In Latvia, one in three quick loans has been used, which is twice as often as in Estonia and the most active in the Baltics, and borrowers have had more difficulty repaying them on time, according to a survey conducted by Citadele Bank and research agency Norstat.
In Latvia, fast loans have been used by every third or 30% and every fifth or 21% of the population has done so several times. Also, 5% admit that there have been or are difficulties in repaying the loan, according to a survey.
Meanwhile, in Lithuania, 22% have used fast loans, but 15% have used this service several times. In Estonia, 15% of the population have borrowed in fast loans and 9% have done so several times. In Lithuania and Estonia, 3% of respondents admitted difficulties in repaying.
64% of respondents in Latvia have never used fast loans, and another 6% indicate that they only borrow from banks. These are the lowest figures in the Baltics – 70% in Lithuania, while in Estonia 76% of the population do not use fast loans, and 8% of the population in both countries use only bank loans.
“A small amount of short-term or quick loan is rarely used as a short-term solution. For example, in Latvia only 4% of fast loan borrowers have used it as a short-term solution. Most fast loans are borrowed regularly, which indicates a worrying trend in financial discipline. “that the existing liabilities are already too large, so it can sometimes be an obstacle to receive the coveted loan for the purchase of your home or car in the bank,” says Jānis Mūrnieks, Head of Citadele ‘s retail services department.
The survey shows that residents in the age group of 30 to 49, in Estonia from 40 to 49, and in Lithuania from 25 to 34, borrow the fastest loans in Latvia. Regionally, short-term loans are most often borrowed by the residents of Kurzeme, Vidzeme and Pieriga, of which the highest percentage of credit default risk is in Kurzeme – 8% and Vidzeme – 10%, while in Pieriga they are over 4%.
The most common difficulties in repaying a loan are for people under the age of 39, with a primary or general secondary education, working in the service or trade sector, and for self-employed persons or housewives on parental leave.
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