Rosbank said on Tuesday that it has joined a Russian Federation program that subsidizes automobile loans.
Bank officials said that this is not the first time the bank has supported such programs.
"We have traditionally participated in car-loan-subsidizing state programs since 2009 and welcome the fact that car lending has received state support again," Andrey Sokolskiy, head of retail sales for Rosbank, said. "According to our experience, every third car loan in the bank and in the country as a whole is issued using the state program. Reduced rates on car loans will allow us to offer our clients favorable conditions for the purchase of new vehicles and will effectively support the car market of Russia in the current difficult economic conditions.
Under the program, car-loan rates will be reduced by approximately 67 percent off of the Bank of Russia's current key rate of 14 percent, as determined by the Central Bank of Russia, for a 9.33 percent rate discount. These loans can be used to buy vehicles for up to three years that cost $19,708 or less, with a down payment of at least 20 percent.