The economy of Belarus is dependent on Russian realities. In the context of a connected neighborhood, the country's markets often repeat the crisis phenomena of Russia with the addition of their own problems. However, despite all the financial unrest, the banking sector of Belarus is quite stable, although it does not receive the same government support as the Russian banking system.

Of interest is the experience of Belarusian banks in crisis conditions and the comparison of banking products with Russian counterparts.

Let's look at consumer loans using the example of a financial institution from the TOP-10 banks of the Republic of Belarus. MTbank is the winner of many prestigious awards. Recognized as the best Belarusian bank based on the results of 2015.

General terms

Mtbank issues loans in Belarusian denominated rubles (BYN). Due to the short period of time after denomination, all limits are additionally prescribed in non-denominated monetary units - BYR.

The list of loans for private consumption of MTBank is small and is represented by two products:

• consumer loan “Simply as simple as that”;
• consumer loan with guarantee.

The issuance of loans in stores, retail chains, and points of sale has been suspended.

One of the features of MTBank loans is the possibility of changing the rate under the agreement unilaterally.

The client is notified of the increase in cost. If the borrower does not express a written refusal within 10 days, the rate changes. Refusal of the new conditions must be accompanied by the return of the outstanding amount within three months.

The presence of such a clause allows the bank to issue long-term loans in an unstable economic environment with sharp currency fluctuations and high inflation.

The loan rate is single, tied to the overnight rate of the National Bank of the Republic of Belarus.

The loan amount is transferred to the client’s account to which the bank card is linked. You can use it to pay in stores without commission or withdraw money from ATMs.

Loan funds can be used for any purpose, except for placing deposits in banks, purchasing certificates of deposit or savings certificates, or other banking products that provide for the payment of interest income.

One can note the absence of targeted loans from MTBank and the transition to universal products. The absence of mortgage and car loans, which are familiar to Russians, is explained by equal conditions for all types of loans on the Belarusian market.

The unpredictability of economic realities does not allow issuing money for very long periods, and the cost of loans is approximately the same regardless of the purpose.

Using credit insurance allows you to reduce lending risks in a way that is less costly for the bank than traditional collateral.

Therefore, there is no need to separate loans for the purchase of a car and real estate into separate offers.

Another factor contributing to the issuance of targeted loans in Russia and non-existent in the Belarusian market is state subsidization of car loans and mortgages.

Decor

To receive a loan, a citizen must submit a loan application in one of three ways:

• at the MTBank office;
• on the official site;
• by phone.

The online application does not contain any information other than contact information and consent to their processing. Therefore, a preliminary decision is essentially an invitation to the bank to fill out a full application.

When approving a loan, the client signs individual conditions, which are an accession to the general conditions for issuing a loan.

The bank can make changes by posting new general conditions on the official website.

Bank line

MTBank's retail credit line has been significantly reduced. It can be noted that the credit institution has switched to universal loans and card lending to private clients.

The main conditions for MTBank consumer loans are presented in the table:

The loan “Easy as shelling pears” is issued without collateral or guarantors. At the client's request, insurance can be included with the amount of the principal debt. The money is transferred to the client's card account.

The single debt repayment period is from the 1st to the 10th of the month following the settlement month.

A consumer loan with a guarantee is provided if there are guarantees from at least two citizens. Money can be received in cash at the bank's cash desk or by transfer to a card account.

At the request of the client, the insurance premium is included in the loan. For granting a loan, the borrower pays a commission, which can be included in the total loan amount and is paid to the bank at the time the money is received. Cancellation from 1 to the date specified in the contract.

Consumer loan from MTBank without certificates and guarantors

Mtbank does not provide loans without proof of income. The issuance of express loans for the purchase of goods at retail outlets is currently suspended.

The absence of collateral and guarantors is provided for the “Simply Simple” product.

Cash

Both MTBank consumer loans are issued by transferring money to the borrower’s card account to be opened.

If desired, money can be obtained from the bank's cash desk. You can withdraw money from your card account without additional fees at ATMs and terminals.

Without paying for additional services, payments for goods and services are also carried out using a card.

Documentation

Applying for a loan “Simply as simple as that” is carried out using a passport and salary certificate.

The bank may request other documents. Guarantors provide the same documents. A guarantee agreement is previously concluded with them.

Interest rates

The bank has uniform rates for all clients. For the “Simply Simple” loan, the cost of the loan is 32.2% per annum, for a consumer loan with a guarantee - 31%.

From time to time, MTBank holds promotions when loans can be issued at reduced interest rates.

It is worth noting that there are no preferential categories of borrowers. During the crisis, the bank abandoned them.

