To support the demand for vehicles of the domestic auto industry, the Russian government has developed a federal program – a car loan with state support. The project was launched in 2009, then it was temporarily suspended, but has now been extended. However, it is worth noting that so far about 5 billion rubles have been allocated for the task, whereas in 2015 the program took 30 billion rubles. This means that not everyone will be able to take advantage of state support if additional funds are no longer available.
State support: what is it and what is the essence of the program
A car loan with state support is a loan to buy a car of domestic assembly with low requirements for financial payments.
The essence of state support is to repay part of the interest on lending at the expense of budget funds. The amount of the “discount” is 2/3 of the refinancing rate of the Central Bank of the Russian Federation, which is valid on the day the car loan is issued. Thus, the buyer will have to pay only the difference between the rate specified in the loan agreement and part of the state assistance. This is an average of 5–9% per annum – depending on banking conditions.
This program was developed and launched to support the demand for vehicles manufactured at Russian car factories. The Russian government has developed preferential car loans with state support in 2009, and to date it is the main measure to ensure the demand for the domestic auto industry.
For the entire duration of the program, considerable funds were allocated from the budget for its implementation. This method of support brought good results: the number of car enthusiasts who want to buy a new car assembled in Russia has increased significantly. The economic situation in Russia, as in the world as a whole, forced the government to extend the program. Moreover, in the current year, the list of cars (their brands and models) that are covered by a car loan when subsidized by the state has been expanded. Consider the issue of such lending in more detail.
Conditions for obtaining a car loan with state subsidies
According to the federal project on auto loans, in the current year banks, including Bank, put forward the following loan terms:
- Preferential car loans with state support are intended only for citizens of the Russian Federation and are issued in rubles.
- The maximum cost of the purchased machine is 1 million rubles.
- Maximum vehicle weight is 3.5 tons.
- The age of the car should not exceed 12 months.
- The maximum loan repayment period is 36 months.
- The minimum down payment is 20% of the total cost of transport.
- The car must go off the assembly line of Russian factories.
- The car does not apply to used before.
Under the state car loan scheme, a large number of banks operate. However, you should know that the guarantee of solvency of the borrower is the purchased car, which is the subject of a pledge. Although the benefits of the program from 2016 include an optional Casco, the type of insurance depends on the requirements of the bank.
The basic conditions of banks on the state loan are the same, however, additional requirements may vary. Differences in lending provided by different banks may be as follows:
- interest rate according to the loan agreement;
- minimum loan repayment period;
- minimum loan amount;
- requirements for the period of work and wages in current work;
- availability of registration at the place of application for a preferential car loan.
These requirements are fully dependent on the bank and their availability must be clarified on the spot.
Vehicle models that are subject to state car loans in 2017.
As already mentioned, the effect of state support for car loans is provided only for new vehicles produced in Russia and weighing less than 3.5 tons.
It is worth recalling that the choice of the car depends on its value, which should not be higher than 1 million rubles. Although, if we take into account that the majority of Russian car enthusiasts prefer Lada models, then you can easily fall under a similar lending program with government subsidies.
Who can participate in the state program
The main requirements of the bank to potential buyers are the presence of citizenship of the Russian Federation and compliance with the age category of 21-65 years. To provide a car loan on preferential terms, the buyer must present a Russian passport and another identity document, such as a driver’s license.
To confirm the solvency of the banks, which include Bank, may require a certificate of wages and taxes withheld for the last 3 months from work. Experience at the current place of work must be at least 1 year. To confirm the data should provide a copy of the workbook and the contract, certified by the employer.
You should be aware that such loans on preferential terms are not issued to buyers with a bad credit history, as well as to women with children who are not six months old.
State loan banks
The federal program of preferential car loans has created tough conditions for financial organizations, which did not work out for everyone. The main requirements of the state to banks – the authorized capital is above 70 billion rubles, as well as the presence of a 50% stake in a financial institution in state administration. In the future, the list of banks was expanded to mitigate conditions and today it includes more than 90 financial organizations. Each of these financial institutions has its own advantages. For example, Bank allows early repayment of a loan without any fines, and UniCredit has the lowest interest rates. Under the conditions offered by Bank, early or partial repayment of the car loan is possible only if there is a written statement from the borrower.
Prospects for preferential car loans
Russian car manufacturers were forced to switch to a uniform sale of products in order to avoid a glut in the car market. But due to the reduction in loan rates due to government support, the demand for vehicles does not fall.
However, further subsidy projections are not so favorable. The fact is that the percentage of non-repayment of auto loans, the current economic situation, as well as the goals of the program that have already been achieved, suggest that the amount of subsidies will decrease in the future. But supporters of the program argue that in the background of the crisis in the country it would be inappropriate to reduce sales of domestic cars, because the demand for them could drop significantly without such state support.
During the time of the car loan program with state support, a large number of people in the country were able to buy the desired transport. Car loans under the state program significantly helps the consumer in the purchase, and the manufacturer in making a profit. The buyer can only make a choice among the variety of models of cars and banks that provide preferential loans.