Reasons Why The Credit Market In FinlandIs Dwindling Away
Loan sales have gone down again, and people are now waiting anxiously what the year 2015 will bring. It is clear that loans are increasingly and also credit is still given to small business owners, but there a number of speculations about the credit market. Some think that there will be a slight rise in the credit rates, while some think otherwise.
It is quite impossible to say at this stage, but estimates can always toss. Many are looking forward to the estimates that would be given out by the Statistical Office of Finland.
Why Loans will no longer be given Out as Usual?
The interest rate cap regulation brought the average sum to the instant loans. So, there is a clear reason for why it all started – the interest rate cap law came into force on 31/05/2013 at 23:59. Even before 01.06.2013, instant loans were set to any interest rate with no restrictions. However, the new law changed everything, because forsmall loans that are less than 2000 euros,the APR should not be more than 51 percentage points any longer. This was a hard blow to credit market and many shut shop immediately due to unprofitable business. The interest rates sank immediately such that the credit grant would not be profitable. Now, the average amount of loans taken by people has clearly increased, which is due to a decrease in the number of opportunities for taking loans. Visit any site like http://suomilainat.fi/lainamarkkinat-hiipumaan-pain for more information on the situation.
What Happens in the Future to Lending?
The lending volume declined in the past year and 2015 may also find a downward trend in giving out loans to consumers. However, it is unclear as to why there is a downward trend in giving out loans to the consumers. The current economic situation is certainly playing a big role in this and also in the uncertainty of the citizens of Finland. Also, the Greek and the Ukrainian situations have been greatly influenced by the amount of the loans given out and also a small number of loans have been reduced largely.
There are, of course, other reasons too for this, and the 2013 Reform of the law regarding the interest rate ceiling was the reason in particular why the sales potential of microcredit got lowered and immediately fell drastically. This has driven the people to, however, lend consumer credit, and in particular preserve the right of private corporations to credit. Consumer loans are no longer given by the banks as they used to do in the past.
The reason for this is very simple, the prices in private financial organizations are also quite competitive, and often more affordable. The positive aspect of this situation is that the loan is delivered to the account of the applicant usually faster if it is retrieved through the network online banking application.When looking at the statistics of payment defaults, it can be seen that the recent years have been quite gloomy.It is expected that the situation will improve this year. However, it is too early to say anything right now. Visit any site like http://suomilainat.fi/lainamarkkinat-hiipumaan-pain/ for more information on the situation.