OREANDA-NEWS. March 04, 2010. New borrowers will be able to take out a loan under the Bank’s U-Super Prime program at rates starting from just 12% APR, or from 8.5% or 8% for dollar and Euro credits, respectively, reported the press-centre of Uniastrum.

Under the new lending initiative, ruble-denominated loan rates have been trimmed 1.7%, while dollar and Euro rates have been reduced by 2.2% and 2.7%, respectively. Meantime, Uniastrum has also downscaled the arrangement fee from 2.7% to 1.5%.

All other loan terms remain the same. The minimum amount that can be borrowed under the U-Super Prime option is Rb 30 mn or USD 1 mn (or the Euro equivalent). The money can be used for any purpose, be it for enhancing day-to-day cash flows (maximum loan term of 60 months with obligatory once-a-year payments) or for investment purposes (up to 10 years, with a prearranged payment plan).

The U-Super Prime program is proving increasingly popular among Russia’s business owners. Above all, it is aimed at big corporate borrowers who find themselves strapped for cash to cover day-to-day expenses or needing to refinance existing loans and other obligations. Without doubt, the most attractive feature of the scheme is its competitive interest rates, as well as the generous repayment period.

Borrower eligibility criteria are standard: two-year work experience and no negative credit history (long-term or repeated delinquency, no judgment recovery) within the past year. As for collateral, a U-Super Prime loan is secured with real estate (business or residential). While not just corporate clients but also unincorporated businesses are able to access a U-Super Prime loan, the program is targeted primarily at supporting community-focused companies, particularly local economic mainstays or firms with big headcounts, as well as enterprises with a strong social commitment.

There are three types of U-Super Prime loan available:

a single loan amount credited to the borrowers account

a revolving credit line (with a limit on the difference between drawdown amounts and loan payments)

a non-revolving credit line (with a limit on the total amount of funds advanced to the borrower).

“2009 saw a 65% build in Uniastrum’s corporate lending portfolio, taking it to Rb 35.7 bn as of year-start 2010,” notes Pavel Neumyvakin, Chairman of the Bank’s Management Board. “This year we aim to ramp up our overall loan portfolio 30-40%, mainly by increasing the amount of credit issued to companies operating in the real sector.”