The average amount of quick loans granted has increased in the last few years, mainly due to high inflation, reaching BGN 1,200, said Association for Responsible Non-Banking Lending Chair Nikolay Tsvetanov in an interview with BTA. He pointed out that the market of non-banking loans so far has not recorded growth in the number of loans.
On Friday, the Bulgarian National Bank (BNB) reported that as of the end of June 2024, loans from fast credit companies amounted to BGN 6.017 billion (3.1% of the estimated GDP). In one year, they increased by 22.1% from BGN 4.926 billion in mid-2023 (2.7% of GDP). The relative share of these credits in the total amount of credit claims increased from 45.2% at the end of June 2023 to 46.7% at the end of the same month of 2024, according to BNB data.
A few days ago, the Association for Responsible Non-Banking Lending warned of an increasing number of credit frauds, and Tsvetanov pointed out that users should be extremely careful on social media.
“Non-banking lending has established itself as a convenient, accessible and trusted alternative to bank loans. We expect this trend to continue, and unscrupulous market participants to gradually and naturally drop out through regulation by the competent authorities and rejection by consumers,” he pointed out.
Tsvetanov said that there will be possible changes in the sector related to Bulgaria’s entry into the eurozone, which will, however, affect companies rather than consumers.
In any case, a smooth transition to the new currency must be guaranteed and implemented. In this interim period, the regulators should watch closely for abuses to prevent them as much as possible, Tsvetanov said.
/DT/
