Number of borrowers and their debt burden decrease in 2024 H2
For the first time since 2022, the overall number of borrowers that are banks’ and microfinance organisations’ customers dropped by 0.5 million over the six months to slightly exceed 50 million, according to the data from credit history bureaus.
Banks started to limit the risks of households’ over-indebtedness by reducing the average amount of a cash loan (which was cut by 20%) and its term (the percentage of loans for up to one year increased by 13 pp to 21%).
In 2024 Q4, the number of borrowers with the highest debt burden and no less than three loans was down by 0.5 million. However, over-indebted borrowers still account for around half of outstanding retail loans.
The number of mortgagors remained at the same level of 10.2 million, while banks granted fewer mortgage loans maturing in over 30 years. The percentage of borrowers taking out a consumer loan before applying for a mortgage declined, meaning that borrowed funds were less likely to be used for a down payment.
More details are available in the information and analytical commentary Analysis of Retail Lending Trends Based on Credit History Bureaus’ Data for 2024 H2.