Requirements for borrowers

Currently, the bank issues loans to citizens of Belarus who have a regular income. The maximum age of borrowers is limited: men up to 64 years old, women up to 70 years old.

During the entire term of the contract, MTBank requires the provision of information:

• about the appearance of overdue debts to banks lasting more than a month;
• on the conviction of the borrower for criminal offenses resulting in imprisonment and (or) confiscation of property;
• on suspension of operations on the borrower's accounts;

• on the client’s participation as a defendant in legal proceedings if the amount of the claim against the borrower exceeds 50% of the amount of debts to the Bank;

• loss of sources of income;
• about the occurrence of debts extended more than once and (or) overdue debts to other banks and other counterparties, the budget, if the amount of debt exceeds 50% of the amount of debts to the bank;
• about the arrest of the borrower.

Deadlines

Mtbank provides loans for a period of up to 7 years under the “Simply Simple” product, and up to 5 years for a consumer loan with a guarantee.

The specific period is established in the terms of the loan agreement.

The borrower can obtain a loan for a shorter period or by reducing the loan period through early repayment.

Early repayment

Debt repayment is carried out in accordance with the payment schedule attached to the agreement.

Early repayment of the entire loan or part of it is possible without restrictions.

The bank may present the entire amount of the debt for early repayment if the debt is overdue for more than 265 days.

Advantages and disadvantages

The positive aspects of MTBank loans are:

• simple conditions for obtaining loans;
• uniform requirements for borrowers and terms of issuance;
• long loan terms.

The disadvantages include:

• insecurity of clients from changes in contract terms;
• high interest rates;
• lack of benefits;

• additional borrower expenses for insurance and commissions.

In general, one can note the shifting of financial risks onto conscientious borrowers, which leads to a significant increase in the cost of retail loans.

The “Easy as Easy” credit card is a universal banking product with which you can withdraw cash and pay for purchases in any retail chain. This card has an international standard and will allow you to additionally make payments online and abroad.

The principle of operation of the card is that it has a cash limit. The maximum size of this limit depends on the average monthly income of the borrower. Interest on the loan is calculated only on the amount of money spent. In the first 40 days after the start of spending funds, there is a grace period, during which an interest rate of 15% per annum is applied.

To obtain a card, you must submit an electronic application on the website portal. Then, at the appointed time, you should go to the bank, where you will be given a bank card with a loan credited to it.

The “Simply Simple” credit card will help make your wishes come true at minimal cost.

“Tricks” of the grace period, commissions from the “forgot to warn you” series, can a credit card be more profitable than a savings card and how to spend credit money with benefit for your personal pocket?

Tricks" of the grace period, commissions from the "forgot to warn you" series, can a credit card be more profitable than a savings card and how to spend credit money with benefit for your personal pocket?

In the first part " Credit card: dangerous, but not fatal" We used a drawing to select five banks and their products, which we were going to sort by overpayment and examine more closely:

1) Idea Bank, “Dream” loan;

2) MTBank, “Easy as Easy” credit card;

3) Bank “Moscow-Minsk”, loan “for PERSONAL”;

4) RRB-Bank, “Card-Express” loan;

5) Belinvestbank, Express Credit.

We are looking for “hidden” commissions!

To begin with, we will rate the five loan products we have chosen for overpayment, provided that we need to take out 1000 BYN (10 million non-denominated rubles) for a period of 12 months. The rating was compiled based on information received from banks’ contact centers on September 19, 2016 (the amount may be rounded).

Name of bank and loan product	% rate	Total amount to be repaid, BYN	Amount to be repaid on the principal debt, BYN	Amount to be repaid by %, BYN	Max monthly payment, BYN
Belinvestbank, Express Credit
RRB-Bank, credit "Card Express"
Bank "Moscow-Minsk", loan "for PERSONAL"
MTBank, “Easy as Easy” credit card (for cash withdrawals)
Idea Bank, “Dream” loan

It becomes clear that with the same interest rate on a loan there cannot be such different data on overpayment. It turns out that something is “not clean”. It remains to find what exactly.

Smallest overpayment"Express loan" from Belinvestbank. This is understandable, because the monthly payment decreases while using the loan, which indicates a differentiated payment.

Credit lesson. A differentiated payment on a loan is always more profitable than an annuity payment (in equal shares), so the overpayment for the time you use the loan money will be minimal in this case.

Loan from MTBank, although it is repaid in equal shares, it has features with the determination of the interest rate. The card has a grace period of up to 40 days and the interest rate on the loan at this time is 29%. The rest of the time, the percentage rate depends on whether credit funds are used for payment or cashed out at the bank - 33% and 49%, respectively.

