Banks are increasingly issuing loans to customers off the street

In the first half of 2016, the level of approval of applications for unsecured loans for clients from the street was 40%, while in 2015 this figure did not exceed 10%. These data are presented in the study of the collection Agency “Sequoia Credit Konsolideyshn”.

After the crisis in the consumer lending segment in 2013, the banks reduced lending to borrowers with streets and were inclined to make loans to two categories of clients, payroll clients and those who already had in a particular Bank a positive credit history, says the President of the collection Agency Elena Dokuchaeva. But this year, along with the increasing approval of applications from street customers, softened and requirements to the financial position of retail borrowers, says Dokuchaev.

The delay in consumer lending is growing the fastest. According to the NCB on 1 June 2016, late payments on consumer loans amounted to 18.6% of total outstanding loans in this category, an increase from the beginning of the year, down 1.6 percentage points the Share of bad loans increased from the beginning of the year by 0.2 percentage points to 8.5%, and delinquency on mortgage loans on June 1, was 4.1%, an increase from the beginning of the year by 0.2 p. p.

On 19 July, the home Credit Bank, which in 2013 has stopped working with the street, announced the resumption of lending to this segment. The Bank does not lend to the customers from the street three years — from mid-2013. Now, according to predpravleniya Bank “home Credit” Yury Andresov, the Bank changed the risk model, improved work quality control customers. However, the level of approval customers from the street, according to the expectations of Chairman of the Board of the Bank Artem Aleshkin, will not be high this year and will be 15% of the total order flow.

Surveyed banks that didn’t close all the lending streets, now showing a fairly high level of approval of applications for this segment of borrowers. For example, Bank East Express now approve applications 80% of applications from street customers, VTB Bank — more than 50%, Gazprombank — 30%.

The increase in the percentage of approvals of loans to customers with “street” influenced both the stabilisation of the macroeconomic situation and limited opportunities to build their portfolios due to high-quality borrowers, said a senior analyst group Finance ACRES Mikhail Doronkin. “Quality growth” today is possible either by increasing limits to existing borrowers, either by lending to customers under the “salary” projects, which, however, is irrelevant for retail monolinuron not working with legal entities, notes Doronkin. “However, now banks will work with street retail in the test mode to determine the risk level”, — concluded the analyst.