Consumer confidence in housing loans increased
According to the survey, demand growth in housing loans slowed down but continued. Consumer confidence in housing loans, positive expectations regarding the housing market and consumption expenditures other than purchase of housing affected demand positively. According to the banks surveyed, consumer confidence was the main factor behind the increase in demand in other consumer loans.
The tendency to provide the required funds with bank loans instead of individual savings also supported the increase in demand. For the next quarter, 35 percent of banks expect housing loans, 26 percent of vehicle loans and 50 percent of other retail loans.
Banks flexed lending standards
The pricing policy was based on a lower profit margin than the customers who were seen as risky in both loans extended to businesses and retail loans. Following a more flexible policy in terms of the maturity of loans, banks reduced interest and fees and commissions per loan. Banks, which differentiated between standards according to the maturity and amount of the loan, applied lower lending standards to the customers that they considered low and average risk.
The result of the survey is that customers who do not have a problem in their credit history will be offered wider mortgage options. Banks will be able to increase the acceptable monthly installment / monthly income ratio, extend loans up to 75% of the value of the house, and extend the insurance conditions. began to provide convenience with applications.