We will talk about the “tricky” grace period from MTBank and its features a little later.

Exceeded all our expectations“Dream” loan from Idea Bank. Not in the best sense of the word... Let's take a closer look at this loan.

To begin with, it is worth saying that according to the call center, this is the only bank loan that is issued on a plastic card. Let us remind you that the required amount is 1000 BYN, the period of use is 12 months.

It turned out that we are asking the bank for a loan of 1000 BYN, but we are paying 1300 BYN of the principal debt! We started to figure it out.

It turned out that the amount that will be specified in the loan agreement is 1300 BYN. Of these, 100 BYN is compulsory insurance, which is issued regardless of the client’s wishes. The call center operator immediately warned about it. But the remaining 2 million non-denominated rubles were “declassified” only after our direct question about their “origin.”

They turned out to be the “minimum balance of the loan.” The client cannot use these funds immediately, but will receive them only after he has repaid the entire loan. But you will have to pay interest for them immediately. This minimum balance is very similar to a security deposit in a fixed amount. Its usefulness, in my opinion, can only be appreciated by forgetful borrowers. After all, from these 200BYN the bank will repay the monthly payment if the client forgets about it. Such actions are motivated by concern for the bank client’s credit history.

The nuances of the grace period

What could be bad and incomprehensible about the grace period, you ask. It turns out it can! What’s most interesting is that until you yourself begin to be interested in this nuance, they are unlikely to tell you about it. For comparison, let’s take two loan products:

1) Loan “Understandable” from RRB Bank;

2) Credit card “Easy as Easy” from MTBank.

Not as praise, but for the sake of stating a fact, I should note transparency and attractiveness “Understandable” loan from RRB Bank. This is one of those rare cases when the terms of the loan reflected on the bank’s website, just like the consultation of the contact center, deserve the highest rating - “5”.

To begin with, the grace period is 30 calendar days from the date of the first withdrawal or payment. The loan rate during this period is 0.1% per annum. It does not depend on whether the non-cash payment was made or whether the cardholder withdrew funds from an ATM or bank cash desk.

In order for the grace period to be renewed and the client to continue to use credit funds at this preferential rate, the amount used must be repaid in full before the expiration of 30 calendar days. If such actions are “cycled” on a monthly basis, then a card with credit capital will cost almost free.

I can't say that about credit card “Easy as Easy” from MTBank. Here everything is much more complicated or, frankly speaking, far from simple, despite the bank's assertion.

Fact 1.

First, let's look at the grace period. It is stated for up to 40 days. The grace repayment date, however, is fixed - the 10th day of the month following the month of withdrawal. For greater clarity, let’s list this fact in the table:

Fact 2.

The rate declared by the bank during the grace period on the loan is 29%. However, it is not indicated anywhere that it will only apply in case of non-cash payment. If the client wishes to cash out credit money during the grace period, then for the entire period (from the moment of the first transaction on the card) he will have to pay 49% per annum. I wonder if customers are warned about this? Or do the call center employees inform potential borrowers about this small nuance in the same way as us - after a leading question?

Screenshot from the MTBank website, 09.19.2016, 17:40

Credit card instead of savings card

Can a credit card be used as a savings card? Can! In addition, this can be quite a profitable and practical solution. Currently, there are only a few such hybrid cards. Apparently this offer is not so popular among bank clients, although its advantages are obvious.

“Talaka” and “Travel Card” cards from Technobank combine the functions of a credit and debit card. The interest accrual on the “savings” part is too low here (0.01%) to be of sufficient interest to us. But the same cannot be said about VTB Bank cards. There are two very attractive products here, taking into account even the most demanding customer preferences.

The Turtle hybrid card from VTB Bank is designed for shopping lovers. It can be called by different names - installment card, credit card, savings account with the ability to use credit funds. You don’t need to look for long to find the advantages of the card:

1) grace period 120 days (rate 0.0001%). To renew the grace period before the end of 120 days, you need to return the spent amount of money to the card;

2) during the grace period, only non-cash payments by card are possible in the bank’s partner stores. Cash withdrawals are “blocked” at this time;

3) “Turtle” can be used as a savings card, storing your own funds on it. The interest rate on equity capital will be 2% (for an amount starting from 300.01 BYN), which is currently a completely competitive offer;

4) when withdrawing funds from a card, first of all, own funds are “spent”, and only then credit funds;

5) the commission for withdrawing funds from the card (both own and credit) is not charged in devices of VTB Bank and devices of VTB Group banks in the CIS countries and Georgia; in devices of other banks the commission will be 2.5% of the amount (minimum 4BYN) .

