Loan volumes in Krasnodar Territory have experienced a significant reduction, amounting to a decrease of 2.5 times.
In Russia, the consumer loan market has taken a major hit, with loan volumes plummeting an astonishing threefold since 2024.
On June 19, the National Credit History Bureau (NCHB) disclosed the data on consumer loans issued in May, revealing a staggering decrease from 571.2 to 213.8 billion rubles – a 2.7x reduction.
As you might expect, the cities leading the pack in loan issuance are the usual suspects: Moscow, Moscow Oblast, St. Petersburg, Tyumen Oblast, and Krasnodar Krai.
Here's the lowdown: Moscow issued a whopping 25.4 billion rubles, Moscow Oblast came in second with 17.5 billion rubles, St. Petersburg took third place with 10 billion rubles, Tyumen Oblast followed closely behind with 9.1 billion rubles, and Krasnodar Krai wrapped things up with 8.8 billion rubles.
Digging deeper, Alexei Volkov, the Director of Marketing at NCHB, sheds some light on the reasons behind this slump. He points to the second half of 2024 as the starting point, marking the beginning of a downtrend due to an abrupt surge in interest rates and stricter credit limits by banks.
According to Volkov, the lending speed has remained steady since the spring of 2025. So, what's the buzz? With banks focusing on borrowers with high credit scores and a debt burden of no more than 50%, expect those consumer loans to go to citizens with top-notch credit reputations.
Now, Krasnodar has picked up some attention in the public eye. Not only has it landed among Russia's top cities for payday loans, but it also appears in the top three in this department, trailing only behind Moscow.
However, it's crucial to understand the forces at play behind this turn of events. The decline in consumer loan issuance is a ripple effect of several key factors:
- Hefty Interest Rates: The Central Bank of Russia has kept interest rates high as part of a broader strategy to keep inflation in check and steady the financial system.
- Strict Macroprudential Regulations: The Bank of Russia has tightened up these regulations, lowering banks' risk tolerance and resulting in a shrinkage of consumer lending.
- Economic Slowdown: The Russian economy has been going through a rough patch, facing external issues such as sanctions and internal economic hurdles. This, in turn, has produced a decrease in consumer confidence and spending, ultimately reducing loan demand.
- High Debt Service Costs: Consumers with high debt service ratios have been struggling to take on additional loans, particularly those with questionable creditworthiness.
- Rising Interest Rates: Higher interest rates not only boost borrowing costs but also discourage potential borrowers from pursuing new loans in certain sectors, such as car loans, where high interest rates have noticeably curbed demand.
Against this backdrop of monetary constraints, economic uncertainty, and cautious borrowing behaviors, the loan landscape in Russia is expected to undergo further transformations in the coming days.
The decline in consumer loan issuance in Russia can be attributed to several factors, including hefty interest rates, strict macroprudential regulations, economic slowdown, high debt service costs, and rising interest rates in various sectors like the automotive industry. With banks focusing on borrowers with high credit scores and a debt burden of no more than 50%, the banking and insurance industry may see a shift in consumer loans, favoring individuals with top-notch credit reputations. In the finance sector, this trend might result in increased scrutiny of loan applications and reduced loan volumes.
