Consumer loan rates in Russia hit 44% and repayment problems grow
As of the beginning of November, consumer loan rates in Russian banks ranged from 25% to 38% per annum, but by 19 November, the maximum rate had risen to 44%.
Source: The Moscow Times
Details: In October, Russian banks issued 1.94 million cash loans to individuals totalling US$3.06 billion. This is 28% less than in September and 43% less than in October last year.
At the same time, the level of payment discipline of Russian bank customers has fallen to its lowest level since the pandemic in 2020. In eight months of 2024, 800,000 Russians became overdue, and the total number of defaulters reached 6.2 million.
It is noted that almost half of borrowers have problems with loan repayment: 35% have minor difficulties, 12% have serious ones, and 1% admit that they can no longer pay at all.
Background: The Central Bank of Russia has decided to raise its key policy rate by 2 percentage points at once - to a record 21% per annum.
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