By the end of the year, rates on all bank loan products are expected to decline by 3-5%

Until the end of December, there will be a reduction in rates on all bank loan products. Depending on the down payment, loan term and type of loan, the reduction will range from 3% to 5%.

This was reported by Elena Dmitrieva, First Deputy Chairman of the Board of GLOBUS BANK.

According to her, a significant reduction in the discount rate from 20% to 16% and its expected December correction by another 1-2 percentage points. – up to 14-15% – is a powerful impetus to reduce loan rates and develop partnership programs of banks with manufacturers and suppliers of certain goods.

According to the specialist, funds raised under credit programs have become “cheaper”, and then allow commercial banks to more actively develop various areas of lending, primarily mortgages, car loans, consumer lending and business lending (for the purchase of fixed business assets: a wide range of equipment, vehicles etc.).

She recalled that there has already been a reduction in mortgage rates for the purchase of housing in the primary market by 3% (depending on the down payment and the loan term, the loan payment will range from 7% to 19% per annum), rates on car loans by 2-3% ( depending on the down payment and loan term, the rate is up to 12% per annum), rates on consumer loans decreased by 2-3%, and rates on loans for the purchase of fixed assets for business decreased by 3%.

In addition to lowering rates, as the expert noted, favorable conditions have been created for the development of partnership programs with retailers, suppliers, manufacturers of certain goods, products and joint programs between banks and developers for the purchase of housing on the primary market. According to her forecast, in the first quarter of 2024, more than 60-70% of all approved bank loans will come from joint programs.

“Thanks to affiliate programs, the borrower receives more favorable loan terms: this is an additional guarantee of the quality of the purchased goods, a lower loan commission, quick loan processing (in the banking application, bank branch or from the selling company), more flexible installment terms, etc.” , the expert emphasized.

In her opinion, in December the main conditions of loan programs for the first quarter of 2024 will be formed. And depending on the type of loan, the overall growth in the number of bank loans issued from January to March 2024, compared to the same period of the current year, may increase by at least 15-20%.

She noted that in the future, 1.5-2 months, depending on the type of loan (taking into account additional conditions, such as the down payment on car loans and mortgages), the timing of its repayment, etc. lending rates may decrease by another 1-2%.

“Until mid-December, most banks will be preparing for the next changes, while developing qualitatively new credit and deposit programs in case the discount rate is reduced to 14-15%,” said Elena Dmitrieva.

Elena Dmitrieva also indicated 5 tips for borrowers who are planning to receive a bank loan in the near future:

  1. It is advisable to inquire what affiliate programs operate between the bank and the supplier, the seller of the required product. Affiliate programs provide a number of advantages for the buyer, such as a reduction in the commission for processing a loan or the ability to arrange installment plans on favorable terms for the borrower.
  2. The optimal down payment for the purchase of a home, car or household items is from 10% to 30% of the cost (the larger the down payment, the less the credit burden on the borrower).
  3. If you take out a mortgage loan to purchase housing on the primary market under the terms of partnership programs, the borrower receives an additional guarantee of the developer’s reliability and can count on more favorable loan rates.
  4. It is advisable to inquire about the amount of commissions and hidden payments (in reliable banks it should not exceed 2-3% of the loan amount).
  5. It is worth paying attention to whether the loan rate is fixed and not floating, which may complicate the timely repayment of the loan in the future.

“Economic progress, despite the war, will stimulate the development of bank lending: commercial banks create optimal credit conditions for all types of loans, such as mortgage programs for the purchase of housing on the primary market or loans for the purchase of fixed business assets. That is why in the near future time, the increase in the number of borrowers will be significant: from the second half of December, the most suitable time will come for potential clients to apply for the most profitable loan for them,” summed up Elena Dmitrieva.

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