In Russia, the length of repayment for equipment and furniture loans has lengthened to about 21 months, reflecting a notable shift in consumer credit behavior over the past half year, according to a local report citing the United Credit Bureau News.
Data from the recent months show that in January, point-of-sale loans, which are extended without an in-person visit to a store or the lender’s website, began with an average maturity of 21 months. A year earlier, that average hovered around twelve months. The typical loan amount for goods and services in January stood at 72 thousand rubles, up from 55 thousand rubles a year prior. This escalation in both term length and loan size marks a clear trend in consumer financing aimed at financing purchases when immediate cash outlays are less feasible for households.
Experts point to several factors behind the extended maturity of POS loans. Foremost is the rising cost of goods and services, which tends to push borrowers toward longer repayment horizons as monthly payments can be spread over more time. In addition, higher interest rates and macroprudential guidance from the Central Bank are part of a broader policy framework designed to ease debt pressure on households and mitigate the risk of rising defaults. These measures create an environment where lenders recalibrate terms to maintain affordability and sustain credit flow.
Banks have responded to the tightened payment environment by implementing strategies to prevent monthly obligations from increasing too sharply. As a result, lenders have begun offering longer-term loans to customers, balancing the need to preserve affordability with the requirements of prudent risk management. This shift helps households manage their budgets more effectively while still accessing credit for essential purchases and unexpected needs.
In the mortgage sector, forecasts indicate a potential slowdown in issuance to Russian borrowers as the landscape for property financing remains cautious. Analysts suggest that housing loans may experience pressure as the cost of borrowing and the overall macroeconomic backdrop influence decision-making among both lenders and consumers. The evolving regulatory and interest-rate trajectory continues to shape borrowing patterns across multiple credit segments.
Historically, the Central Bank of the Russian Federation raised the key rate to a level of 16 percent, a move that reverberates through the credit market by influencing both lender policies and consumer demand. While some borrowers look to extend repayment terms to maintain manageable monthly payments, others adjust their plans in response to the higher cost of borrowing and the broader economic climate. This dynamic environment underscores the interconnectedness of monetary policy, consumer behavior, and lending practices as the country navigates inflation pressures and financial stability goals.