Clients of Building and Loan Societies are more and more interested in loans: AČSS confirms announced trends

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Six building and loan societies active in the Czech Republic provided the total of 61,230 new loans from saving with building societies and bridging loans in the first half of 2002. The number of loans thus grew by 16.5% year-on-year. The volume of new loans from saving with building societies and bridging loans reached CZK 10 billion, which is 29% more year-on-year.

The well-elaborated loan policy of building and loan societies, based on which loans are provided to the largest possible number of clients of building and loan societies under advantageous loan terms and conditions, has become reflected in the growing interest in loan-related services. Building and loan societies have already provided the total of 581,227 loans from saving with building societies and bridging loans with the volume of nearly CZK 82 billion.

Finance from loans from saving with building societies and bridging loans are – without exception – invested into housing needs; Act on Saving with Building Societies does not allow any other way of using such finance. It results from overviews of individual building and loan societies that clients use the most loans from saving with building societies and bridging loans to purchase an apartment of a family house (34 %); another significant part of the loans (33,7 %) is used for reconstructions and improvements of the existing apartments and houses. New apartments and family houses are acquired using another 16.2% loans from saving with building societies and bridging loans; the remaining part – 16,1% of the finance – is used to cover adjustments within the existing apartments and houses and other housing needs.

All the six building and loan societies confirm an increasing interest of the clients in loans from saving with building societies and bridging loans. Building and loan societies predicted this course also based on foreign experience. To allow the maximum number of their clients using saving with a building society with all offered advantages, they have been adjusting helpfully the terms and conditions of providing loans from saving with building societies and bridging loans. By reducing interest rates, simplifying rules for loan providing, reducing assessment periods and by other measures, they initiated an increased interest of their clients in loans.

Also, prognoses presented – among others – on the press conference of the Czech Building and Loans Societies Association held in April this year become fulfilled: in relation to gradual fulfillment of the market potential, which represents 55% inhabitants according to assumptions and foreign experience, the growth in the number of new clients is not as dynamic at present as it has been so far. On the other hand, clients of building and loan societies are more and more interested in loans, by which the basic principal of saving with a building society is met, as the saving with a building society represents an optimum solution of housing needs, combing own savings with advantageous loans provided by a building and loan society.

Contact: Ing. Jan Pátek, AČSS Secretary, Mobile: 603 329 820, e-mail: tajemnik@acss.cz

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