Romanians take out more and more consumer credit

Romanians are taking out more and more consumer credit. According to analysts, this is an effect of rising incomes and falling bank interest rates.

New consumer loans in lei granted to households in March reached a record high of almost 4.16 billion lei, according to data from the National Bank of Romania.

We are talking about a 70 percent increase compared to the level recorded in March last year, it is true, and in a context in which the average annual effective interest rate on consumer loans in lei then exceeded 14 percent compared to a level of less than 11.3 percent per year, recorded in March 2024.

The value of new consumer loans to the general public in March this year even exceeded that of new housing loans in the same period, which stood at only 3.84 billion lei.

Analysts point out that the recent income increases have boosted consumption in Romania, and its evolution will contribute to economic growth, but will also have an impact on inflation, which is slowing down compared to previous expectations.

Translated by: Radu Matei