OREANDA-NEWS. September 3, 2010. Uniastrum kicked off its new auto finance initiative Uni SPG in Saint Petersburg and the Leningrad region on June 1, 2010. Since then the lender’s Saint-Petersburg branch reports that auto loans have more than doubled. As of August 1, 2010, 342 auto credits were issued to a total value of Rb 218.5 mn. Uniastrum’s Saint Petersburg arm has more than tripled its auto lending portfolio YTD, tipping the scales at Rb 370.9 mn as of August 1, 2010.

Under the Uni SPG scheme, borrowers can take out an auto loan at competitive interest rates starting at just 9.9% APR, and the same time receive a U-Cross Auto VISA card with a spending limit equal to 10% of the vehicle of their choice.

A Uni SPG auto loan can be used to buy a new or second-hand vehicle and is repayable over a 5-year period. Minimum down payment is 25% of the automobile price, while the loans themselves range from Rb 50,000 to Rb 4 mn. Also, installment plans are flexible, with Uni SPG borrowers entitle to make early payment, either partly or in full, at no extra charge. The arrangement fee costs Rb 7,000 if paid in cash at one of Uniastrum’s banking centers or Rb 5,000 in cases where the customer opts to use his or her U-Cross Auto VISA card. Anyone applying for a Uni SPG credit card simply needs to bring along their Russian passport as proof of identity. There are no card administration costs.

The U-Cross Auto VISA card can be used for virtually any purpose, including repair and maintenance services and taking out a new insurance policy. A conspicuous advantage is that it entitles holders to discounts and bonuses when paying for services provided by Uniastrum partner companies. Moreover, the number of partners continues to grow. The Bank is currently in talks with dealerships, retail gas stations, tour agents and food producers with a view to their offering discounts to U-Cross Auto VISA cardholders.

“The Uni SPG loan program has been specially designed to take account of our clients’ real needs,” says Anna Golikova, Deputy Director of Uniastrum’s Auto Lending Division. “Buying a car on credit often means that people have to rethink the way they distribute their earnings. The credit card that borrowers receive at no extra charge under the Uni SPG scheme makes servicing their auto loans more straightforward and reorganizing their outlays so much easier. That our customers readily understand the benefits of our auto finance program can be seen in the steady uptrend in the number of loans being taken out.”