[Economy 365]

The proportion of credit loans used for living expenses among the bottom 20% in terms of both assets and income has reached its highest level since statistics began.

According to a survey on the purposes of credit loans for the bottom 20% by assets last year, securing living expenses was the most common at 45.3%.

This is the highest figure recorded since statistics began in 2017.

Among the bottom 20% by income as well, securing living expenses accounted for 38.2%, the largest share among credit loan purposes and an all-time high.

In contrast, the proportion of credit loans used for living expenses among the top 20% by assets stood at a mere 15.1%, with securing business funds being the most common at 34%.

Because credit loans often carry higher interest rates than secured loans, the repayment burden on vulnerable groups can grow faster during periods of rising interest rates.

Experts pointed out that the government should strengthen direct support or guarantees for low-income loans to prevent people from relying on loans for living expenses.

*This article was produced with AI audio.