Bank and MFO borrowers number 46 million: data from CHBs
The number of borrowers of microfinance organisations (MFOs) is growing faster, compared to that of banks. Besides, the overall number of bank borrowers is up because of mortgages. These are new data from credit history bureaus (CHBs).
The profile of mortgage borrowers is changing gradually. There is an increasing number of people who have other outstanding loans in addition to a mortgage loan. In order to reduce current payments for borrowers, banks started to issue mortgage loans for 30 years more frequently. These loans accounted for 40% in 2022 Q4, compared to no more than 20% a year before. Furthermore, over 40% of the mortgage loans issued in 2022 Q4 will mature when one of the co-borrowers turns 65. The upward trend in extremely long-term loans might involve risks. The Bank of Russia will continue to monitor this situation and will take measures, if needed.
The average number of loans to be repaid by borrowers who raised a new unsecured consumer loan reached 2.7, which is a three-year high. This proves the reasonableness of the macroprudential limits introduced this year to control the level of borrowers’ debt burden.
More details are available in the information and analytical commentary Analysis of Retail Lending Trends Based on Credit History Bureaus’ Data for 2022 H2.