Croatian cash loans appealing to many in December, boom expected

December 13, 2021 – Croatian cash loans are attractive to many, and there has been a very strong jump compared to the same period last year.

As Poslovni Dnevnik writes, the aforementioned sharp increase in Croatian cash lending argues for people’s growing demand for purposeless cash lending, which was recently discussed by the Croatian National Bank, and in the context of expectations an increased contribution of personal consumption to GDP growth in the last quarter of 2021.

It could also indicate an increase in consumer optimism in November this year compared to the same month last year. Banks have decided to respond to the increased demand, so there is hardly any bank that does not highlight this cash loan offer in its promotional campaigns and on its website.

This is partly an expected increase in consumption for the pre-festive period, but as the times are unusual, trends that would otherwise be typical for this time of year are being watched closely.

These days, Croatian banks are really bombarding the public with advertisements for “affordable and fast cash”, with interest rates that have never been lower for this type of product, but which remain at levels that make this product profitable for banks, even in the face of rising inflation, writes Novi list.

In addition to some people now spending more money than they saved during the lockdown, some people are also taking aimless Croatian cash loans to buy anything and everything, including various consumer goods, and they probably also fix increasing their household budget under rising price conditions.

Some banks have confirmed that people, when it comes to cash loans, continue to demand the kuna and not the single currency, despite the fact that the euro is expected to be introduced in early 2023. Certainly, the maturity of the loans “cash” of course implies a shorter period than home loans, but they are approved for a period longer than one year.

It turns out that Croatian cash loans, which continue to grow at a slower pace than housing loans (due to government incentives and real estate investments), are clearly accelerating as the end of the year approaches. , and the banks are still waiting for their “boom” in December.

Privredna banka Zagreb (PBZ) also confirmed that over the last period there has been continued interest in Croatian cash lending and that “kuna lending still predominates”. OTP banka says that they continuously record positive trends in Croatian cash lending, and in the last quarter there has been a slight increase in demand, which they say is expected for this period. of the year, and given the ongoing global coronavirus pandemic and its staggering impact on personal consumption.

In the monetary structure, kuna loans are still the most represented, according to OTP, and the RBA has seen an increase in aimless loans to people throughout 2021.

They say that the demand for kuna loans is generally higher than for loans with a euro currency clause, but in the last quarter there has been an increase in aimless loans with a euro clause, probably due to the fact that the country is getting closer and closer to entering the euro zone.

Addiko Bank indicates that “the end of the year is focused on consumption, gifts and family for consumers, and less on financing resolution and investment planning, so the demand for loans is seasonally the most weak compared to the rest of the year”.

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