Credit loop expands – BBC

Sberbank decreased by 1.2 percentage points of interest rates on consumer loans to new borrowers. Previously, the reduction of interest rates, said a number of banks in the top ten. According to experts, despite the rather appreciable correction rates, the financiers will be difficult to attract customers for the long term. During the crisis, borrowers are afraid to take on major commitments.

Sberbank announced reduction of interest rates on consumer loans, applications for which will be submitted to the March 30, 2015. The average size of rate cuts will be 1-2 percentage points

In particular, the minimum rate for the ruble consumer loans without collateral will be 18.5% per annum (with software – 17.5%).

Earlier, in March 2015, Sberbank made more accessible their mortgages: within the framework of state support for mortgage rate was 11.9% per annum.

In February 2015, Sberbank has reduced to 2 percentage points rates on new loans to corporate customers. Meanwhile, as already stated, “Gazeta.ru” the press service of the Savings Bank,

interest rates on deposits until the fall will not be.

Last week cut interest rates by 3-4 percentage points Agricultural Bank already announced, “Revival”, VTB 24, MDM Bank and Bank of Moscow. The minimum interest rate in these credit institutions starts from 19.9%.

«In the near future in Rosbank plans to reduce interest rates on consumer and auto loans. Reduced rates on car loans will be 1 percentage points on consumer loans – from 1 to 3.5 percentage points, “- said” Gazeta.ru “deputy chairman of Rosbank Alexi Lacroix. According to him, the reduction of the key rate by the Central Bank reduces the cost of financial resources for the bank and, accordingly, to reduce the general level of interest rates.

Andrew Vallejo, senior analyst of “Capital”, believes that the decision of banks to reduce interest rates on loans is justified. But it’s still worth a start not only on the key rate of the Central Bank, but also from other important factors. And they are not very favorable.

«It seems to me that Sberbank went to such a move with the filing of the state. Other market participants will look at inflation, if it drops, then the rates will continue to fall, if not, then we can expect strengthening of capital outflows from the country “, – says the analyst.

According to the forecast of the Central Bank, for the quarter inflation rate reached 11.5%. Further, it will decrease, and its annual value of about 8%.

According to the analyst at Alfa Bank, Marina Karapetyan, expect mass correction rates on loans in the near future is not worth it. Each bank has its own problems: someone is willing to give expensive but high-quality loans, compromising the growth of the portfolio, while others, on the contrary, wants to build a portfolio. According to the forecast Karapetyan,

large peak in interest rates takes place and we will see them fall towards the end of the year.

The fact that the key rate by the end of the year may fall another 3.2 percentage points to 10.11%, says Anton Soroko, analyst “Finam”. According to him, interest rates on loans will also be reduced, but while maintaining a favorable market and political conditions.

The experts advise not to give in to excessive optimism.

«Banks have tightened the issuance of unemployment increases, the volume of lending is sharply reduced. In our opinion, the consumer credit portfolio this year will not grow “, – said Karapetyan.

According to the Joint Credit Bureau (EDB), the credit activity of Russians in February 2015 decreased almost doubled the number of loan applications fell by 51% compared to February 2014. The decline in demand is observed for all types of credit products. Hardest hit segment of the mortgage loans: demand for the year decreased by 72%, although over the past year, this segment showed a record growth. Also significantly affected segments of cash loans and credit cards: demand decreased by 55 and 42%, respectively.

«Borrowers are in no hurry to take out loans at high interest rates in the face of uncertainty, as banks seek only those who really need it. Also plays a role, and the situation of economic instability, where borrowers are afraid to take on major liabilities to banks, “- said Daniel Zelensky, CEO of EDB. According to him, the reduction of credit activity of the population and, as a result, reducing the rate of growth of banks’ portfolios in the long term can lead to a significant increase in arrears during the year. In February 2015, she had reached a value of 17.07%.