Within the very first half-year of 2016, the quantity of pay day loans awarded in Lithuania reduced by two thirds 12 months on 12 months, whereas the total amount lent to customers halved. Credit lenders assessed customer solvency more responsibly. When it comes to very first time in history, credits overdue reduced in number.
вЂChanges are obvious. Active guidance, stricter needs regarding the Law on Consumer Credits that arrived into force at the beginning of the and competition forced credit lenders to fundamentally change their approach and assess customer solvency more cautiously year. Every one of these modifications relieve the overdue loan repayment burden, that also mitigates the possibility of serious social repercussions,вЂ™ said Vitas Vasiliauskas, Chairman regarding the Board regarding the Bank of Lithuania.
In the 1st half-year of 2016, the entire number of new pay day loans given, set alongside the past half-year, paid off by 68.7 % вЂ” to 130 thousand; in identical period, the actual quantity of payday advances awarded reduced by half вЂ” to EUR 65 million, its cheapest value since 2013.
Credit lenders examined customer solvency significantly more cautiously. Within the first-half 12 months of 2015, more or less 40 percent of applicants had been issued a quick payday loan; 12 months on 12 months, the share of authorized applications contracted to 26 %. Indebtedness of people more youthful than 25 declined by nearly 25 %. In mid-2015, young individuals taken into account roughly 30 percent of total customers of cash advance organizations; now their share will not also take into account 23 percent.