Raiffeisenbank offers its customers a new mortgage payment instrument: paid irrevocable letter of credit. The mortgager’s money is deposited on a special bank account to be transferred to the seller only when all terms of the deal are met. The property seller receives the money when the title has passed to the mortgager. Once the LoC is opened, the money cannot be accessed by the mortgager.
Letter of credit can be opened for any term up to 180 days, which can be extended if mutually decided so by the mortgager and the seller. If the LoC has expired and not renewed, while the property title has not passed to the mortgager, the money is returned to the mortgager’s account. The fee for opening of LoC ranges from 1,500 roubles up to 15,000 roubles, depending of the credit amount.
«The use of a paid letter of credit to facilitate mortgage settlements offers our customers a secure means of guaranteed payment when purchasing a flat or a house,» says Andrey Stepanenko, member of the board of Raiffeisenbank, head of retail private individuals directorate.
The standard safe box option for similar settlements remains.
Full details of all Raiffeisenbank mortgage programs can be accessed via the bank’s official website.
ZAO Raiffeisenbank is a subsidiary of Raiffeisen Bank International AG. Raiffeisenbank ranks 9th among the Russian banks in terms of assets, based on 2010 results (Interfax-CEA). According to the same Interfax-CEA data, ZAO Raiffeisenbank ranked 6th in terms of private deposits and 8th with regard to consumer lending.
Raiffeisen Bank International AG regards both Austria, where it is a leading corporate and investment bank, and Central and Eastern Europe (CEE) as its home market. In CEE, RBI operates an extensive network of subsidiary banks, leasing companies and a range of other specialised financial service providers in 17 markets. More than 59,000 employees service about 15 million customers through around 3,000 business outlets, the great majority of which are located in CEE. RBI is the only Austrian bank with a presence in both the world’s financial centres and in Asia, the group’s further geographical area of focus. Raiffeisen Bank International is a fully-consolidated subsidiary of Raiffeisen Zentralbank Oesterreich AG (RZB). RZB indirectly owns around 78.5 per cent of the common stock, which is listed on the Vienna Stock Exchange; the remainder is in free float. RZB is the central institution of the Austrian Raiffeisen Banking Group, the country’s largest banking group, and serves as the group head office of the entire RZB Group, including RBI.