In the same period Uniastrum clients took out loans to buy more than 6,000 foreign cars, which accounted for 93%.

84% of all the Bank’s auto loans are issued to borrowers living in Russia’s regions. After Moscow, the cities keenest to take advantage of Uniastrum’s auto credit products in 2009 were Krasnodar (7.43% of total car loans), Nizhny Novgorod (5.37%), and Chelyabinsk (5.97%). By year-end 2010 it is projected that the share of credit sales in Moscow and Saint Petersburg will climb to 30% and 10%, respectively, with a greater proportion of sales falling to cities such as Yekaterinburg, Rostov-on-Don, Samara, Kazan, and Ufa.

Experts expect the automotive market to languish in the doldrums in 2010, with the result that today many banks are continuing to reduce borrowing rates and to sharpen the appeal of their credit products in a bid to win over the clients of rival lenders. As the year progresses, Uniastrum plans to launch a series of new programs in partnership with car manufacturers and major dealers, to push ahead with rolling out its main sale channel via official dealers and multi-brand holdings, and to play an active part in the government’s preferential lending scheme.

Uniastrum Bank offers its clients a wide choice of auto loan options that have been carefully crafted to suit borrowers’ different budgets and needs. Benefits and features include:

credit to buy a new or second-hand vehicle of Russian or foreign manufacture with no change in the lending rate;

flexible approach to proof of earnings: an official individual income tax statement or a signed form provided by the Bank – with no change in the lending rate;

earnings from a second job, leased property, bonuses and dividends can also qualify as additional income;

the earnings of spouses can also be factored into total income when calculating the maximum loan amount;

early loan settlement possible as early as the second day of the repayment period at no extra charge;

once submitted, a properly completed loan application is processed within a single business day;

free loan account management;

a period of 91 days in which to access the loan.

Lending rates are customer-friendly, beginning at 14% APR for ruble-denominated loans, depending on the option in question and credit terms and conditions.

“In 2010 we aim to more than double our sales and consideradly expand our portfolio,” says Maxim Matonov, head of Uniastrum’s Auto Lending Division. “Mindful of the rapidly changing situation on the auto loan market, we are now looking to enhance the appeal of the Bank’s credit products and are preparing to launch a number of new lending programs”.