Consumer behavior towards loan interest rates in Kosovo

Abstract

The main purpose of this study was to study the consumer behavior on the loan interest rates in Kosovo. This study is based on the data collected through direct interviews with consumers who have loans from commercial banks in Kosovo. The results obtained show that 98.1% of respondents think that bank in Kosovo offer loans with high interest rates. Results obtained from respondents indicate that 96.1% of them think that it is reasonable that banks reduce/lower interest rates and offer loans with lower interest rates, while another interesting result shows that it is an opinion that banks have agreements among themselves in order to keep this high rate of interest, 49.1% of respondents are of the same opinion. Commercial banks operating in Kosovo have justified these high rates with the high risk of loan return, but 51.7 % of respondents do not share the same opinion as banks that the risk of return is the reason for high rates of interest, since commercial banks that operate in Kosovo, stand much better that other Balkan countries in bad loan ranking.