Credit market situation

Nowadays, loans are much more expensive than in the same period last year or last year

The fact is that the financial crisis is also felt in Croatia in all segments of society. Government, banks, entrepren$s and ordinary citizens are burdened with various problems concerning their business, jobs, property, health.

Caused by the crisis, foreign banks – owners of Croatian foreign-owned banks, do not invest the amount of money as in previous years, because they place money in their home countries.

Also, because of the situation in Croatia, banks lend money to the Croatian economy and thus do not have enough credit for retail loans. Due to the above, today loans are much more expensive than in the same period last or the previous year, and banks are strict and picky when assessing their creditworthiness.

 

Banks choose the ideal clients

bank loans

In order to protect themselves from potential risks, more and more information about future debtors is being sought in their loan forms, and debtors have returned to the big door, which, with the usual life insurance, has again become a frequent instrument of securing a loan.

As most banks are part of the HROK system, a mandatory “Credit Report” detailing all of the customers’ debts, guarantees and co-habits places an insurmountable barrier on those who have a messy credit history in any way.

Currently, in Croatia, the maximum amounts of non-purpose loans are $ 25,000, for a term of 10 years with interest rates ranging between 10.5 and 12.5%.

 

Shop on stocks

credit market

The situation is no better with home loans, where banks give 25-35% less loan amounts than the appraised value of real estate. 1: 1 loans are waiting for some better times. If you do not buy on stock, where banks cooperate with their investors, interest rates range from 7 to 9%. The fall in property prices is a good opportunity for buyers with cash, while everyone else will have trouble realizing the loan. It is important to note that almost all banks, whether they are non-purpose loans or housing loans, discourage loans to non-clients or those who will not, by not granting loans to them, or by granting them on drastically worse terms.

If the announcements of banks and the CNB are to be believed, banks are expecting another blow to the crisis caused by non-payment of loans. The growth of bad loans in the coming period will be a threat to the profitability and stability of banks’ operations. The CNB annual report states that the banking sector has coped with the consequences of the global financial crisis so far. At the beginning of this year, there was a slight increase in bad placements, and in the coming period, the recession of the domestic economy will have a stronger impact on the quality of banks’ assets. Experts point out that the full impact of the recession on the quality of banks’ assets is likely to be seen next year.