OREANDA-NEWS. October 03, 2014. Sviaz-Bank (Vnesheconombank Group) and the International Analytics Unlimited Bank Club have held a round table to discuss trends in the growth of the auto loans market in Russia and the Bank’s relevant initiatives in the auto loan business segment.

“The growth rates in the Russian auto loans market have slowed down in 2014, having fallen to a low 5% in the second quarter of this year, as recorded by statistics, down from 20% registered on the same reporting date in 2013. In June 2014, the portfolio of auto loans made in Moscow and region had grown to 4.8 billion rubles from year beginning, and to 1 billion rubles in Leningrad Region. Interest rates charged on loans had leapt,” said Sergey Zemelkin, commercial director and cofounder of the Frank Research Group. “Car dealers have kept offering various discounts to potential buyers every month of this year, in an effort to get them walk in and drive out,” said Mikhail Drokin, office director for relations with financial institutions, Department of Relations with Partners, UralSib Insurance Group, echoed Zemelkin.

According to Sergey Zemelkin, growth had only been registered in the premium segment of the market, and the used car segment is helping to keep up the loan portfolio in the stagnating market. With reference to figures released by PricewaterhouseCoopers, though, the speaker predicted a second wind the market is to get in 2015 and 2016 to show a 3% to 6% rebound, further to pick up to 7% in 2020. Alexei Bakhayev, Director of Sviaz-Bank’s Retail Business Development Department, believes that growth in lending on the car market will be among other growth factors. Bakhayev announced a new auto loans program rolled out by Sviaz-Bank that differs from other similar market offers in the loan repayment period now increased to seven years, affordable interest rates, and optional franchise insurance at 5% of the car price.

Alexei Bakhayev directed the audience’s attention to the special terms Sviaz-Bank was ready to offer to car dealers and insurance companies. The program is extremely flexible, and its terms can be attuned to the preferences of every partner as a way to expand mutually beneficial cooperation in the lending market and to offer the most liberal terms to the end user. “Many car dealers have been confronted with overstocking. Sviaz-Bank’s program will help them find buyers,” said Bakhayev.

Zemelkin spoke about Sviaz-Bank’s breakthroughs in the auto loans market: “At a time when many major players have withdrawn into the shadows, posting negative growth rates, Sviaz-Bank’s loan portfolio continues to swell.” “We are planning to register a two- to threefold growth in 2015 from what we have achieved to date,” Bakhayev ended on an optimistic note.

The round table was attended by representatives of leading insurers and car dealership companies.