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Banks in Russia are reluctant to give loans to individuals
Russian banks are reluctant to give loans to individuals. In April, a minimum level of approval for loans was recorded. Only people with perfect credit history can get them.
As the Kommersant citing data from the National Bureau of Credit Histories, in April only one in five borrowers received approval. This is the minimum indicator for the history of observations of the bureau - since 2017. The share of mortgage approvals decreased to 55% compared to April last year, as well as this March. Consumer loans receive less than 20% of borrowers.
In the opinion of Gennady Shinin, head of the group for providing services to the financial sector in the CIS countries E&Y, Gennady Shinin, banks in a period of economic instability always tighten requirements for borrowers. Experts do not forecast an increase in the share of approved loan applications in the near future, banks will wait for a full recovery of business activity and household income.
In April, Russia began to issue loans for salaries under 0%. The measures were taken because of the coronavirus pandemic and the worsening economic situation.