IX Международная студенческая научная конференция Студенческий научный форум - 2017

The number of cars on our roads is increasing annually. Every year NK, more and more vehicles appear. About one third of the Russian population buys a car by means of bank borrowing that makes it possible to buy a necessary vehicle without long-term savings.

Car loan is a loan provided to individuals to buy a car and use it being collateral at the same time. One can buy a car for a loan in Russian Agricultural Bank Rosselkhozbank Inc. as well.

Rosselkhozbank Inc. offers loans to individuals for different purposes and becomes more and more active in this. Thus in 2016 there are 22 loan programs for individuals that can be issued at 1600 outlets across the country (Table 1). It should be noted that based on their terms some loans are classified as target subprograms. Loans Rosselkhozbank Inc. are aimed on the rural population, but they are actively executed for the urban population, too.

Table 1 Types of loans for individuals in Rosselkhozbank Inc.

№	Types of loans for individuals	Number of programs in 2016
1	Consumer loans	8
2	Auto loans	2
3	Mortgage	8
4	Loans for private farming developmen	4
In total		22

Let’s discuss such a loan for individuals as car loan. The undoubted advantage of car loan is an opportunity to become a vehicle owner without possessing the required amount of money to make a purchase. The only condition is the borrower’s solvency. Express loan for purchase enables you to become a car owner for a short time (in this case it is necessary to have the necessary documents). Long-term lending when borrowers can pay back the loan not at once but in parts is determined within the period from 1 to 5 years [1].

Based on car loan terms data provided on the official website of the bank, it can be noted that the main loan products to buy a vehicle in Rosselkhozbank Inc. are a loan program to buy a new car and a loan program to buy a used car (Table 2). The main advantages of a new car purchase loan is its interest rate (starting from 17.50%) and a small initial contribution (not less than 15%) [5].

Table 2 Terms of car loans in Rosselkhozbank Inc.

№	Individuals Loan Program	Loan currency	Maximum loan amount	Interest rate	Loan terms	Borrower’s age	Loan security
1	New car purchase loan	Russian Rubles	up to 3 000 000 rubles. (at least 15% of initial payment)	From 17,50%	up to 5 years	From 18 years old	purchased car collateral
2	Second-hand car purchase loan	Russian Ruble	up to 3 000 000 rubles. (25% contribution)	From 19,50 %	up to 5 л ет	From 18 years old	purchased car collateral
3	State-supported car purchase loans (valid until 31.12.2016)	Russian Ruble	up to 920 000 rubles. (20% contribution)	From 10,50%	up to 3 лет	From 18 years old	purchased car collateral

In addition to the two above mentioned major programs there is also a currently operating car loan program with state support by 10.50 %, that is for buying a new car at the reduced interest rate on specific loan terms. The program is valid until 31.12.2016 and in our opinion is the most attractive to potential clients of Rosselkhozbank Inc [4].

A positive aspect of car loans in Rosselkhozbank Inc. is also a fact that there is a system of discounts and bonuses to interest rates, which may increase or decrease the amount of payments.

Car loans in Russia are growing at a rapid pace being 35% per year on average. The growth of car loans will continue for the Russian market is far from saturation. Nowadays there are 200 vehicles per thousand people in Russia, while there are 400 cars per thousand people in Europe and 750 cars in the US [3].

Demand on car loans is explained by the fact that this product has an ideal combination of price, loan terms and minimal risks because cars are lended as collateral. In addition, the number of overdue loans in the portfolio of auto loans in Russian banks is lower as compared with other forms of retail lending. At the same time, the constant development of car loan risk assessment technology minimizes the risk of defaults. That is the very reason that contributes to the growth of car loans [2].

In this regard in the nearest future enhanced competition in the car loan market is expected. In our opinion, it will take place by means of the simplified borrowing procedure, improved quality of financial institutions and higher decision-making rate but not by reduced interest rates.

Therefore, we think that to remain competitive and attract new customers Rosselkhozbank Inc. must work in the following areas:

- development of partnership programs with car dealers;

- express loans, where a spontaneous demand operates;

- expanding the range of additional banking services being available during the loan;

- loyalty programs for regular customers of the bank;

- improved conditions within the proposed programs.

Thus, we can conclude that in terms of current realities car loans are a popular type of loans for individuals and to increase the number of new borrowers Rosselkhozbank Inc. it is necessary to work actively to improve the bank competitiveness.

Bibliography

1. Galliamova, T.R. Priorities to improve on-farm audit organization. Dostizheniia agrarnoi nauki [Achievements of Agricultural Science]. Ufa, Bashkir State Agrarian University Publ., 2014, pp. 184-190.

2. Galliamova, T.R.Tax control as a factor in the financial security of the state. V sbornike: Professiya bukhgaltera - vazhneyshiy instrument effektivnogo upravleniya sel'skokhozyaystvennym proizvodstvom sbornik nauchnykh trudov po materialam III Mezhdunarodnoy nauchno-prakticheskoy konferentsii, posvyashchennoy pamyati professora V.P. Petrova. [In the book: the accounting Profession is a vital tool for the efficient management of agricultural production, collection of scientific works on materials of the III International scientific-practical conference dedicated to the memory of Professor V. P. Petrov]. Ufa, Bashkir State Agrarian University Publ., 2015, pp. 25-29.

3. Galliamova, T.R. Standardization and methodological aspects of management audit in agricultural organizations. Monografiya: T. R. Galliamova [Monograph: T. R. Galliamova.]. Ufa, Bashkir State Agrarian University Publ., 2014, pp. 43.

4. Snezhkov V.I. Ways to increase commercial banks' competitiveness in the car loan market in the Rostov region. Inzhenernyi vestnik Dona [Engineering Bulletin of Don]. 2013, No. 4, pp. 23-26.

5. The official website of Rosselkhozbank Inc. [Electronic resource] available at:http://www.rshb.ru/ - 19.12.2016.

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