Aizkraukles Banka Offers Down Payment Loan

August 10, 2005 / Banking

Aizkraukles Banka has announced a new credit line — the down payment loan. People can take out a loan of up to 10% of the value of the home that they are buying so that they can make the down payment. This is a loan that is perfect for people who have not saved up their money.

In response to demand in the marketplace, Aizkraukles Banka is offering a new credit line to its customers — the down payment loan. The loans are meant for people who don’t have the money to make their down payment on a flat in a newly built apartment building.

Clients of the bank can already receive a loan of up to 10% of the value of the new home. This allows the client to pay most or all of the sum that is demanded by the owner of the building. Once the person moves into the home, he can receive a mortgage loan on particularly easy terms.

The down payment loan does not require collateral. The client simply presents the contract that he has signed to purchase the apartment.

«This is a programme for those who haven’t saved up their money but are prepared to make loan payments. This allows clients to reserve a flat even while the building is still being put up. Once they move in, they just pay back their mortgage loan, with the monthly payment not changing very much at all,» explains Aizkraukles Banka board member Pavels Snejersons.

Aizkraukles Banka — Your Local Bank

Aizkraukles Banka is wholly owned by Latvians, and it operates in Latvia and abroad, offering a wide range of financial services to its clients. The bank has paid equity capital of LVL 15 million, with 100,000 shares. The bank has 121 shareholders, including 99 individuals and 22 companies. The main shareholders are Olegs Fils with 46.44% of shares and Ernests and Nika Bernis, also with 46.44% of shares.