VTB Bank canceled vehicle pledge loans

VTB Bank will provide unsecured loans for car purchase. This was reported by Forbes, citing an interview with Anatoly Pechatnikov, VTB Deputy Chairman.

     The press service of the bank also confirmed this information. The credit institution plans to transfer funds for the vehicle purchase either to the client’s account or to the car dealership. You can apply for a loan at a car dealership or car loan center. Bank representatives also said that it was not necessary to provide documents confirming the purchase. Such loans are necessary for citizens to buy used cars. The maximum loan amount is 500 thousand rubles. Perhaps over time, the amount will increase. Through the purchase of Casco insurance, the organization will lower the refinancing rate.

     In addition to VTB, unsecured loans for cars are issued by Renaissance Credit bank and OTP Bank. According to Yuri Belikov, Director of Validation at Expert RA, such loans are a prototype of consumer loans with an attempt to track the targeted distribution of funds. Yuri Gribanov, CEO of Frank RG, said that credit institutions are not interested in pledge, as it is sometimes difficult to collect from the borrower.

     The Tinkoff Bank press service said the company used the opportunity to levy pledge in almost 1% of practical activity. They clarified that the cost of registering a car in order to include it into deposit is the only drawback of this function. Therefore, the company will not abandon pledges. Sovcombank also doesn’t plan to cancel the unsecured car loans. Sergey Khotimsky, a co-owner of the bank, said that the credit load of citizens has been increased, and therefore the cancellation of pledges carries significant risks for a credit institution.