Baltic, Banks, Financial Services, Loan

The trends are similar in all three Baltic States. In Latvia, 30% of newly-issued loans (consumer loan, overdraft facility, credit card) have been taken by people aged 25-34 years. The respective figures in Estonia and Lithuania are 35% and 33%. Young people under 24 years of age account for less than 10% of consumer lending in each of the three countries.

Individuals aged 25-34 years also borrow the largest amounts. The average amount of consumer loans taken by people aged 22-45 years in 2015 is the lowest in Lithuania – around EUR 2,600 and the highest in Estonia at EUR 3,000 whereas in Latvia the average size of a consumer loan in this age group was EUR 2,900 last year.

At the same time, the average amount of consumer loans last year increased most steeply in Latvia – by 11% from 2014, as compared to an 8% increase in Lithuania. In Estonia, the average loan amount even decreased slightly year-on-year.

SEB Banka’s socioeconomics expert Edmunds Rudzitis said that different average amounts of consumer loans in the three Baltic States could be explained both with the income level and the intended use of the consumer loan. ”Average wage in Estonia is higher therefore Estonians can afford to borrow larger amounts but Lithuania has the lowest average wage in the Baltics,” he said.

Latvia also has the highest share of overdue loans compared to its Baltic neighbors. For example, loans overdue for more than 90 days made up around 12% of total loan portfolio in Latvia in 2015. Still, the share of overdue loans has decreased from 17% in 2014.