Personal loans: The market will continue to grow.

2024 was a year of recovery for the consumer credit market . The ECB cut its key interest rates. Banks adapted to a more diversified customer base, reversing the negative trend of recent years, when, especially during the uncertain times of Covid and post-Ukraine inflation, a cautious approach to granting credit to households prevailed. The personal loan market was very positive, recording a significant increase compared to 2023 (the value of transactions disbursed increased by 12%) compared to an increase in the number of transactions financed (+16%), with a general trend toward slightly smaller loans. The average market loan in 2024 stood at €8,647, a 3.2% decrease compared to 2023. Kìron Partner SpA, the Tecnocasa Group's credit brokerage company, continued to dominate the consumer credit sector in 2024, consolidating a range of products that complements home loans with solutions dedicated to families' liquidity needs, from home renovations to car purchases, and even spending on goods and services. This strategy led to a 55% increase in overall lending compared to 2023, marking a growth trajectory expected to continue in 2025. Kìron Partner SpA has nearly twenty years of experience in the personal loan sector and has survived several economic cycles and economic times. This experience gained in the lending sector has allowed the company to collaborate with numerous credit institutions: both with the main market players, highly specialized operators, and with smaller financial companies, which have smaller market shares but offer niche products.

The range of personal loan products is truly extensive and diverse, which is why Kìron and Epicas credit advisors can provide the best advice and propose the solution best suited to their individual needs. Furthermore, thanks to ongoing training, the Group's credit brokers can provide the right advice for a customized loan, tailored to the client's needs. A personal loan consists of financing a sum of money that the client can use to meet personal or family needs (for example, housing, healthcare, or childcare expenses). The main differences from other credit products are flexibility, speed, and simplicity. Flexibility because it is a product that adapts to the client and their needs (the client can always repay it early, even partially, consolidate it, or refinance it); speed because it is a very fast product, with applications processed in just a few days; simplicity because the application process is very simple and few documents are required. In 90% of cases, an identity document, health card, and proof of income are sufficient (for example, the last two pay slips for an employee, the last two pension slips for a retiree, or the latest single form for a freelancer or self-employed individual). Thanks to an analysis of loan volumes brokered by its operators in 2024, Kìron Partner can highlight, in line with market trends, a growing preference for longer repayment plans, which promote greater installment sustainability. The average repayment term increased from 74 months in 2023 to 92 months in 2024. The average loan copayment also increased, reaching €13,267 (+6% compared to 2023), remaining significantly above the market average (+53%). Fifty percent of financing transactions were disbursed in Northern Italy, 18% in Central Italy, and 22% in Southern Italy and the Islands. Regarding the geographic origin of clients, 73% are Italian, 11% European, and 16% non-European. The presence of foreign clients is particularly significant in Northern Italy, where they represent 38% of the total, and Central Italy, where they reach 33%. In contrast, in Southern Italy and the Islands, their share is less than 10%.

In 2024, the recovery in household purchasing power, supported by a gradual reduction in interest rates, strengthened demand for financing. This positive trend is expected to continue throughout 2025, albeit with differences across segments. While overall consumer credit, including personal loans, is expected to grow by approximately 4.9%, personal loans alone have already seen a significant acceleration in the early months of the year, increasing approximately 15% in the first quarter. Despite increased caution among lenders regarding this type of loan, traditionally considered to be higher risk, and the introduction of European directives imposing more stringent requirements for credit assessments, the personal loan segment continues to show growth. This is an area that will continue to be a focus of our development strategy, and we remain vigilant and committed to it.

President of Kìron Partner SpA – Tecnocasa Group

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