Hyundai Trans Kazakhstan is included in the list of car manufacturers Preferential car loan programs

“Development Bank of Kazakhstan” JSC (a subsidiary of “Baiterek National Management Holding” JSC, hereinafter referred to as the Bank, DBK) informs that the Kazakhstani car manufacturer “Hyundai Trans Kazakhstan” LLP is included in the list of car manufacturers under the Loan Program of passenger vehicles buyers of domestic production, approved by the Resolution of the Board of the National Bank of the Republic of Kazakhstan dated May 31, 2019 No. 79 (hereinafter - the National Bank's Program).

The list of cars presented within the framework of preferential car loans includes Hyundai Sonata and Hyundai Santa Fe produced by “Hyundai Trans Kazakhstan” LLP, and in the near future the list will include Hyundai Accent and Hyundai Elantra cars.

"The state program of concessional lending is a powerful tool to support citizens who want to buy a new car, as well as an invaluable contribution to the development of the domestic auto industry" - emphasized Beknur Nesipbaev, director of Astana Motors.

Previously, customers were presented with 42 models of cars produced by “SaryarkaAvtoProm” LLP and “Asia Auto” JSC, with car manufacturers such as "JAC", "Chevrolet", "Ravon", "УАЗ", "Hyundai", "Kia", "Skoda", "LADA", etc.

It is notable that the brands of cars Hyundai Sonata, Hyundai Santa Fe, Hyundai Accent and Hyundai Elantra produced by LLP Hyundai Trans Kazakhstan can only be purchased within the second tranche in the amount of 20 billion tenge (National Bank's Program), issued to second-tier banks in May of this year: ForteBank JSC, SB Sberbank JSC, Halyk Bank of Kazakhstan JSC, Subsidiary JSC "VTB Bank (Kazakhstan)".

“The program of preferential car loans is in great demand among the population, not only due to the low interest rate, but also due to the high quality of Kazakhstan-assembled cars, which encourages our car manufacturers, which in turn has a positive effect on the preservation of jobs in the car industry and the pace of car production. Thus, the share of concessional lending amounted to 17% in the total production volume in the first six months of this year, whereas the industrial production index by last year will be 148.6%”, said Abay Sarkulov, Chairman of the DBK Management Board.

We remind you that since 2015, DBK has allocated six tranches of funds totaling 82 billion tenge to finance the Preferential Car Loan Program. In particular, two tranches from the National Fund in the total amount of 26 billion tenge in 2015-2016, two tranches from the Republican budget in the total amount of 16 billion tenge in 2018-2019. In 2019-2020, DBK, by issuing bonds, borrowed 40 billion tenge from the Kazakhstan Sustainability Fund JSC under the National Bank's Program.

Currently, 7 second-tier banks participate in the car loan program (ATF Bank JSC, Eurasian Bank JSC, Halyk Bank of Kazakhstan JSC, SB Sberbank JSC, Subsidiary Bank VTB Bank (Kazakhstan) JSC, Bank CenterCredit "Forte Bank" JSC).

Lending under the concessional car lending program has a revolving nature: payments from the repayment of existing loans are directed to the issuance of new loans. Thanks to this repeated use of funds, Kazakhstanis purchased 24,481 domestically assembled vehicles on favorable terms, having received loans totaling 120,141 million tenge.               

At the same time, we remind you that DBK, as an operator of the Preferential Car Loan Program, improved the conditions for the implementation of the program by eliminating the procedure for agreeing loan applications to DBK for compliance with the terms of the Program (except for the Program implemented from the funds of the National Fund of the Republic of Kazakhstan). The measure was introduced to reduce the time for consideration of applications. However, DBK continues to monitor the targeted use of funds by participating banks.

The criteria for the provision of concessional auto loans to end borrowers remain the same:

• nominal interest rate - no more than 4% per annum,
• loan term - no more than 7 years;
• loan currency - tenge;
• the cost of one unit of light vehicles - no more than 15 million tenge.

Detailed information on the Preferential Car Loan Program is available on the DBK website www.kdb.kz