Russia’s ALFA BANK has increased the number of its products and revised terms of credits. The minimum downpayment has been cut to 10% of the cost of apartments under the mortgage program for purchasing apartments on the secondary market. The loan is provided for five to ten years. Interest rates are set at 11.9% and more in US dollars and from 13.5% in roubles. If the credit debt balance reaches 80%, the interest rates are to be reduced to 9.7% and 11.7%, respectively, similar to the terms for credits provided with 20% downpayment.
Furthermore, ALFA BANK has offered clients a new product — the credit with existing apartments served as collateral. The loan may be used to build or repair apartments or detached houses, repay the credit provided for building or repairing other apartments which are not used as collateral and buy new homes. The credit is provided for five to 15 years. Interest rates are set at 11% or more in US dollars and from 13.5% in roubles.
Source: BANKI.RU, October 30, 2006
