/View.info/ At least 1 out of 10 quick loans taken in Bulgaria are not returned. This is indicated by a market survey of one of the companies for quick loans, which has been operating for about a year in the country, writes “Monitor”.
“Unreturned loans would bring us losses from uncollected revenues of 30 percent, but when the market in Bulgaria develops, they will fall by half,” says Vlad Shandru from Provident. According to him, the price of quick loans in our country is almost the same as in the other 6 former socialist countries from Central and Eastern Europe, where the company operates.
“To some extent, the reason is that in Bulgaria there is competition from hundreds of other similar companies,” he explained, quoted by the publication.
According to Tihomir Toshev from “Credit Center” in the worst cases
the share of non-returned loans reaches up to 30%.
“It depends on how strict the lenders are when determining credit risk, whether their clients are sufficiently reliable payers,” the consultant believes.
According to him, people who do not have access to bank credit, such as those looking for urgent money, usually take out quick loans. “Because they want to take small amounts of up to BGN 300, in a short period of time, they prefer to save themselves the long approval procedures in the banks, which take up to a week,” adds Toshev. He believes that for amounts over BGN 300, clients they now prefer to turn to a bank, because there the loan will be cheaper than from a fast loan company.
“Most often, the Bulgarian takes out a quick loan for an urgent expense, such as a larger electricity bill because people are afraid of stopping it, as well as for medical needs – medicines, examinations and treatment. Younger people often take money to visit the countryside for a friend’s holiday and they need money to travel and buy a gift,” Toshev says.
The consultant advises if we resort to a quick loan
very well to study the conditions under it
– how much it will cost us, what will be the penalties for late payments, and also to take small amounts with the shortest possible repayment period.
According to him, about 70 percent of Bulgarians do not know that the interest rate is not the price of the loan, but only one of its indicators. “When coming to us for advice, only three out of ten people ask us what the APR will be on the loan, even though it is an important index for comparing different offers,” he states. “Provident” data shows that over 80 per one hundred of their customers prefer to receive the amount of the quick loan at home, paying their installments in the same way. Most of the borrowers are between 25 and 45 years old.
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