In Ukraine cash loans for 2-3 years are already gaining popularity, and in the near future they may replace classic car loans.
The return of the demand for mortgages will be possible after the rates on such loans have returned to the level of 20-21% per annum. This view was expressed by the director of retail business department of the Erste Bank Tetiana Nadtochiy.
The banker believes that such a reduction will take place after the Bank have stabilized the foreign exchange market – which is projected to occur automatically after the election – but in 2013.
Another change that a consumer credit market expects in the next year is a gradual replacement of car loans with cash loans. "In many European countries banks do not take clients’ cars as pledge, because they are bought for personal use. That’s why they often give cash credits for the purchase of cars" – says Nadtochiy.
In Ukraine cash loans for 2-3 years are already rising, and in the near future, they can may replace classic car loans on the market.