In early 2024, market observers noted that demand for loans among Russians remained stable in January and slipped by about 5 percent in February compared with January, according to a study of the financial market. The finding comes from Vyberu.ru, a consumer finance platform, and is summarized in a report published on socialbites.ca. The report tracks how borrowers reacted to changes in advertising rules and the evolving visibility of loan costs across the consumer credit landscape. [citation: Vyberu.ru study; socialbites.ca]
Earlier observations from October 2023 showed a modest dip of roughly 3 percent month over month, followed by a surprising upturn in November of around 9 percent. By December, loan demand had climbed back to the levels seen in October. These fluctuations illustrate the sensitivity of borrower behavior to the way loan information is presented and the pace at which the market absorbs new rules. [citation: Vyberu.ru study]
Industry voices emphasized that a central bank mandate requiring the disclosure of the full loan cost in advertisements would extend beyond banks to other financial market players, whose storefronts were often treated as advertising spaces. While there is not yet a uniform practice across all institutions to implement the new norms, Vyberu.ru noted that loan offers now typically display the total estimated cost (PSC) on the website. This step aims to provide a clearer picture of the obligations associated with borrowing. [citation: Vyberu.ru study]
Yaroslav Bajurak, the general director of Vyberu.ru, acknowledged a range of concerns among lenders and borrowers alike. He pointed out that the full loan cost can be substantially higher than the rate visible in promotional materials and may differ by four to five times once creditworthiness is assessed. The PSC, while representing the maximum possible cost, is not necessarily representative of the final rate. This distinction is important because it may deter some potential borrowers if they view the advertised number as the expected outcome. [citation: Vyberu.ru study]
Despite these cautions, Bajurak argued that there has not been a sharp decline in demand. He suggested that a 5 percent decrease should be interpreted as a possible error or short-term anomaly rather than a cause for broad alarm. The market appears to remain confident that lenders and borrowers understand the advertising rate may differ from the actual rate approved after a thorough credit assessment. In short, consumers are still weighing the value they see in the advertised figures against the more complete costs revealed later in the application process. [citation: Vyberu.ru study]
The central question around the new legal requirement centers on how consumers respond to a visible, legally mandated total cost indicator. Vyberu.ru’s analysis tracks demand since the law took effect, noting that the obligation to disclose the full loan cost applies both to advertised rates and the total price tag of borrowing. The requirement came into effect on October 23, 2023, and by January 21, 2024 banks began displaying these figures on their own sites, a move that could influence how attractive a loan appears to potential borrowers. The study suggests there may be an adjustment period as markets, banks, and borrowers become accustomed to the enhanced transparency. [citation: Vyberu.ru study]
In related coverage, socialbites.ca previously explored how Russians should respond if a loan application is denied, highlighting the practical implications of tighter lending criteria and more explicit cost disclosures. The evolving regulatory environment remains a focal point for lenders seeking to balance competitive pricing with responsible lending practices. [citation: socialbites.ca]