A study on the relationship between individual loan use and socioeconomic conditions of individuals: The case of Artvin province

After the financial crisis in Turkey in 2001, banks have prefered to diversify their loan products for individual customers in order to spread the risk to the base. In addition to the changing credit policies of banks, as a result of the changes in the consumption habits of individuals, the use of personal loans has become extremely widespread in our country, especially since the 2000s. Loans, which consist of an economic transaction for banks, can have economic, social and even psychological consequences for borrowers. Unconscious expenditures or borrowing decisions often bring devastating results for individuals. In this study, the perceptions, attitudes, behaviors and opinions of individuals living in the province of Artvin towards individual loans were examined. The questionnaire prepared for this purpose was applied throughout the province on a voluntary basis. The obtained data were analyzed by SPSS program's T-Test, Anova Test and Crosstabs techniques. According to the results obtained; individuals borrow in case lack of income or buying assets such as house/vehicle. The most important factor in the loan to be used is the costs such as interest and commission. Credit cards are the most widely used personal loan product. Individuals think that credit is beneficial when used rationally. Non performing loans' affect are not limited to individuals, in addition, their negatively affect the whole society, especially the family. Men experience problem loans at higher rates than women, and low-income groups than high-income groups. The increase in non-performing loans is attributed to the economic difficulties experienced in the country and the consumption habits of the society. For individuals who think that the credit system in the country should be revised in favor of the consumer, the determining factor in credit transactions stands out as expendable income.