The relative stability of the hryvnia and the reduction of the amount of deductions in reserves has led to the fact that the profits of Ukrainian banks in the first quarter of this year amounted to UAH 4.1 bn in the banking system (based on 90 working banks obtained a net loss of 1.3 billion UAH, and profit — UAH 5.4 billion). The population began to actively carry money in financial institutions for safekeeping, Deposit rates have decreased, banks have more money and they were generous to offer loans, especially able to bring a jar of quick and high profits.
Most revived consumer lending (cash loans and credit cards). In long-term loans to individuals (auto loan, mortgage) also marked progress, but with the results of such loans, banks are still cautious: the gradual decline in the share of problem loans in Bank portfolios has already begun, though the share of problem loans and the overdue debt is still high.
Experts of the banking market told Today how things are with the different types of loans and what to expect from the Ukrainians in the near future.
CREDIT CARDS AND CASH BANKS GIVE WITH CAUTION
Despite the fact that financial institutions actively promote lending, in fact consumer loans they issue with restraint, particularly when it comes to cash. “Out of the requested 200 thousand UAH, most likely, will approve of the half, and even at all refuse. To get this amount, you need to arrange a Bank over a set of parameters for matching amount (depends on the age, marital status, credit history, work experience, level of official salaries etc.). Get the “maximum speed” a few clients, and likely to get higher in those who have a Bank salary project”, — told in the call centre of FUIB.
For “zarplatnikov” and interest rates on cash loans are on average 4-5% lower than for other clients. In the same FUIB’s lending rate for corporate clients is 14%, and for private individuals — 19% per annum. Head of Department of Agency sales of consumer loans Ukrsotsbank Iryna Kozachuk added: today Ukrainians are quite leveraged and some banks may refuse the client if he already pays at the same time 2-3 credits. And qualify for the next loan he will be able, when you repay one of them.
To get a credit card easier, but the amount of the loan for her small — up to 50 thousand UAH. But still you will first need to earn the trust of the Bank, and then to win the battle for the amount on the credit card (usually starts from 7-10 thousand).
RATES. As for annual interest rates on cash loans, but commercial banks are willing to give up to 30-50 thousand UAH for 15-25% per annum. More than 50-100 thousand UAH — the rate may be higher, 35-40%, as the banks lay their risk.
“The issuance of consumer loans continues at the rates given the risks of defaults on these loans, and he’s still high”, — says Iryna Kozachuk.
With interest rates on credit cards the situation is different: the stakes there are even higher (reaching 50%), but gradually they decrease. Banks explain interest rates on deposits for individuals in UAH for five months of 2017 dropped to 14.4—16% (from 17.5—18%).
“Stabilization of the economy and lowering the cost of resources resulted in the adjustment of interest rates on all loans. Therefore, we expect the market growth to 2017 for all lending products”, — said the Deputy Chairman of the Board, Director of consumer lending UKRSIBBANK BNP Paribas Group Vladimir Radin.
FOR THE HONESTY. Soon, banks may feel a short-term cooling from potential borrowers due to the fact that from 10 June 2017 will come into force new amendments to the law of Ukraine “On consumer credit”. According to them, will be allowed to advertise 0% loans and loans without documentary evidence of the financial condition of the borrower. Also, banks are obliged to inform consumers about the effective, not nominal interest rate. Although some financial analysts don’t see a problem.
“The population does not look at rate, and how many then have to pay per month, and compares it with his s/n. In the extreme case, the client will warn that the rate not scared, and will explain what will be the monthly payment,” — says chief financial analyst of RA “Expert-Rating” Vitaly Shapran.
IN CAR LOANS THE FIGURES ARE
The autocredits in Ukraine now issued just over a dozen banks under considerable 18-26% per annum and with a significant initial contribution — 30-50% of the cost. But, as assure of financial institutions, the Ukrainians still call and actively interested in the loans. “The market has formed a pent-up demand for the purchase/update of the car. And now he gradually begins to unfold,” the Bank’s call center “Globus”.
However, after consultation with Bank specialists take a loan is not all, since the requirements are hard, and the borrower check “to the seventh generation”. Individual banks to make life easier for the borrower, try to develop a special partnership programs with car dealers and car dealers: these companies give per month even at 100 credits to buy cars.
But in General, as explained in banks, they will return to the loan market, when there will be more reliable customers who are ready to take these loans, and more importantly — time to give. Indeed, in recent years with such clients, the banks had problems.
