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International Internet Magazine. Baltic States news & analytics Sunday, 25.02.2024, 11:50

Total amount of "quick loans" decreases in Latvia in H1

BC, Riga, 01.11.2013.Print version
The total amount of loans issued by the non-banking sector was LVL 147.136 million in the first six months the year 2013, the majority of the loans was made up of the so-called "quick loans" – LVL 68 million.

Although the amount of "quick loans" has been decreasing from the beginning of the year, they still comprise 46% of the total amount of loans in the first half-year, LETA learned from the Consumer Rights Protection Center.


Leasing and automobile loans, LVL 34.2 million in total, also account for a significant portion of the market – 23%. Consumer loans make up 18% of the total amount of loans, loans issued for movable property used as security – 10%, mortgage loans – 3%.


According to the Consumer Rights Protection Center's data, the amount of "quick loans" issued within a month has been steadily decreasing, from LVL 12.86 million this past January to LVL 9.82 million in June 2013.


The Consumer Rights Protection Center believes that the decrease is due to more information available from the media about the pros and cons of the "quick loans", as well as the declining marketing activity of the "quick loan companies".


According to non-banking financial companies' data, the proportion of consumer loan borrowers who were making their monthly payments on time was 77.53% in the first half this year, payments delayed for up to 30 days made up 7.92%, 31 to 90 days – 4.66%, 91 to 180 days – 2.5%, more than 180 days – 7.38%.


The smallest portion of delinquent loan payments is for leasing and automobile loans, whereas the highest – for mortgage loans and "quick loans".

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