When you look at the very first half-year of 2016, the amount of payday advances issued 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 associated with the Law on Consumer Credits that came 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 payment burden, that also mitigates the possibility of serious social repercussions,вЂ™ said Vitas Vasiliauskas, Chairman of this Board associated with Bank of Lithuania.
In the 1st half-year of 2016, the entire level of new payday advances issued, set alongside the past half-year, paid down by 68.7 % вЂ” to 130 thousand; in identical duration, the total amount of payday advances awarded reduced by half вЂ” to EUR 65 million, its lowest value since 2013.
Credit lenders evaluated 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 almost a quarter. In mid-2015, young people taken into account about 30 percent of total clients of pay day loan organizations; now their share will not also account fully for 23 percent.
Recently the quantity of loans overdue contracted. 12 months on 12 months, the quantity of credits overdue for 30вЂ“90 times paid down by a lot more than a 3rd (or 34.9%), causing a first-time-ever contraction that is annual the quantity of overdue loans.