Bank's Timeline for Decision on Consumer Loan Approval
Belarusian Consumer Loan Market Trends in 2025: Auto Loans, Unsecured Loans, and Domestic Goods
Belarus remains active in the consumer loan market, with the auto loan segment leading the way in Q1 2025. According to Natalia Konoplyannikova, Deputy Chairman of BNB Bank, the market has continued to show high demand for consumer loans, similar to the trend seen in 2024.
The increase in auto loan demand can be attributed to the growing car market supply and favorable terms. Although loan rates have risen, the demand for auto loans persists. The expansion of the auto loan segment is also due to changes in recycling fees, which led to an increase in loan issuance in February.
Unsecured consumer loans are also popular in Q1 2025, with activity increasing on the market for loans for domestic goods. Banks are offering lower rates for loans on Belarusian goods, creating a wider range and increased competition. As a result, consumers can expect favorable terms.
The portrait of a loan recipient in Q1 2025 remains largely unchanged compared to 2024. Men make up 60% of loan recipients, with most falling between the ages of 31 and 50. Most loans are taken out by residents of Minsk and the Minsk region.
"We are observing an encouraging trend: the income level of loan recipients is increasing and continued in Q1 2025," commented Konoplyannikova. When applying for a loan, clients place much importance on the loan terms, including the monthly repayment amount and the simplicity of the application process. The client's experience throughout the loan application process is becoming increasingly important.
BNB Bank is simplifying the loan process, offering a seamless mobile app experience for "Match" loans and loans for Belarusian goods. Clients can submit applications online and receive responses via SMS within 2-3 minutes. BNB Bank has also streamlined the process for auto loans with partners, allowing clients to receive funds for a car without leaving the showroom.
When assessing a client's creditworthiness, the bank considers their credit history and existing loans. This approach is designed to minimize risks for both the borrower and the bank, ensuring sound credit relationships. However, the final decision always lies with the client, who is in the best position to understand their financial situation and make informed decisions based on their unique circumstances.
Certain challenges arise in the Belarusian consumer loan market, such as increased delinquencies in auto loans. Although consumer credit growth is expected to slow to around 20% in 2025, it remains the dominant form of retail credit. Delinquencies in other loan categories, such as unsecured loans and loans for domestic goods, are minimal or on the rise, indicating resilience in these segments.
Overall, the consumer loan market in Belarus continues to evolve, with the auto loan sector showing signs of strain but other segments, such as unsecured loans and loans for domestic goods, growing in popularity due to increased disposable income, urbanization, and digital lending trends. As technology and flexible product offerings continue to drive consumer credit growth, the market is expected to remain robust in 2025.
[1] Consumer credit growth in Belarus is projected to slow to around 20% in 2025.[2] The consumer durable loans market, including loans for domestic goods, is expanding with a CAGR near 6% and is expected to reach $13.29 billion by 2029.[3] Delinquencies in auto and mortgage loans are reportedly increasing, signaling some stress in these segments.[4] Unsecured loans are rising in popularity, driven by younger generations and fintech-enabled lenders.[5] Unsecured personal loans are growing at a global level, with the global consumer durable loans market expanding as well.
In the evolving Belarusian consumer loan market, unsecured loans, particularly for personal finance and domestic goods, are experiencing increasing demand, growing at a CAGR near 6% and expected to reach $13.29 billion by 2029. Businesses are offering lower rates for loans on Belarusian goods, creating a wider range and increased competition, making it favorable for individuals seeking such loans.
As the consumer durable loans market expands, fintech-enabled lenders are contributing to the growth of unsecured personal loans globally, with unsecured loans becoming increasingly popular among younger generations in Belarus as well.