“Two years ago, during the last crisis, when everything was unstable, and people simply did not know what to expect from tomorrow, customers on auto loans was not. And if consumers took out loans, it is likely due to lack of funds — borrowed money to pay or for some urgent needs. Very rarely people decide on loans, which could be viewed as an investment: buy a car or apartment, make repairs, improve the energy efficiency of their homes. Today, these clients appear. And as a response to their appearance and demand the banks begin to actively develop various programs and proposals,” explains a member of the Board of JSC “OTP Bank” Vladimir the Wise.
According to bankers, is an important condition for the resumption of lending in full is the growing or returning confidence in banks and the system as a whole, is insignificant, but GDP growth and the strengthening of the economic situation. The process of “becoming the customer” and the process of renewal of confidence of the banks closely linked, and now the financial institutions are only at the beginning of both processes.
“To offer the client a suitable loan product, we are constantly looking for opportunities — both within the Bank and with partners. The latter, incidentally, is often the most profitable. For example, we offer a loan on a car famous brands with a flexible system of interest rates from 0.01% no additional fees. Now active negotiations are under way with other dealers,” — says Vladimir Wise.
But if lending programs, and will be more, rates will not touch it: all of our speakers have noted that in the near future a total collapse of interest rates on loans can be expected.
Car loans. Several banks already this year, renew loans to buy a car
BORROWERS LOVE IT WHEN THERE IS A RETURN
To encourage customers to take out loans that banks actively promote to them the credit of “buns”. In one form or another they have almost every kind of lending. Cards are the most common remuneration — contributions to the bonus account in some affiliate points of sale (pharmacies, shopping centers/networks, petrol stations, etc.) with the subsequent possibility to use earned. Also practiced all sorts of jokes expensive gifts for customers who move a credit card for a certain amount in a certain period.
“I kind of bonuses pleasant and comfortable. I calculated with a credit card, get money to the bonus account and the credit card overpayment do not allow — or repay it immediately, or during the grace period in which no interest is accrued. Sometimes when you have relatives to buy medicines for them specifically to go to the pharmacy to credit card to pay. Earned a couple of hundred hryvnia per month to spend on myself and treats for those who bought something” — from Kiev says Maria Potapova.
IN THE APPENDAGE OR SURPRISE. Long-term loans (mortgages, auto loans) also offer attractive terms, but as a rule, to accomplish anything, less, except in those cases where promises something for the mere fact of registration of the loan. Most often it is temporarily reduced annual interest rate and a raffle among those customers who apply for a loan within the Bank is a promotional month (it can be travel, discount store, etc.).
“I have not yet won such shares at any time, but the drawings definitely participate,” said Nellie reshetylivs’ke from Odessa.
Gifts. Stimulate demand and pleasant for those who spends money
HOUSING: RATES “BITE”
More than 400 thousand Ukrainian families, according to the state statistics service, have to rent housing. After all, save for his feet, even with an average salary difficult, not to mention the fact, if it is lower. It would seem that for many, the release of the mortgage, but today to take the money can not less than 20-26%, and these loans offer only a few banks.
Offer installments and developers: their interest is lower, around 10% per annum, but they give the money to a limited number of years — often before putting the house, which is unacceptable for most Ukrainians. Banks in this plan is more profitable for the people they give mortgages for up to 20 years.
But the demands of customers is very hard: you need to have stable and high earnings, the opportunity to provide cars or existing housing as collateral, etc.
“Loan to purchase real estate with the provision of it to the mortgage the minimum down payment of 30% (subject to the provision of additional security may be reduced to 10%).
The interest rate is fixed for the entire term of the loan and is up to date from 22% per annum, for payroll clients — 0.5% lower, and 21 per cent for borrowers, which are credited in the framework of its partnership with the developer. We also offer mortgage loans for internally displaced persons with more loyal conditions: rate is 20% per annum, the maximum term of the loan up to 30 years, advance payment — from 10%,” — says Director of retail business Department of “Oschadbank” Valery Malakhov.
In principle, approximately in such conditions and with such rates, all banks operating, which gives a mortgage — because the risks that the situation in the country deteriorates and borrowing will cease to return at their explanations, still very high. “These risks have to lay in the cost of lending,” — confirmed by the Institute of financial controlling KNEU.
FOR THE FUTURE. On the annual rates bankers optimistic. “The beginning of 2017 was accompanied by a decrease in interest rates on the market, and in our opinion, this trend will continue throughout the year. Accordingly, due to the price drop, the expected influx of new customers, and further recovery in the lending market. Until the end of the year, according to our estimates, the decline in rates from 2 to 4%, depending on inflation and macroeconomic stability,” — said Valery Malakhov.
On the mortgage. Expect lower rates and a revival in demand
