Loans are a widespread item among people. You could say that they are basically daily. Therefore, it is no wonder that there is a large number of surveys investigating how applicants treat such loans and what they need them for. And this is what we are bringing to you in one of the latest public surveys.
At what age do people borrow?
A lot of interesting information is when you first apply for your first loan, whatever the purpose. The result of a large number of clients of Czech banking institutions and non-banking companies was quite clear. People apply for loans mainly between the eighteenth and twenty-ninth years. This means very often after the age of majority. And no wonder. Many young people do not have as much money to start with and their needs are considerable. Interestingly, up to three quarters of those surveyed took the loan in this age range. As age increases, the percentage of applications decreases.
The main purpose of the loan
Leaving aside whether it is a consumer loan, mortgage, overdraft or anything else, what people are most often borrowing money for will be interesting. Certainly we will not list all the individual things here, but we will focus on the most important things. And that, of course, is housing. Approximately 21% of respondents are investing in apartments, houses, modernization and reconstruction, including the purchase of new equipment. Right in the hinge are things personal needs. The second place is occupied by cars. Acquisition of new or older cars, including possible repairs. Up to 16% of citizens confirmed the investment in the fleet. And what other things do people borrow?
Refinancing product occupies top positions in recent surveys. This means a new loan to replace the existing one. Refinancing is always associated with more favorable conditions and lower interest rates, which saves the client a significant amount. And, on the other hand, what loans were associated with a lower proportion?
- Christmas loans
- Money for family vacation
- Purchase of electronics
So there is a clear improvement in people borrowing for truly practical and beneficial things, and only a very small percentage tends to the three points above. On the contrary, young people in the survey quite surprised. Up to two percent of them decided to take out a loan for their own education. This step can also be approved because a loan of this type has a potential return.
What are the average monthly installments?
The survey carried out another interesting information. It is the size of the monthly payment. In this case, they are classic loans, not mortgages, so their amount does not acquire such values. This is naturally reflected in the size of the monthly payment. People aged 18 to 50 pay on average small sums ranging from CZK 2,000 to CZK 3,500 per month. While older ages from 50 to 65 pay much more. And that is around 4,500 CZK to 5,000 CZK. Of course, this can also be due to the fact that they can no longer obtain such a long maturity and shorten the payment deadline. One of the latest surveys made it clear to the public that people are starting to handle loans more responsibly and see credit products as liabilities that, in addition to pleasure, can also involve risks. And that is definitely good news.