Банкеръ Weekly



United Bulgarian Bank (UBB) already offers the most long-term credit for purchase of cars. The bought vehicle is the only pledge for the loan. UBB finances up to 80% of the car's price, but the credit's ceiling is BGN50,000. The client should provide the remaining money himself. The procedure for approving the credit has been simplified. The applicant for the loan should present an official note from his employer and fill in a special application form, in which he gives detailed information about the incomes of each member of his family and about the ownership of movable and immovable property. The release of the credit is to be approved within five working days. The interest rate on a 5-year loan (the longest one - for 5 years) is 14 per cent. This means that for the purchase of Fiat Punto, for example, whose initial price is BGN18,666 лв., after deducting the importer's 10% discount, the applicant for the credit should provide BGN3,360 initially and pay BGN312.71 each month for a period of five years. The additional expenses for the client include payment of the Civil Liability and Auto Casko insurances to the State Insurance Institute (DZI), fees for stampring and assembly of an alarm system. UBB also charges BGN20 for preparing the documents for the loan and a single-time fee for servicing the credit, amounting to 2% of its size. The bank's requirement to the applicants for the credit is that the paying-off installment should not exceed 50% of the household's total incomes. Moreover, not less than 1.5 minimum monthly salary (i.e. BGN150 as per the minimum BGN100 wage, set on October 1, 2001) should remain for each member of the familiy after paying off the installment.UBB is still holding negotiating with car importers and has signed agreements with two of them - TM Auto and Auto Italy.

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