Car loans offered
by BLOM and Audi

For new cars at yearly seven percent flat over five years

BLOM Bank and Bank Audi have resumed providing car loans in fresh dollars at a flat interest rate of seven percent and a repayment period of up to five years. This means that the effective rate for a five-year loan is around 12.5 percent.

The loans are for new cars. A borrower’s salary must be in fresh dollars and should be domiciled in the lending bank. Applicants should not have lollar bank accounts.

The minimum down payment required by BLOM Bank is 30 percent of the cost of the car. It is 40 percent at Bank Audi. The maximum amount of the car loan is $50,000 at BLOM Bank.

The two banks are providing the new loans in a limited way and at a low profile to employees working in specific companies.

“BLOM Bank is providing the new lending in a limited and cautious way. Salary domiciliation for car loans was not mandatory before the crisis but it is now required as an extra precaution. Borrowers should also be employed in companies carefully selected by the bank which also studies the sector in which these businesses operate. This kind of borrowers has the best risk profile. The loan doesn’t target the self-employed,” said a senior executive at BLOM Bank.

BLOM bank is also providing again personal loans in fresh dollars for various purposes such as paying for education tuition or for buying home furniture.

BLOM Bank started testing the market in July 2023 by issuing payment cards. The success of the card business encouraged the bank to relaunch its car and personal loans last May. Bank Audi has recently restarted its car lending.

The resumption of lending in fresh dollars coincides with the growth of customer deposits in fresh dollars in the banking sector which are currently estimated at nearly $4.2 billion, up from $2 billion in 2022.

Before the onset of the financial crisis, the total portfolio of car loans in the banking sector was estimated at around $1 billion.