The trend of Russians taking out multiple loans has accelerated, with the number of people issuing five or more loans doubling over the past two years. This development is reported by RBC, drawing on data from the Scoring Bureau, a credit history agency. The data point to a widening footprint of indebtedness among households, driven in part by changes in consumer credit access and payment behavior observed over the period.
By the end of 2023, the share of bank customers with five or more loans stood at 8.6 percent, while the corresponding figure for the end of 2021 was 4.7 percent. Additionally, the proportion of borrowers who carry three or more loans reached 28.6 percent at the close of the previous year. These figures illustrate a sustained rise in debt levels, reflecting a broader shift in lending practices and consumer borrowing choices in the late 2020s.
Debt levels among Russian residents have climbed consistently since 2019. The high point occurred when the share of borrowers taking out three loans within a single calendar year reached 12.6 percent, a notable increase of 1.1 percentage points. The five-loan segment also showed strong growth, rising to 7.1 percent, up by 1.1 percentage points, while the four-loan category climbed to 6.7 percent, an increase of 1.2 points. In 2022, the aggregate data indicate a further expansion of borrowing, highlighting a period of expanding credit availability and shifting consumer finance dynamics across the country.
Analysts attribute much of the rise in the number of individuals with five or more credits to the proliferation of credit cards, which have broadened the means through which consumers access short-term financing and spread payments across multiple accounts. At the same time, experts emphasize that there has not been a corresponding uptick in overdue loans, suggesting that many borrowers are managing repayment within their current income and credit limits rather than defaulting. This nuance points to a change in borrowing patterns rather than a deterioration in credit quality, at least in the near term.
There is also evidence that Russian banks are recalibrating their mortgage offerings for new housing projects. In January 2024, the average approval rate for preferential mortgages declined to 59 percent, signaling a tighter stance on government-supported housing incentives and a more cautious approach to underwriting in the housing market. This shift may influence household decisions about borrowing, housing tenure, and overall debt composition as buyers weigh the costs and benefits of different financing channels. In this environment, consumer credit remains a relevant option for many households, even as banks pursue more selective lending criteria and risk-based pricing that reflects evolving macroeconomic conditions and regulatory guidance.