38% use a loan to cover household expenses, 30% – for home repairs, and 14% – for car supplies
46% of Bulgarians have applied for a loan online in 2021. This shows that taking loans online is still the more preferred approach. The data is from a recent online credit market survey prepared by a marketing agency and fully funded by the leading non-bank consumer credit company Cash Credit. A large circle of people from urban areas participated in the survey.
The study also shows that in 2021 the preferred loan amount is BGN 1,000 with a repayment period of 6 months. The most common reasons for withdrawing it are: household consumables (38%), home repairs (30%), car costs (14%), and medical expenses (12%). Although 72% of people plan to cut their spending if there is another lockdown, there are often costs that are difficult to avoid and are listed above.
The data also show that 48% of Bulgarians pay the most attention to the terms of the loan when it comes time to choose the company they can trust. They are interested and make comparisons where the conditions are most favorable to their financial profile and on this basis form their choice. For 30% of consumers, the leading factor is promotions, and 29% are influenced by the recognizability of the company. More than half of the participants in the survey would take a loan from the same credit institution they trusted the previous time, which is not a sure indication of loyalty. The reason is rather their caution and doubts that another company can offer a loan with “hidden fees”, which inevitably increases the risks.
Relying on the survey, another conclusion is formed: for 37% of Bulgarians the main reason to change the company they initially trusted is the better interest rates. 23% of consumers will prefer a competitive company if they find better credit terms, and 21% would be repelled by poor service and unfair treatment of employees.
“Two of our core values in the company, trust, and transparency, serve as a compass to guide us in the direction we need to go when building our relationships with customers. The study once again showed us how important it is for our customers to know that they can rely on a reliable partner who offers maximum comfort in service and transparent conditions. We are increasingly striving for the idea of building trust with our customers and listening to their needs and requirements,” said Stanislava Stratieva, Marketing Manager of Cash Credit.
The survey also shows that 2/3 of the respondents prefer to repay their loan in equal monthly installments, which indicates the client’s demand for security and predictability – something completely understandable, given the 2-year life in a pandemic.
A curious fact is that compared to previous years, there is now a slight increase in interest in standard office services when taking a loan. 33% of people want to have real contact with an employee of the company, which is explained by the purely human sense of greater trust and transparency that the client seeks during a pandemic.