Within the half-year that is first of, the quantity of payday advances provided in Lithuania reduced by two thirds 12 months on 12 months, whereas the quantity lent to customers halved. Credit lenders assessed customer solvency more responsibly. For the very first time in history, credits overdue reduced in number.
вЂChanges are obvious. Active guidance, stricter demands associated with Law on Consumer Credits that arrived into force at the start of the 12 months, and competition forced credit loan providers to basically alter their approach and evaluate customer solvency more cautiously. Each one of these modifications relieve the overdue loan payment burden, that also mitigates the possibility of severe social repercussions,вЂ™ said Vitas Vasiliauskas, Chairman for the Board regarding the Bank of Lithuania.
In the 1st half-year of 2016, the entire amount of new payday advances provided, set alongside the past half-year, reduced by 68.7 percent вЂ” to 130 thousand; in identical duration, the quantity of payday advances awarded reduced by half вЂ” to EUR 65 million, its cheapest value since 2013.
Credit rating lenders assessed customer solvency a lot more cautiously. The share of approved applications contracted to 26 per cent in the first-half year of 2015, approximately 40 per cent of applicants were granted a payday loan; year on year. Indebtedness of people more youthful than 25 declined by nearly 25 %. In mid-2015, young people accounted for around 30 percent of total clients of cash advance organizations; now their share will not also account fully for 23 percent.
Recently the quantity of loans overdue contracted. 12 months on year, the total amount of credits overdue for 30вЂ“90 times paid off by significantly more than a 3rd (or 34.9%), resulting in a first-time-ever contraction that is annual the quantity of overdue loans.