OREANDA-NEWS. October 12, 2010. During the three quarters of this year, the amount of consumer credits given to the residents by AB Bank SNORAS, which manages the largest customer service network in Lithuania, reached LTL 15.47 million, while during the respective period of last year due to a significant decrease of the borrowing demand this indicator amounted only to LTL 1.42 million. According to AB Bank SNORAS data, during the last two years the major part of consumer credits in the country was given to women, reported the press-centre of Bank SNORAS.

“During the first three quarters of this year, the amounts of granted consumer credits as well as their number grew stably. During the year, the number of recipients who received consumer credits grew almost 10 times. The volumes of granting consumer credits have not yet reached the level that was before the recession, although the tendency towards the residents of the country being increasingly interested in consumer credits is strong and we expect it to continue in the nearest future,” states Laisvunas Bartkevicius, the deputy director of AB Bank SNORAS Retail Business Division.  

According to L. Bartkevicius, a simpler and quicker procedure of granting credits in AB Bank SNORAS had a significant influence on the increased volumes of consumer credits. A credit up to LTL 10 thousand is given to customers within several minutes after submitting an application in any customer service subdivision of the Bank, including the largest network of mini-banks providing banking services in the country. In the electronic banking system, a credit is granted even faster. The maximum consumer credit granted by the Bank amounts to LTL 50 thousand. In addition, the consumer credit interest in Litas offered by AB Bank SNORAS is one of the smallest on the market and starts from 8 per cent.

In 2008, among all the residents of Lithuania who received consumer credits in AB Bank SNORAS, women comprised 42 per cent, while men exceeded 58 per cent. Last year, when the economic situation in the country changed, the percentage of the Bank’s consumer credits given to women exceeded 56 per cent, while the percentage of consumer credits given to men was 44 per cent. This year, the tendency remains the same – women have the lead among the recipients of consumer credits and the indicators amount to 53 per cent and 47 per cent respectively.

“The changed ratio of credits received by men and women was most likely determined by the fact that women are usually more careful in borrowing and more frequently borrow funds to satisfy the most essential needs. In addition, when repaying credits, women are substantially more disciplined than men; therefore, their credit history is better. Men are more inclined to borrow for non-essential goods, which many were forced to refuse during the difficult times,” says L. Bartkevicius.

During the last two years, the portion of customers having higher university education increased one and a half times – they comprised almost a half of persons who received AB Bank SNORAS consumer credits. This was especially determined by the fact that for people having higher education it is not only easier to preserve their jobs or compete on the job market, but also their income is higher, therefore, they have better opportunities to obtain credits.

This year, consumer credits in Euros are quickly becoming popular. During the three quarters of this year, the part of consumer credits in Euros granted by AB Bank SNORAS comprised 9.5 per cent of all granted consumer credits, while in 2009 this indicator was merely 3 per cent. These tendencies were determined by interest differences – in AB Bank SNORAS, it is cheaper to borrow in Euros than in Litas, while the currency exchange rate is stable.