The share of Russian retirees who have received a bank loan since the onset of the crisis has grown by 3.8 percentage points to 16%. At the same time, the proportion of working people who have taken credit declines. According to experts, banks are changing their lending approach to older people, for whom loans were not practically available before. According to forecasts, within a year the proportion of pensioners among borrowers will increase to 20%.
The share of retirees among borrowers was estimated by Efifax after an analysis of 244.1 million credit histories. According to company data, pensioners were 12.2% of borrowers in 2014, 13.9% a year later, 15.3% in 2016, and 16.1% in 2017.
Several years ago, most banks’ programs implied that each individual credit had to be repaid until the age of 65. Now banks have rethought the approach and retirees can borrow money on a special program (up to 300,000 rubles with interest rates ranging from 14.99-22.99% at the age of the borrower up to 70) and on classic loans at comparable rates.
According to Dmitry Gusner, Managing Director of Binbank, the financial institutions willingly provide retirees with a variety of financial services, including loans. According to him, retirees are characterized by highly disciplined behavior. They often have their own home or villa, stable income (pension) and sometimes – financial support from children and grandchildren who are willing to become guarantors.
Health and low incomes are major risks for lending to retirees.
If something happens to the borrower, the debt is transferred to children and grandchildren, which complicates the process for the bank.
Nevertheless, the experts expect the pensioners’ share among borrowers to rise from the current 16 to 19-20%, and there are no problems with the return of the loans so far.