The bank has another similar offer - the “Purse” card. You can withdraw cash using it even from the first day of use, while for the first 60 days there will be a grace period (20% per annum), and from 61 days the rate will increase to 49% per annum. The savings portion and cash withdrawal fees are similar to those offered on the Turtle card discussed above.

Now let’s look at how such a hybrid card can be more profitable than a savings card. It is enough to consider a savings account from the same VTB Bank. Its name is the Fast and the Furious Instant Release Card. Here the bank offers the same interest rate as on the savings portion of hybrid cards. The only difference is that the “Fast and Furious” product also provides for additional “contributions”. This:

1) insurance premium in the amount of 25 BYN;

2) issue and maintenance of the card during the validity period of 75BYN.

A fee of 2BYN for SMS notification is charged for both credit and savings cards. By the way, this is a very convenient service that develops attention to the “thickness” of your “wallet”.

Previously, BNB Bank had a similar hybrid product, but from July 6, 2015, the bank decided to refuse to issue new cards of this type. We are talking about the “Treasure Map” of BNB Bank. For those who managed to get such a card earlier, the terms and conditions still apply. Thus, the credit part of the “wallet” is charged 42% per annum, subject to the use of these funds, and the savings part - 2.5%. This offer is many times more profitable than the savings cards currently offered by BNB-Bank.

The most budget savings card of BNB Bank (Maxima Plus) will go to its owner for free, but the minimum balance on the card in the amount of 100 BYN and the initial payment of 100 BYN seriously reduce its attractiveness.

The most titled “sberbank” (Ultima Visa Infinite) is not at all designed for the average resident of the capital. It is unlikely that free cash withdrawals from it can compensate for the 2-year “fee” for card servicing in the amount of 750 US dollars and the minimum balance for the entire period of using the product in the amount of 750 BYN.

We also cannot help but recall the credit cards of the Dream Card and Wallet Card series. These cards have a debit function, that is, they allow you to keep your own (not credit) funds on your balance. The big catch is that if you pay for a purchase with a card or withdraw cash, then credit money will be written off from your account first, for the use of which you will have to pay the bank, and only then your personal savings. A very inconvenient nuance for the client.

Thus, if you approach the choice of product without haste and with due care, you can still win.

A credit card can bring, not just take away

Here we will talk about credit cards with cash back or money back. Agree, taking into account the fact that a loan itself is not a cheap pleasure now, such a bonus can be considered a very pleasant addition to the product.

Banks in Belarus are actively introducing the cash-back function in card products, but more often we are talking about savings cards or standard debit cards. It is much more interesting, in my opinion, to apply this bonus to credit cards. Such examples already exist in the practice of Belarusian banks.

Debit card with the possibility of overdraft lending “Talaka” from Technobank. Cash back is provided in the amount of 0.3% to 3% depending on the purchase amount. It does not matter what funds the card owner spends - personal or credit. Moreover, if the card owner has made less than 15 non-cash purchases per month using it, there can be no talk of any additional “return bonus”. Attention, the card is not serviced by banks for free - 1.5 BYN per year.

Travel Card from Technobank offers cash back up to 5% of the payment amount. The card is again a debit card with an overdraft option.

Screenshot from the Technobank website, 09.20.2016, 12:20

This only applies to purchases made abroad or on the Internet using personal or credit funds. Annual maintenance of such a card with a magnetic stripe will cost 5BYN, and with a chip - 20BYN. These are just some of Technobank's similar offers.

BNB-Bank offers cash back in the amount of 1% of the purchase amount on its credit cards from the Dream Card and Wallet Card series (only if at least 20% of the funds spent were used non-cash). This pleasure is far from free - the bank “asks” $5 to activate the function. Moreover, for Wallet Card series cards the service can be activated immediately by paying the indicated amount, but for Dream Card cards this will only be possible if a personalized card is issued (minimum $25 for 2 years) and a one-time payment of the coveted $5.

Belagroprombank also has “credit cards” with cash back. As part of the “Care” pension project, the remuneration for non-cash payments will be 2%.

Belgazprombank also supported the development of this area with two of its products:

1) “Purchase card” - 2% cash back applies only to non-cash spending of your own funds from the card, not credit. Thus, the “Purchase Card” is another hybrid bank card.

2) “Fast money” - a daily bonus for non-cash payments of 1.5% of the payment amount using credit funds from a MasterCard World card. Card maintenance costs 15BYN per month.

