Loans Have Become More Accessible. Why? 0 8

• As a specialist in the field of lending, what do you associate the growth of lending with?

• Both banks and financial companies have become more lenient, or if you will, softer in their view of the incomes of potential borrowers and the individual 'weaknesses' of clients,” says Sergey Malikov, chairman of the West kredit council. “So now, even if it turns out that a borrower has visited a casino once or twice, that is no longer a reason for denying a loan. Previously, casino visitors were completely shut out from loans!

Banks indeed have a lot of free funds, and therefore the conditions for obtaining loans are becoming less strict. Nevertheless, both banks and financial companies have clear criteria for determining the creditworthiness of clients. Therefore, we always encourage people to realistically assess their financial capabilities and it is better to take a loan for a smaller amount and with a longer repayment schedule. It is still easier to obtain a loan for entrepreneurial activities.

In any case, we always advise consulting with advisors who will answer all your questions and help you assess your capabilities and risks.

• As far as I know, your company even received a fine from the Consumer Rights Protection Center due to overly 'active' lending.

• Let me explain the situation. Yes, the Consumer Rights Protection Center did decide to fine our company. But I can immediately say that the 'rumors' that we issue loans without checking incomes are greatly exaggerated. Of course, we will draw conclusions and try to analyze the incomes of potential clients and their ability to repay loans even more thoroughly. Unfortunately, our legislation is such that it is easier for us to lend to developers of residential communities as commercial entities than to issue a loan to a young family for the purchase of a small house in that community! Yes, and it is again easier to issue a loan to a developer of an apartment building in the city center than to arrange a loan for a family to purchase a studio apartment. And we want to support not only entrepreneurs but also families who want to improve their living conditions and perhaps think about expanding their family. This is also a contribution to improving the demographic situation.

The demand for loans among people is so great, and we, as non-bank lenders, are benefiting from such demand that we even... overstepped in our desire to lend to Latvians, and the regulator - the Consumer Rights Protection Center - imposed an administrative fine on us. Conclusions will be drawn, and in the future, we will check the financial situation of potential borrowers more carefully.

• If you have already touched on the topic of purchasing a house, what are the trends in this segment of real estate?

• Interest in buying and building houses remains high. Of course, it is more advantageous to take a loan for building a house if you already own a plot of land. Naturally, it is preferable that all utilities are already available. West kredit will continue to strive to meet the need for families to acquire homes and assist in financing the construction of family houses.