Uniastrum cuts rates for its corporate-focused U-Business Prime lending program

As of February 25, interest rates payable by new borrowers under the Bank’s U-Business Prime option are 13.5% APR for ruble loans, and 10% or 9% for credits issued in dollars or euros, respectively.

Accordingly, the rate for ruble-denominated loans has been downscaled 2.2%, while dollar and euro credit tariffs have been slashed 2.7% and 3.7%. The arrangement fee has also been trimmed, now standing at 1.5%. The decision to decrease rates charged on loans to large and midsized businesses is fully in line with the Uniastrum’s targeted policy to enhance the competitive appeal of its credit services, while also prompted by the current money-market downtrend in interest rates.

Meantime, all other U-Business Prime conditions remain the same. The minimum amount borrowable is Rb 20 mn and the loan can be used for any purpose, be it for enhancing day-to-day cash flows (repayable over 36 months with obligatory once-a-year payments) or for investment purposes (up to 5 years under a prearranged payment plan).

Borrower eligibility criteria are standard: two-year business experience and no negative credit history (long-term or repeated delinquency, judgment recovery). As for collateral, a U-Business Prime loan is securable with real estate. Also, not just corporate clients, but also sole proprietors are able to enjoy the benefits of the credit program.

Last year saw a 65% build in Uniastrum’s corporate lending portfolio. As of year-start 2010 the Bank’s LME portfolio weighed in at Rb 31.1 bn, while total FY09 credit issued to large and midsized businesses amounted to Rb 27.8 bn.

“This year we plan to ramp up our overall loan portfolio 30-40%, partially by increasing credits issued to the corporate segment,” says Margarita Demekhina, Director of Uniastrum’s Corporate Lending Division. We are also committed to enhancing the quality of the portfolio. With this in mind, in 2010 our satellite offices will feature special business centers catering exclusively to corporate clientele.”

For more information call or write Olga Kurganova:

744 04 04, ext. 1066

kurganova@uniastrum.com

www.uniastrum.ru