"Every third Estonian resident used installment payments or consumer loans last year, according to Inbank’s consumer survey. While the proportion of people who have used loan products has remained relatively stable over the past two years, there has been an interesting shift in the purposes for which loans are used," said Evelin Rahkema, Head of Loan and Card Sales at Inbank.
Loans or installment payments are primarily used for improving the home environment (30%), purchasing household appliances and electronics (27%), and buying or repairing a car (25%). "Although the use of loans for home improvements has decreased significantly over the past year, the statistics show that home remains a priority for people. Even during economically uncertain times, when consumer expenses have risen across the board, essential home-related expenses are not being postponed," explained Rahkema.
Compared to the previous year, the use of loan products for purchasing household appliances and electronic devices—including phones and laptops—has doubled. Similarly, the use of payment solutions for travel expenses has also increased twofold.
According to Inbank's expert, this trend is driven by the improved accessibility of various payment solutions and increased consumer awareness of options that make shopping more convenient. Additionally, overall price increases are prompting consumers to spread out their purchase costs over several months. "Whereas in the past, electronics were typically paid for upfront or through installment plans, more and more people are now opting to rent phones or laptops instead. The trend of renting products instead of owning them is growing across different sectors each year. In addition to phones and laptops, renting smartwatches and tablets through eco-friendly rental services is becoming increasingly popular," noted Rahkema.
"Driven by the introduction of the car tax, applications for car loans and leasing increased by 14% compared to 2023. The beginning of 2025 has been predictably subdued following the implementation of the tax, but market activity is expected to pick up again in spring and ahead of the VAT increase in July," said Rahkema.
The average application amounts for car loans and leasing have remained relatively stable over the past two years at €7,500 and €21,500, respectively. Meanwhile, the average amount for small loans has decreased over the past year, standing at approximately €3,400 in 2024. However, the number of applications has increased by 6%.
