What is the interest rate? Survey: 15% of borrowers do not know their interest rate 0 7

Almost half of the people, or 46%, know what their loan interest rate is, another 37% know approximately, while 15% admitted that they do not know at all how much their loan costs.

Men are more informed in this regard: 54% of men know their loan rate exactly, while among women this figure is significantly lower at 39%. At the same time, one in five, or 21% of women and 8% of men, say they do not know the rate at all.

Currently, 28% of residents in Latvia have a consumer loan - most often in Riga and its surroundings (34%) and slightly less in the regions (24%). Three-fifths, or 60% of borrowers took their loans from the bank where they have a salary account, while 30% obtained them from non-bank lenders.

Almost half, or 47% of low-income individuals borrowed from non-bank lenders, while among the more affluent, only 14% did so.

The survey results show that people with higher education and income are more likely to search for, compare offers, and make informed decisions, while those with lower education and income expose themselves to greater risks. For example, 62% of high-income individuals know their exact rate, while only 29% of low-income individuals do.

The majority of borrowers, 60%, make their borrowing decisions independently, without consultations and comparisons. Only 28% of respondents compare different offers. People with higher education do this more often (42%) than those with only secondary education (25%).

Although only half of the respondents know their interest rate exactly, 54% cite the interest rate as the most common criterion when choosing a lender. In 45% of cases, the speed and ease of obtaining a loan also influence the choice, in 35% the amount of additional payments, and in 27% the lender's reputation.

Women more often than men choose a loan based on speed and ease of processing (52% and 38% respectively). For men, the price of the loan or the interest rate is more important (65% of men and 44% of women).

Overall, the level of debt in Latvia is moderate - 59% of people say they have no debts, and another 27% claim that loan payments do not exceed 30% of their monthly income. However, in the group with the lowest incomes, nearly one-fifth, or 19%, have a debt burden exceeding 30% of their monthly income.

The survey was conducted in collaboration with the research agency "Norstat Latvija" in September of this year, involving 1,009 residents of Riga and the regions of Latvia aged 18 to 74.