“Consumer loan activity in May 2023 shows a marked surge”

Consumer loan activity in May 2023 shows a marked surge

The total volume of consumer loans issued in May 2023 surged to a record level, reaching 662.5 billion rubles. This figure represents a 3.4x year‑over‑year increase, driven by strong demand across households and sustained lending momentum in the banking system.

Compared with April, monthly consumer lending rose by 11 percent, driven by a broad-based pickup in borrowing. The May 2023 level mirrors a peak last seen in August 2021, when the market also posted a very high monthly cash loan total around 644.1 billion rubles. The current trend confirms a renewed appetite for personal financing among borrowers and a robust lending environment within the country.

On the volume side, the number of granted consumer loans climbed to about 3.3 million in May, reflecting a 19 percent rise from April. Yet the average loan size declined slightly, settling at roughly 200.9 thousand rubles, about 6.4 percent below the April figure. This shift suggests a broader distribution of credit to more shoppers, with many opting for smaller installment loans alongside larger ticket purchases.

Mortgages also moved higher, increasing by around 4 percent to 591.5 billion rubles, marking the strongest monthly level observed since the start of the year. Auto loans followed suit, reaching 117.9 billion rubles, a new monthly record and underscoring the continued strength of vehicle financing in the market.

In May there was a notable rise in the average size of consumer loans, with the figure hitting a record level on the domestic market. The latest data point shows an average loan size near 328.5 thousand rubles, exceeding the March level by a meaningful margin. This pattern indicates ongoing consumer confidence and willingness to finance purchases through credit, even as loan portfolios expand across segments.

Overall, May 2023 saw a broad expansion across consumer credit categories, including non‑bank loans and secured borrowing. The combination of higher loan volumes, more borrowers, and a modest dip in average loan size paints a picture of a market leaning into credit to support demand in household purchases, durable goods, and big-ticket items. The trajectory suggests continued willingness among lenders to extend credit while borrowers seek convenient financing options to fund everyday needs and larger expenditures.

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