The FINANCIAL — If you need some financing for home appliances, renovations, furniture, clothing, travel or anything else, Bank Republic is now offering consumer loans for 13.95 percent with a loan period of up to 24 months.
36 month loans are available with an interest rate of 14.95 percent. The maximum loan amount without collateral is GEL 30,000, while with collateral it is GEL 50,000.
“Bank Republic is planning to increase its consumer loan portfolio significantly thanks to this campaign,” said Giorgi Samadashvili, Head of the Bank Products Development Department at Bank Republic. “In general, autumn is a very active period in terms of demand for consumer loans. We plan to increase our consumer loan production by at least 50 percent and as a result significantly raise the number of our customers.”
As part of the campaign, three different types of consumer loans are being offered by Bank Republic: the “Espresso” loan, “Comfort” loan and “Payroll” loan. The Payroll loan is designed for Bank Republic customers who get salaries on the accounts at the Bank. The Espresso and Comfort loans are designed for other banks’ customers; Comfort requires collateral, while Espresso does not. There are no other significant differences in the terms and conditions of these three loans.
“Collateral is real estate, as well as automobiles for smaller loan amounts. Salary, bonuses, as well as rent can be considered as income. We require only six month statements to verify the income. The terms are quite simple,” he explained.
“The new rates concern GEL loans because of demand on the market. In general, consumer loans are wanted in GEL therefore we focused on this currency. The minimum Payroll loan amount can be GEL 200,” Samadashvili explained.
Bank Republic predicts that average loan size will vary from GEL 3,000 up to GEL 4,000. Practice shows that this amount is most demanded for consumer loans. In summer this number grows slightly due to the active holiday period. The new campaign may increase it as well because the interest rate is quite low. Changes in average amounts won’t be significant, however, taking into account the median monthly salary on the market.
Generally speaking, interest rates on loans have been gradually decreasing in Georgia as of late.
“Our campaign is unprecedented as of yet,” Samadashvili claims. “Whether or not other banks start to offer loans with new interest rates, depends on their financial situation.”
Bank Republic is already working on new products for its customers. Similar campaigns may be offered next year as well, depending on the needs of the market.