OREANDA-NEWS. September 01, 2011. The Bank’s cut-price auto finance initiative for borrowers shopping for new or secondhand cars is now available throughout all 48 regions where the lender maintains a presence, reported the press-centre of Uniastrum.

Since year-start 2011 Uniastrum Bank has issued more than Rb 1.5 bn in auto credits. Meantime, its pilot U-Drive lending program has yielded impressive results. As well as offering competitive interest rates starting at just 9.5% and 11.9% APR on loans for new and used vehicles, respectively, the scheme provides borrowers with a card with a credit limit equal to 10% of the principal amount. Crucially, use of the card carries no administration fee.

By taking advantage of Uniastrum’s new auto deal, customers can take out loans ranging from Rb 50,000 to Rb 3 mn, repayable over 5 years. Interest rates depend on the size of the down payment and the loan period. The minimum down payment is 15% of the automobile price. Secondhand vehicles must be no older than 9 years by the time the loan is paid off.

Notable benefits of the program include a no-fuss application and administration process, no need for guarantors, minimal supporting documentation, and a no-fee early settlement option. Once the Bank receives all the necessary documents, the loan decision is taken in a single business day. For more details of Uniastrum’s auto initiative and to apply online, visit http://www.uniastrum.ru/personal/crediting/auto/.

“The pilot launch of our new car finance program has yielded highly encouraging results,” notes Vasily Kuznetsov, Deputy Chairman of the Uniastrum Management Board. “We see no reason why, in view of its conspicuous benefits and easy terms, this new product should not prove equally popular network-wide.”

* With a loan term of up to 5 years, maximum interest rates on the U-Drive New program are 14% APR (15-25% down payment of 15-25%), 13.9% APR (25-40% down payment) 12.5% APR (40-60% down payment), and 10.95 APR (over 60% down payment). With a loan term of up to 5 years, maximum interest rates on the U-Drive Old program are 16.9% APR (15-25% down payment), 15.9% APR (25-40% down payment), 14.5% APR (40-60% down payment), and 12.9% APR (over 60% down payment). The flat fee charged for cash payment is Rb 7, 000, or Rb 5,000 if payment is made using a U-Cross Auto card. Car insurance is mandatory for the entire loan term. Borrowers may be over 60 years old at the time the credit is issued but not over 65 years by the final payment date, and provided that he/she has taken out a mandatory life insurance policy with an insurance sum no less than the loan principal plus interest for the entire loan period. Insurance must be taken out with a company meeting the requirements of Uniastrum Bank in respect of insurance organizations. The amount spent by the customer is dependent on the price of the services of the respective insurance organization. Violation of the insurance conditions carries a penalty of Rb 5,000. In the event of a default, a penalty of Rb 1,500 is payable. Late VCT submission carries a penalty of Rb 5,000. If the age of the vehicle purchased under the U-Drive Old program is more than 4 years at the time the credit is issued, the minimum down payment is increased 5%.