The first interest-free loans have been awarded

October 20, 2003 / Banking

Clients save more than Ls 20,000

The "Aizkraukles Banka" bank (AB) recently held a lottery in honour of its 10th anniversary, and the four winners of the lottery received interest-free loans. The winners were Inese Grante, Dzons Delgalvis, Andrejs Japinš and Tatjana Trofimenko. During the course of the process, 130 mortgage loans were issued, totalling Ls 2,052,925. The repayment period for the loans ranges from 14 months to 10 years. The winners of the lottery will save more than Ls 20,000 because they won’t have to pay interest on the loans.

Other interest-free loans will also be offered

This was only the first lottery for interest-free loans. The second will be held on December 12, and among the people who conclude loan agreements between September 10 and December 10, six will receive interest-free loans.

In order to ensure the transparency of the lottery’s results, each participant signs a document in advance which states that he or she agrees that AB can publish information about those clients who are winners in the lottery. Interest-free loans are available and will be available to private individuals who have received mortgage loans to purchase, renovate or build housing or to refinance mortgage loans from other banks.

The bank specialises in mortgage loans

The bank decided to organise the lottery as part of its strategic development plan. Gradually AB will become a specialised mortgage bank. Already AB offers some of the most advantageous mortgage loans in Latvia. Clients can borrow up to 80% of the value of the relevant real estate with a repayment schedule of up to 20 years and annual interest rates which begin at just 4.7%.

Low interest rates

"Quite often the reason why people do not take out loans which would help them to improve their quality of life is not based on the sum that is to be borrowed, but rather on the interest rates that have to be paid. Our programme allows people to gain material benefits and to learn additional information about the advantages of mortgage loans," says the deputy director of the bank’s Client Services Department, Aivars Rauska. Additional information can be found on the Internet at www.ab.lv.

The volume of loans has increased by nearly 70%

Between the beginning of the new programme and October 15, AB increased its loan portfolio by Ls 3,818,469, to a total sum of Ls 56,596,223 — a 35% increase since the end of last year. The total sum of mortgage loans that have been issued by AB reached Ls 18,439,124 at the end of September, which is an increase of 69.2% just this year. At the end of August, AB was Latvia’s 6th largest commercial bank in terms of assets.

More information: Aivars Rauska,
deputy director, Client Services Department