• For 49.7 per cent the requirement of less application papers is among the main factors in choosing the bank
• Bulgarians take loans for renovations and cars

Stable demand of consumer loans

Bulgarians demonstrate stable demand for consumer loans – in the last five years 46 per cent of the citizens of the cities have already borrowed consumer loan and approximately one third intends to apply for a consumer loan within the next year. This shows a survey by Raiffeisenbank, carried out by Pragmatica Agency. The study was conducted in November 2007 among the citizens between 18 and 60 years old, living in the cities with more than 25 000 inhabitants.

Consumer Loans – among the most popular banking products

The consumer loans are among the most popular banking products (following debit cards) – in the last five years approximately one half of the respondents have already borrowed a consumer loan and 55.7 per cent of them intend to repeat this step.
In opposite, the consumer loans, backed with a mortgage, are not so popular. They are used mainly for purchasing of property (47.8 per cent), starting a business (22.9 per cent) and construction works.

Bulgarians borrow a loan for renovations and purchasing of cars

The Bulgarians take loans for more than one purpose, but mainly for renovations (49.5%) and furnishing (41.8 per cent).
Among the main reasons to apply for a loan is the willing to buy a car, using consumer loan, say 41.2 per cent of the respondents. The purchasing of a real estate is among the main reasons for 36 per cent, developing of a business for 23.3 per cent and construction works for 17.7 per cent.
However, the Bulgarians do not take a loan for holidays and excursions – only 6.5 per cent of the respondents, who have already borrowed a loan, say that they have financed a holiday.
As a whole, the main factors for the choosing of financing institution are the interest rates and the fees – 85 per cent. For 50 per cent, the eased and fast procedures and the requirement of less application forms are among the leading factors.