OREANDA-NEWS. July 09, 2010. Uniastrum customers can use the U-Balance program as a convenient way to pay off outstanding credit card balances and special or general-purpose loans with other banks. Under the new program, credit is made available by way of an overdraft facility placed on the customer’s card account. Importantly, the preset overdraft limit can exceed the total refinancing amount. 

The U-Balance program features a one-month grace period during which no interest is charged on any credit used. Once this initial interest-free period ends, credits are charged at a rate of 19.9% APR for ruble-denominated loans, and 17.9% APR for loans issued in US dollars. The maximum borrowing limit is Rb 1 mn. Once submitted, an application for a U-Balance card is processed within business days. For greater customer convenience, repayment of the principal can be deferred for up to 6 months.

Uniastrum’s U-Balance option has been carefully designed to help cut monthly loan payments and to make credit available to retail clients without placing a strain on their budget. In order to qualify for a U-Balance card, applicants need to be in possession of a Russian passport and provide Uniastrum with a statement showing details of the outstanding balance on the loan of the issuing bank. Applicants are also required to have a positive credit history and no current debt arrears. Another condition is that the loan term agreed with other lender banks is no less than 3 months.

“The U-Balance lending initiative is one of its kind and has been specially put together by a team of specialists to take account of current customer requirements,” says Oleg Shvetsov, Acting Chairman of Uniastrum’s Management Board. “We are continuing to develop our card segment, which is one of Uniastrum’s strategic business lines.”