Analytics, Banks, Financial Services, Latvia, Loan

Before taking a decision on a consumer loan, 21% of respondents spent several days studying different offers, 43% spent in thought several weeks but every fourth respondent admitted making a decision about borrowing on the same day when the need for extra money occurred.

When asked to state their main criterion in choosing the lender, half of the respondents named the loan interest. The time factor – how quickly the consumer loan could be obtained – mattered to every third respondent while fewer people cared about the lender’s reputation (11%) and other factors.

Respondents aged 18-25 years are most likely to take consumer loans spontaneously – in one day (42%) while respondents aged 36-45 years are more responsible, pondering over the decision for several weeks (50%). Only 19 % of younger respondents spent so much time thinking about taking a consumer loan.

Respondents with monthly income between EUR 600 and EUR 800 are most likely to think well before taking a consumer loan (52%) while those with monthly income under EUR 600 tend to make the decision very quickly (28%).

The overall attitude to borrowing is prudent with 38% of respondents stating they preferred to draw on their savings or save up the amount they needed. Nearly every fifth respondent (19%) said they were cutting back on other expenses in case of any unplanned spending or larger purchases, and 15% said they would dip into the credit line of their bank cards. This option is the most popular among respondents with monthly income above EUR 800 (25%).

Every tenth admitted turning to their relatives for financial support, in particular young people aged 18-25 years (15%).

DNB Banka carried out its survey from July 20 to July 31 this year among 505 respondents across Latvia who had taken a loan during the last three years.