Retailers hope to boost sales as people’s access to consumer loans improves

As of May 1^st, 2017, the National Bank lifted the requirement to provide a certificate of income when applying for a consumer loan. This requirement was introduced in April 2014 in order to restrict loans to individuals who later could not service the loan. Amid lowered interest rates and small share of troubled loans among the population, most banks are likely to abandon the income certificate rule for small loans. The competition on the consumer lending market is likely to increase, as well, the length period for instalments in some retailers on consumer purchases could be increased and size of overpayments decreased. As people’s wages increase, they could step up demand for consumer loans, and retailers could offer more goods with a low initial payment or without the down payment altogether.