Analytics, Banks, Financial Services, Latvia, Loan

As many as 43.6% of respondents in the survey had taken a bank loan in the past three years. Most often, borrowers were 26 to 35 years old or 36 to 45 years old (54% and 55% respectively), while people in the age groups of 18 to 25-year-olds and 46 to 55-year-olds were the most reluctant borrowers (68% and 62% respectively). People with higher income, exceeding EUR 800 a month, were more likely to take loans (64%), while those whose monthly income did not exceed EUR 600 a month were the least likely to borrow (38%).

Nearly one in three respondents (30%) had taken a loan to buy a car. This was the purposes cited most often by respondents aged 46 to 55 years (43%), and only 11% of respondents in the age group of 18 to 25-year-olds.

Nearly one in five respondents, or 18%, spent loaned money on home renovation or refurbishing. Also, 1 % used loans to buy real estate and 16% borrowed to make other large purchases. A comparatively high number of respondents, or 15%, said they borrowed money to repay their older debts.

The poll reveals that 8% of respondents, especially older people, had taken loans to pay for medical services, while 5% had borrowed to pay their education and travel costs.

As for the size of the loans taken by residents of Latvia, one fourth of the respondents revealed that they had borrowed up to EUR 300, and one fifth of the respondents had taken loans worth EUR 301-600. Also, 13% had taken loans worth more than EUR 10,000, and 10% had borrowed EUR 1,001-2,000. As many borrowers had taken loans worth EUR 2,001-4,000.