Translartion. Region: Russians Fedetion –
Sours: Mainfin Bank –
Why have credit card rates risen to record highs in Russia?
Rate increase credit cards – a trend expected in the second half of 2024. The average cost of servicing credit cards has come close to 40% per annum for a number of reasons:
increase in the key rate – in six months the Central Bank of the Russian Federation raised the rate from 16 to 21% per annum; low profitability on previously concluded contracts – due to high rates banks are trying to increase the marginality of portfolios; reduction of grace periods – previously banks offered borrowers a long interest-free period, but such conditions do not correspond to the new reality; revision of the procedure for calculating the APR by individual creditors – previously the regulator caught banks in the incorrect determination of the indicator.
By the end of 2024, the average cost of lending in the bank card segment increased to 38.8%, over 12 months the indicator increased by almost 10%. Similar dynamics are observed in other industries – PSC by loans cash increased by 9% (to 37.5%), car loans – by 5% (up to 24%), mortgage programs, including loans with state support – by 7% (up to 18%).
What does the credit card market have in store for the foreseeable future?
Experts are confident that the cost of using borrowed funds on credit cards will continue to grow in the coming months – Russians can expect an increase in the indicator by another 3-5 percentage points. At the same time, much depends on the decision of the Central Bank of the Russian Federation on the key rate – the next meeting will be held on February 14: it is difficult to predict the dynamics yet, since the situation on the market is ambiguous.
“In the second half of the year, it was not difficult to predict the growth of the key rate, but now the decision of the Central Bank of the Russian Federation is not so predictable, so banks will not rush to revise the conditions – the change in tariffs will occur after the regulator’s meeting,” the experts noted.
Russians who continue to use credit cards even with high interest rates are advised to offset costs through loyalty programs – receive cashback and bonuses, including from the bank’s partners, and also try to pay off debt during the grace period.
12:00 28.01.2025
Source:
Please note: This information is raw content directly from the source of the information. It is exactly what the source states and does not reflect the position of MIL-OSI or its clients.
Please Note; This Information is Raw Content Directly from the Information Source. It is access to What the Source Is Stating and Does Not Reflect
HTTPS: //Mainfin.ru/novosti/rastut-kak-on-grooves-boards-on-loans-cards-in-rf-dostille-40