"ALPHA HOUSING 825: It’s More than a Housing Loan"
Building on its pioneering role to provide the best housing loans for Romanian market, ALPHA BANK ROMANIA has prepared Alpha Housing 825, the most flexible of such credits. The popular Alpha Housing 810, launched in October 2001, is now supplemented by Alpha Housing 825 a new flexible loan. Both loans will be marketed at the same time, offering clients two products with a wide range of benefits.
The new housing loan from Alpha Bank, for buying, building or refurbishing a house, brings with it all those characteristics that one finds in advanced financial countries. First of all, Alpha Housing 825 loan is now granted for up to 25 years. Second, it is given in US dollars, in Euro or in lei at borrower’s option. Third, irrespective of currency, the loan is on floating interest rate. For both this loan and the Alpha Housing 810 we have improved the other terms. The downpayment of our credits has been reduced to 25% of the investment value. People who take the credit in order to construct a new house will benefit from 6 month grace period.
Another benefit for all Alpha Housing applicants is the overdraft for 10% of the loan value, given on Alphacards. Thus, customers will now be able to buy the house with the 75% housing loan and to furbish it with the money they get on the Visa Electron card provided by the Bank. The card credit will continue and may be used in Romania and anywhere in the world for any purpose.
As for collaterals, the bank will confine itself to the mortgage on the building. No guarantors are required for our Alpha Housing loans.
Alpha Bank Romania has extended the offer of free life insurance to its new clients. The next 1000 people contracting a housing loan with Alpha Bank Romania, either AH 810 or AH 825, will benefit of a free life insurance through Alpha Insurance Romania. The benefit that Alpha Bank is giving is substantive. For example, if a customer with a $20,000 loan buys an insurance policy for himself the cost may be 1.6-2% per annum on the balance. This means a total average cost of $3,000 for the ten year period and some $5000 for the 25 year period.
In order to speed up the credit analysis of each application, Alpha Bank Romania front officers will give answers regarding the clients eligibility on the spot, provided that the applicant can give at that moment correct information. If an application is accepted, the customer will be able to draw the credit in maximum 7 working days, from the day that he brings all necessary documents to substantiate the initial information given.
Alpha Bank Romania President Eleftherios Ioannou elaborates on the package features of Alpha Housing loans: "the two housing loans from Alpha Bank have all things in common but the tenor and the interest rate. While Alpha Housing 810 is only for 10 years and bears a fixed interest rate, Alpha Housing 825 is for a period of up to 25 years and has a fluctuating interest rate. The first provides certainty. The instalment remains the same whatever happens with the interest during the ten year period. The other benefits from current low interest rates but carries with it the risk of a change in rate. The rest of the package, including the card with 10% overdraft facility and the life insurance, is applicable to both products. Our offer of two full packages which include the loan itself, the overdraft on a Visa Electron card and the life insurance, has been built on the synergy of Alpha Bank Group in Romania. More such integrated products will come in the future, as the Group broadens its service portfolio on Romanian market".
The currently operating 16 branches of Alpha Bank Romania in Arad, Baia Mare, Brasov, Bucharest, Cluj Napoca, Constanta, Iasi, Otopeni, Pitesti, Ploiesti, Sibiu and Timisoara are already selling both products. Future branches of Bucharest and Oradea will be able to serve local clients by second half of 2003.