Consumer Credit in Taiwan

2020 IMPACT

Card lending sees slower growth as consumers exercise caution in their spending and borrowing

Card lending is expected to account for 68% over total gross lending within consumer credit in 2020, but only 4% of the overall outstanding balance. This reflects the way in which consumers in Taiwan utilise credit cards.

Government and banks offer incentives to borrow

To help stimulate the economy in the face of COVID-19, the government has taken a range of steps to support consumers and businesses. State-owned banks have been actively cooperating with the government to provide targeted relief measures on credit to small-and-medium-sized enterprises (SMEs) of severely affected industry sectors, with low-interest rates, extended repayment periods, online applications, and instant fund disbursement.

Consumers look to take advantage of government’s COVID-19 stimulus programme

Personal loans is expected to be the most dynamic category in terms of gross lending in 2020, with some consumers looking to take advantage of low interest rates and other government incentives to borrow. The government has also pushed for fintech innovations to speed up local applications.

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