SEB survey: young people use small loans to buy a car and to cover medical expenses.
OREANDA-NEWS. September 23, 2016. SEB’s survey revealed that people aged 18–25 are using small loans to buy a car or to cover medical expenses, but also to purchase furniture and other home furnishings.
“Furnishing their home and purchasing a car are naturally among the first costlier expenses a young person starting their independent life faces. Young people also need small-scale financing to cover medical expenses, said Ainar Lepp?nen, Head of SEB Retail Banking and Technology Area.
Close to two thirds of young people are using a credit card for online shopping, and more than half of them are also using it when travelling abroad or booking plane tickets and hotel rooms.
“Prior to making bigger consumption related expenditures, one should carefully think about both the amount of the expenditure and its intended use. It is the task of the bank to analyse whether the client will be able to cope with the assumed obligation and the repayment of the accompanying additional charges, and to advise the client, thereby helping the client to find the best possible solution,” added Lepp?nen.
One in four participants in the survey prefer to apply for additional financing from the bank where their daily settlements are performed. When making a selection, important factors include affordable interest as well as the reliability of the lender and their flexibility in amending or terminating the agreement.
*The data used is based on a survey carried out by SEB in 2016, among 681 young people between the ages of 18–25.