OREANDA-NEWS. July 07, 2011. Ukio bankas, taking into account more stable economic situation of the residents and assessing situation in labour market has proposed new safer means of borrowing. From July Ukio bankas will grant consumer loans supplemented with job loss insurance, reported the press-centre of Ukio bankas.

Job loss insurance for Ukio bankas clients taking consumer loans will be provided by the company PZU Lietuva.

„Some months ago after significant reduction of interest on consumer loans the number of clients willing to borrow increased. We noticed that a significant part of people are restrained from loans by fear of longer term financial liabilities as they still have doubts concerning stability of income. To overcome this obstacle we suggest additional possibility – job loss insurance that will provide more security in case the client loses its job unexpectedly”, - said Justas Babarskas, Head of Commerce Unit of Ukio bankas.

Head of Ukio bankas Commerce Unit emphasized, that consumer loan indices of the bank represented by him have recently been regularly growing. Number of clients having taken consumer loans at Ukio bankas have increased 10 times within the first half of the year, unlike at the other banks, and portfolio of new consumer loans agreements increased 7.5 times comparing with the same period last year.

Firstly, J.Babarskas relates this rapid growth of consumer loan portfolio with lower interest on consumer loans. This spring Ukio bankas significantly decreased interest rate for consumer loans and now it is possible to borrow at Ukio bankas for 7 percent in euro and 9 percent in litas. The best terms of interest are granted to loyal clients of Ukio bankas.

In addition, J.Babarskas drew attention to the fact that residents’ portfolio of outstanding debts started to decrease within the previous months. It witnesses that results of recovery of economics are felt not only by business companies but by residents as well.

„Residents come back to borrow from banks – they get more favourable terms, higher security and stability. We are interested to ensure the most flexible terms to our client, taking care of its possibilities to repay the loan. Thus, our new offer ensures that insurance company will cover our client’s, who has a consumer loan but losses a job, premiums for half a year –– it is estimated, that within this period, a person can find another job and continue repayment of the loan in a stable manner. We hope, that our proposal will reduce number of people who want to improve their life quality but do not dare to borrow“, - says J.Babarskas.

According to him, in the Lithuanian market with quite high unemployment rate, additional guaranties will ensure secure financing solutions for the people and will encourage to take consumer loans with no bigger doubts.