We swim in credit, not a novelty. The retail hit product is clearly a payday loan, but it was not really known how long and for how long customers would take it with financial institutions.
But E-Money Bank has just told Good Finance:
- On average, its clients require a payday loan of one and a half million forints
- 4.5 years,
- and one in ten is already borrowing through the mobile app.
At E-Money, the volume of payday loans disbursed by 126 percent compared to the same period last year, and the bank expects strong demand for the remainder of this year.
Everybody wants a loan?
The credit institution is experiencing an extremely intense interest in payday loans: this year, on average, placements at the financial institution increased by eight percent each month, and the period between February and May proved to be outstanding.
Does everyone really borrow a payday loan? According to statistics from the National Bank of Hungary, payday loans have become one of the leading products in the retail credit market: in the first nine months of 2017, Hungarian households signed payday loan agreements worth HUF 228.2 billion, a 47 percent increase year-on-year. This is particularly remarkable given that the total retail credit market, excluding overdrafts, grew by approximately 30 percent in the first three quarters compared to the same period in 2016.
A loan through a mobile application
The significant interest in the E-Money Bank payday loan product is due in part to the fact that existing customers of the Bank can apply for a loan through a mobile application and can apply for the amount requested within 7 minutes. Good Finance wrote a synopsis on fast-start payday loans, a very useful development for anyone who needs money very quickly.
Another reason is the competitive price: the E-Money Advance payday loan is up to you It is also available at 8.17% APR, if the claimant has a minimum monthly income of HUF 250,000, and we do not need to switch banks.
No stops, Christmas frenzy is coming
E-Money Bank expects the intense interest in payday loans to continue in the period ahead, while the favorable interest rate trend will also increase the proportion of customers replacing their previous loans with available payday loans.
We have also written about the benefits of a loan redemption, which are worth considering for those who have trouble paying off installments on their loan taken up years ago.