Has a lending boom started in the country? 0 5

“This year, lending has significantly intensified – the balance of loans issued to enterprises has substantially increased, and activity in the housing loan sector continues to grow – households were issued a record volume of new housing loans in July and August,” stated the Bank of Latvia. Moreover, the number of loan requests is also increasing in the non-bank sector. This was confirmed by experts from West Kredit, who were approached by bb.lv for a comment:

“Indeed, the number of requests for loans has significantly increased. This is largely related to the rising demand for real estate purchases. Additionally, the approach of both banks and financial companies towards clients with low incomes and those with small consumer loans has changed. Previously, these clients were, excuse me, marked with a black mark, but now the approach has become more lenient.

However, this does not mean that banks and the non-bank sector do not check the incomes of those applying for loans. The non-bank sector strictly adheres to the rules of the Consumer Rights Protection Center. There are also quite a few refusals in obtaining loans. It is possible to simplify the loan acquisition process if, for example, a potential borrower convinces the financial organization that the funds received will be directed towards economic activities (business).