OREANDA-NEWS. January 24, 2011. VAB Bank issued UAH 18 m worth of motor loans during the second half of 2010, with the fourth quarter seeing twice as many deals as Q3, reported the press-centre of VAB Bank.

“The market upsurge was owing to both gradual recovery of the demand and introduction of new players typically followed by borrower-friendly offers from lending banks.  Terms offered within partnership programmes are particularly loyal: they include a below-market advance payment and a 1.5 year retirement holiday.  This is why we have focused our motor lending promotion programme primarily on developing a product line in coordination with motor dealerships,” VAB deputy chairman, director of retail banking Mr. Tsvetan Petrinin said.

Presently, VAB Bank offers special products under partnership programmes with such motor dealerships as NIKO-Ukraine, Autograd, Nicole Motors, and Ilta.

“These offerings incorporate a potential borrower’s application instant assessment mechanism.  During this year, this option is going to become standard for all our motor lending programmes,” Mr. Petrinin explained.

Also, towards the end of 2010 the Bank was able to reduce to 17% the threshold rate for motor loans owing to the accumulated portfolio of cheaper funds.  Meanwhile, lending timeframe remained unchanged: loans are offered for up to 6 years.

“In general, the development of partnerships with motor dealerships has created a highly competitive borrowing environment in today’s market.  We forecast that this sales channel will be the one to rely on for the biggest share of motor lending in 2011,” Mr. Petrinin believes.