Banks, Financial Services, Latvia, Loan

Compared to January-April 2015, when EUR 49 million were extended in such loans, non-bank lending gas grown by 10%.

The amount of loans granted with repayment schedules rose significantly in the first four months of this year, from EUR 9.8 million in the same period last year to EUR 15.3 million in January-April 2016, which is a 55% increase. Meanwhile, free and interest-free remote loans dropped by 35%, from EUR 9.5 million a year ago to EUR 6.1 million in the four months of this year. Short-term loans of up to 30 days and loans repayable in one installment rose 11%, from EUR 30.3 million to EUR 33.7 million.

The data shows that the situation in the non-bank lending market has been improving thanks to the amendments passed to the consumer rights protection law, which took effect this year, the association’s head Gints Aboltins believes.

The association’s data shows that the number of loan refusals to new clients has grown by 61% this year as the non-bank lenders have been assessing clients’ solvency more carefully.

The average loan, granted during the above period, was EUR 225, while the largest loan granted in one payment was EUR 425.