The central bank’s official interest rate is 19%: should Russians take out loans?

Consumer and auto loans

Experts interviewed by RB.RU recommend refraining from applying for consumer loans if possible. If large expenses cannot be avoided, on the contrary, do not delay registration due to the expected increase in rates in the future.

Vladimir Chernov, an analyst at Freedom Finance Global, recommends not taking out loans. According to him, the population is adopting a model of saving behavior, which is why the volume of bank deposits is growing and consumer spending is decreasing.

If you are planning a major purchase using a loan, it is better not to delay registration in order to correct the current conditions before a possible rate increase, agrees Vadim Shamin, Deputy Head of the Retail Business Development Department at Svoy Bank JSC. The company did not rule out a further increase in the official interest rate up to 20-22% with corresponding changes in interest rates on deposits and loans.

The chairman of the board of the International Confederation of Consumer Societies (ConfOP), Dmitry Yanin, warns against borrowing in the current situation. “If people have such an opportunity, it is better for them to refuse to buy with earthly means. After all, loans with rates above 20% per annum will be quite difficult to service,” the expert believes.

Credit cards and microloans

Credit cards can be used if the loan can be paid off before the period in which interest begins to accrue, which is typically about 55 days, says Chernov, an analyst at Freedom Finance Global.

In other cases, according to Chernov, the interest rate on credit cards can reach 30-50% per annum, and it is not recommended to use them in the context of high loan overpayments;

Vadim Shamin, deputy head of the retail business development department at Svoy Bank, believes that even with the increase in rates, the popularity of credit cards will not decrease. The greatest demand is for products with a long interest-free period, which allow you to use borrowed funds for several months and repay the money on time without paying additional interest.

Moneyman CEO Alexander Pustovit believes that for those who need “short” money for a short period of time, for example, within 30 thousand rubles for up to 30 days (PDL loans “before payday”), the use of microcredits can be useful.

“The cost of a microcredit, unlike a bank loan, is not strictly tied to the official interest rate and does not fluctuate with it,” Pustovit notes. — Recently, a segment of medium-term installment loans has developed on the microfinance market: up to 100,000 rubles for a period of up to one year. These products have parameters as close as possible to bank ones, and their interest rates are usually lower than those of PDL loans.”

Who should definitely not take out a loan?

Experts interviewed by RB.RU warn that a person who decides to apply for a loan should have a stable income and a financial cushion of at least 6 months of income.

It is not advisable to consider new loans to citizens with low incomes and high credit burden, adds Vadim Shamin, deputy head of the retail business development department at Svoy Bank.

“In the context of increasingly strict limits and strict rating policies of banks, it will be more difficult for them to obtain approval for a new loan. Moreover, at the current pace it is important to avoid an increase in the debt burden, as this limits the possibilities of new loans,” Shamin explained.

• The maximum rate level was set by the Bank of Russia in March 2022: 20% per annum. On August 29, the Central Bank announced that it will allow the indicator to grow to 22% in 2025. The decision on the next rate increase may be made on October 25, the Central Bank’s press service reported.