Consumer Credit in Russia

2020 IMPACT

Uncertainty over COVID-19 limits loan demand and increases defaults

The impact of the COVID-19 pandemic and consequent economic downturn has limited demand for consumer credit in Russia. Driven by the economic context, demand for consumer credit has suffered from a significant drop in consumer confidence and willingness to purchase expensive items with credit.

Demand for auto loans hit hard by decline in consumer confidence

Auto lending in Russia was hit particularly hard by the COVID-19 outbreak, with sales of new cars crashing throughout the country and demand for loans thus plummeting. Indeed, car sales were already declining in the country before the pandemic, with the government supporting the industry with subsidised programmes.

Government implements various measures to boost confidence

In response to the current crisis, the Russian government is taking a number of measures in a bid to stimulate demand and support industry players. For example, in order to support auto lending, the government will continue to offer generous subsidies.

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