More loans expected this year, but what do Albanians want credit for?

For consumption and housing purchases, Albanians increased their requests for loans from banks in the country. The Bank of Albania's survey for the 4th quarter of 2024 on lending activity in the country shows an increase in interest from individuals as a result of the easing of credit standards, mainly for consumer loans.

"The increase in consumer demand can be interpreted as the individual's inability to afford daily expenses but also as an expanded opportunity for citizens to seek additional financing because they feel that the economic situation has improved and allow themselves to take it ," said Elvin Meka, a banking expert.

Despite a tightening of lending conditions for the purchase of real estate as a result of solvency, borrowing for this sector increased at the end of the year.

"More and more, those who have the ability to pay are approaching the purchase of housing, and of course banks are in the market to serve this clientele," Meka emphasized.

According to the Bank of Albania, new loans to individuals during the first 11 months of 2024 reached 94.2 billion lek, an increase of 14.2% compared to the same period last year. According to the Central Bank, interest on loans from individuals will increase further in the first months of 2025. (A2 Televizion)