In order to ease the financial burden when taking on new credit obligations, from June 1st of this year until the end of the year, Luminor banka will apply special incentives in the financing of individuals and small, medium-sized enterprises in Latvia and will cancel commission fees for several types of loans.
For private individuals, the bank will cancel the commission fee for a loan for the purchase or construction of housing and for a consumer loan for home improvement, repair work or energy efficiency improvement, as well as for the purchase of an environmentally friendly car. On the other hand for small and medium enterprises commissions for new investment loans, farmers’ loans, as well as loans and credit lines for current assets up to and including 500 thousand euros will be cancelled.
Commission fees will be temporarily waived for both individuals and companies until the end of this year.
“The increase in inflation and the resulting increase in the cost of living, as well as the increase in Euribor rates, affects the willingness and ability of both citizens and entrepreneurs to borrow, therefore, thinking about our customers and promoting the economy, we have canceled a series of one-time commissions for certain types of loans for individuals and companies. According to the data of our surveys*, the 17% increase in the Euribor rate discourages Latvian small and medium-sized companies from further planned investments and business development. On the other hand, 13% of residents state that they are currently deterred from buying a home not only by the increase in the Euribor rate, but also by uncertainty related to inflation and future price increases. Therefore, we hope that such reliefs will allow at least part of the population to realize their dream of a new home, while entrepreneurs will continue to grow,” says Kaspars Lukačovs, Luminor’s head of personal lending in the Baltics.
Until the end of the year, the current 1% fee for issuing a loan for mortgage loans and small and medium-sized enterprises for new investment loans, farmers’ loans, as well as loans and lines of credit for current assets, as well as a 1.5% fee for issuing a consumer loan, including for the purchase of a car, will be abolished. For example, if a house is purchased for 100 thousand euros, then 1% or 1000 euros commission will no longer be withheld.
* Luminor surveys were conducted in cooperation with research agency Norstat, surveying residents aged 18 to 74 and 750 managers of small and medium enterprises in Latvia, Lithuania and Estonia in April and May 2023.
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