Some Russian banks, in the form of “credit bonuses,” offer to accumulate “free” miles for flights, so that later you can go on your dream trip. Belarusian banks practice awarding bonus points for using credit funds, which can be used to receive discounts on certain goods.

Be that as it may, you shouldn’t be afraid of credit cards, but you shouldn’t underestimate the flight of imagination of their developers either. If you approach the selection of this product competently and carefully, it will not be a burden.

The main thing is not the fact of applying for a loan, but its purpose. It can be casual, or it can be noble. A bank loan spent on truly necessary and necessary things is somewhat similar to the time loan that Mark Levy wrote about in his novel “Between Heaven and Earth”:

"Eachmorning, when we wake up, we receive a credit of 86,400 secondslifeVday, and when we fall asleep in the evening, the supply disappears, and what was not lived during the day is gone.

Every morning the magic begins anew, we are again given a credit of 86,400 seconds. And we play by a rule that cannot be circumvented: the bank can close the account at any time without warning;lifecould stop at any second.

What do we do with our daily 86,400 seconds?”

Every commercial bank in the Republic of Belarus tries to provide the most favorable conditions for consumer lending to its potential clients. MTBank is no exception; it has several lending programs for potential borrowers. At the same time, its distinctive feature is that you can get a loan in a short time without providing salary certificates. However, let’s look in more detail at what loans for consumer needs MTBank offers to its clients today.

At the moment, the bank offers only three programs for potential borrowers; let’s look at their conditions in more detail. MTBank offers a loan as simple as simple as that at an annual interest rate of 16% per year. The peculiarity of this type of lending is that the borrower receives funds by transferring to a plastic card. The maximum loan amount is limited by the borrower's solvency. The loan amount is no more than 500 Belarusian rubles, the maximum loan period is up to 12 months. According to the terms of this offer, no guarantee or collateral is required for the loan.

A similar offer is a loan Simpler than simple, but here the distinctive features of the offer are a term of up to seven years, the interest rate is floating, the borrower pays 29.9% per year for the first six months, starting from 7 per month until the end of the contract, 30% per year. Similar to the previous sentence, funds are transferred to the plastic card account; it can be used for non-cash payment for goods and services.

Please note that loan rates at MTBank directly depend on the overnight rate of the National Bank of the Republic of Belarus. That is, if the value increases, the bank has the right to unilaterally raise the interest rate under the current agreement.

Finally, the bank’s latest offer is a loan guaranteed by individuals; it is also transferred to the client’s plastic card account. The annual interest rate is 22% per year, two individuals act as collateral. The loan term is up to 5 years, the loan amount is from 500 Belarusian rubles to 15,000 Belarusian rubles.

Requirements for the borrower

Each commercial bank has a number of requirements for potential lending partners, in particular, the issue of loan collateral occupies a special place. MTBank loans without guarantors can be obtained under the Easy as Easy program, however, a number of documents are required from the client, including a salary certificate. The bank may unilaterally consider the option of lending without documents confirming income if the borrower has a positive credit file. This means that he previously obtained loans from commercial banks of the Republic of Belarus and fulfilled loan obligations in a timely manner.

What documents are required from the borrower:

• passport of a citizen of the Republic of Belarus;
• a second document of your choice, for example, a driver’s license;
• application form.

Please note that the bank requires other documents for each borrower individually.

If you are applying for a loan with a guarantor, then, accordingly, he will also be required to provide documents confirming his monthly income; the bank similarly checks the credit history of the guarantor. By the way, we cannot help but say that participants in the bank’s salary project receive money on credit without confirming their income.

How to get a loan

Taking out a loan from MTBank will be quite simple; to do this, you can submit an application online. To do this, just open the official website of the bank, which is located at https://www.mtbank.by/private/credits, and fill out a short form. However, it is worth considering that the questionnaire does not require you to indicate passport data and other information about yourself, which means this is a feedback form, that is, you fill out a short questionnaire, a bank specialist will contact you and make an appointment for you.

Similarly, you can apply for a loan directly at a bank branch. To do this, you choose the branch closest to you and contact the loan specialist directly, where you can fill out a loan application form and provide all your documents. This will help you receive a response to your application as soon as possible.

Please note that a consumer loan guaranteed by individuals can only be issued at a bank branch after submitting all the required documents.

So, if you are interested in the terms of lending at MTBank, then at any time you can familiarize yourself with the current offers on the official website or ask a question to the hotline operator at +375 29 699 3972. As for the profitability of lending, there are quite acceptable conditions and loyal requirements for borrowers. Therefore, the bank can be considered as a credit partner.