Despite higher interest rates and tighter lending standards, the demand for loans among Russians remains resilient. This trend is analyzed by Frank Media, referencing Frank RG calculations as the basis for its assessment.
In February 2024, the total value of loans issued to residents surpassed 1 trillion rubles, marking a 22.6% rise or 189 billion rubles above January. Compared with February 2023, the increase stood at 3.3%. The month-to-month acceleration suggests sustained consumer borrowing activity even as monetary conditions tightened.
The most pronounced annual growth occurred in the auto loan segment. In February, the lending volume for vehicles reached 171.4 billion rubles, up 115.6% year over year and 29.4% higher than January, signalling a robust revival of the car market. Analysts attribute this uptick to a combination of government support measures, automakers’ programs, and improved consumer sentiment. On a monthly basis, the auto lending figure rose by about 28% as demand rebounded and supply chains normalized.
Mortgage lending showed comparatively modest dynamics. The volume of mortgage originations rose 16.9% from January, reaching 322.5 billion rubles in February, but still fell 24% year on year. The slower growth is linked to tighter concessional mortgage conditions and higher market rates, now hovering in the high teens per annum, which dampens new home loan activity for many borrowers.
Cash loans climbed 27.6% through the month, totaling 495 billion rubles. The only segment to contract was point-of-sale (POS) lending, which fell 9.5% to 35.7 billion rubles, reflecting shifts in consumer payment behavior and merchant financing terms.
Experts interpret this sustained demand as a response to banks’ tightened lending criteria at the end of 2023. The Central Bank’s data indicate that the degree of stringency in the retail segment was higher than in the second quarter of 2022, underscoring a cautious lending environment that still leaves room for steady household borrowing in targeted sectors.
In recent periods, Russian households have remained vigilant about bank practices, with many consumers evaluating card-related protections and deposit guarantees to ensure financial security amid rate volatility. Industry commentators stress the importance of clear disclosure on card debits and consumer rights, as these issues influence trust and borrowing decisions. Banks have continued to emphasize transparent terms for deposits and loan products, aiming to balance liquidity with responsible lending to households.
Overall, the data illustrate a nuanced lending landscape in Russia: while mortgage activity slows under tighter terms and higher rates, consumer and auto lending maintain momentum, supported by policy measures and a gradual economic stabilization. Analysts expect this pattern to persist, with borrowers prioritizing essential purchases and shorter-tenor loans, even as lenders remain selective in riskier credit segments.