“The study clearly shows that in Estonia, consumer loans are primarily taken out to cover various unexpected expenses. As many as 32% of respondents cited unexpected costs as the main reason. This confirms that Estonian consumers tend to be thoughtful and modest in their financial behavior, and do not finance emotional purchases with borrowed money,” said Hanno Ladvas, Head of Inbank’s Estonian business unit.
The main reasons for using consumer loans included purchasing or repairing a car (31%), home renovation and furnishing (26%), and buying electronics and home appliances (25%). Additionally, 15% of respondents have used consumer loans to cover health-related expenses.
While the 2024 study showed that consumer loans were more often used for convenience purchases related to home and electronics, this year’s results clearly indicate a shift toward more practical and unavoidable expenses.
Paying in installments is a conscious choice
Over the past three years, nearly one-fifth of Estonian residents have used a consumer loan or installment payment solution. Although consumer loans are generally approached with caution in Estonia, installment payments have become a deliberate financial planning tool for many.
“What is particularly telling is that 85% of respondents said they consider installment payments already at the planning stage of a purchase. This confirms that the decision is not made impulsively at checkout, but rather that people think through their financial commitments in advance,” Ladvas noted.
The results also show that installment use has become more conscious overall. Only about 10% of respondents decided to use installment payments at the checkout stage.
“Compared to last year’s study, where convenience at the moment of purchase played a bigger role, consumer financial behavior has become significantly more considered. The overall economic situation and low consumer confidence are pushing people to plan their expenses more carefully and to think more thoroughly about taking on financial obligations,” Ladvas explained.
Nearly half of respondents (49%) cited the main reason for using installment payments as the need to spread out a larger one-time expense in order to make a necessary purchase they otherwise could not afford. In addition, one-third of respondents said they use installment payments as a deliberate way to divide expenses into parts to keep their monthly budget balanced. 29% mentioned low or zero interest as a reason. This year, 13% of Estonian residents plan to use installment solutions.
Although merchants consider “buy now, pay later” solutions to be a growing trend and Inbank data shows a 48% increase in such contracts between 2024 and 2025, the study indicates that many consumers have not yet encountered these solutions. Those who have used the service highlighted the main benefit as the ability to spread payments over several months without additional fees.
“This is a rational way to distribute expenses in the short term and avoid a situation where a single large purchase creates a gap in the monthly budget. Consumers are increasingly looking for solutions that support conscious budgeting,” added the Head of Inbank’s Estonian business unit.
The study was commissioned by Inbank AS and conducted by the research company Kantar Emor in November 2025. A total of 1,192 Estonian residents aged 18 to 74 participated in the online survey. The sample is representative in terms of gender, ethnicity, age, and place of residence.
