The maturity of vehicle loans continues to grow in Russia; banks are increasing the share of “long” loans of 7 years or more for the purpose of additional interest payments; In February 2024, the average vehicle loan maturity reached a record 5.47 years. writes about this RIA News According to data from the National Bureau of Credit Histories (NBKI).
As NBKI Marketing Director Alexey Volkov said, last year the figure increased by 9.6% compared to 4.99. The number and share of “long” vehicle loans in banks’ portfolios increased.
Extending loan maturities is in the interest of banks as it will bring more interest income. However, it can also be useful for borrowers whose monthly payments are decreasing by spreading payments over a longer period.
VTB confirms the growing popularity of car loans with a maximum of 7 years. At the end of the beginning of 2024, almost every second car loan from this bank was made subject to maturity; the share of such loans increased by almost 9 percentage points. Compared to 2023.
Rosbank also notes that the demand for “long-term” vehicle loans has increased due to the economic situation. In the January-February 2024 period, 54.7% of the issuances in the new automobile segment were 7-year loans and 11.5% were 8-year loans. In comparison, in 2023 these shares were 38.3% and 8.6%, respectively.
Rosbank stated that the demand for loans with a maximum period of 8 years has shown a strong increase, especially in the second-hand car segment, which is due to the desire of borrowers to reduce the monthly burden in the face of high car prices.
Increasing the term allows you to significantly reduce the size of the regular payment, but leads to significant overpayments due to the accrual of interest over a long period of time. Analysts warn that such “extended” loans carry additional risks for borrowers.
Before that, it was known that the Russians. stopped Pay attention to microcredit rates.
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Source: Gazeta
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