Family Loan Demand Holds Steady for 2025, But Borrowers Are Asking for More
ROME, ITALY – October 26, 2023 – In a sign of continued, if cautious, economic activity, demand for loans to families is projected to remain stable in 2025, according to new data released today. However, a notable trend is emerging: families are borrowing larger amounts, suggesting a shift in spending habits and potentially, increased cost of living pressures. This breaking news, sourced from a fresh analysis of CRIF barometer data-driven EURISC, offers a crucial snapshot of the Italian personal finance landscape and has implications for SEO strategies for financial institutions.
Slight Uptick in Loan Requests, Driven by August Surge
The EURISC data reveals a modest increase in loan requests during the first nine months of the year, climbing by +0.9%. While the overall trend is consistent, August saw a significant spike in applications, with a +6.7% increase. September, however, returned to the average growth rate of +0.7%. This seasonal fluctuation highlights the importance of understanding consumer behavior patterns when analyzing loan demand. For businesses targeting this market, understanding these peaks and valleys is critical for effective Google News visibility.
Average Loan Amounts Jump Nearly 8%
The real story, however, lies in the increasing average loan amount. Currently standing at €9,966, this represents a substantial 7.6% increase compared to the same period in 2024. This suggests that while the number of loan applications isn’t dramatically changing, the value of those applications is. What’s driving this? Experts suggest a combination of factors, including rising inflation and larger purchases – from home improvements to vehicle replacements – becoming necessary.
Personal Loans Surge, Finalized Loans Dip
A closer look at loan types reveals a divergence. Personal loans are experiencing a robust increase of 11.8%, with an average amount of €11,931. Conversely, finalized loans (loans tied to a specific purchase) are down 9.9%, despite also seeing an increase in their average amount (12.6%). This decline in finalized loans is partially offset by a boom in “buy now, pay later” options, specifically deferred payments via POS lending, which have grown by an impressive 26.9% with an average amount of €1,233. September alone saw a staggering +64.9% increase in POS lending. This trend underscores the growing popularity of flexible payment options, particularly for smaller purchases.
Who’s Borrowing and For How Much?
Nearly half (46%) of all loan requests are for amounts under €5,000, while this figure rises to 61% for finalized loans. This indicates that a significant portion of borrowing is for relatively smaller, everyday expenses. Loans exceeding €75,000 remain rare, accounting for only 0.2% of requests. Regarding repayment terms, over a third (34.6%) of applicants opt for a repayment plan spanning 60 months, followed by terms between 25 and 36 months (18%).
The Core Borrowing Demographic
The data also reveals the age groups most actively seeking loans. Individuals aged 45-54 (23.3%) and 35-44 (20.5%) represent the largest segments of applicants, confirming a greater propensity for credit among those in mid-life. This demographic is often balancing family responsibilities, homeownership, and career advancement, leading to increased financial needs.
The rise in average loan amounts, coupled with the increasing popularity of POS lending, paints a complex picture of the Italian consumer. While overall loan demand remains stable, the willingness to borrow larger sums suggests a growing need for financial flexibility. Understanding these trends is crucial for both borrowers and lenders alike. For borrowers, it’s a reminder to carefully assess affordability and explore all available options. For lenders, it’s an opportunity to tailor products and services to meet the evolving needs of the market. Staying informed about these shifts is paramount in today’s dynamic financial landscape, and archyde.com will continue to provide timely updates and insightful analysis.
