Outstanding cash loans to Serbian households reached RSD 1,079.44 billion (approximately EUR 9.2 billion) at the end of October, increasing by 17.6% year on year, according to the Association of Serbian Banks (UBS). Cash lending remained the largest individual category of household borrowing in the latest credit data.
The euro equivalent is calculated using an indicative exchange rate of RSD 117.5 per euro. Unlike mortgage financing, cash loans are generally not linked to a specific property purchase and can be used for various household expenditures.
Cash Lending Accounts for Nearly Half of Household Debt
Cash loans represented just under half of total household borrowing, which stood at RSD 2,211.71 billion at the end of October.
Housing and home-improvement loans accounted for most of the remaining household debt. Both categories recorded strong growth, indicating that the expansion of household credit extended across different types of financing.
Cash loans can finance consumer purchases, debt consolidation and other expenditures. However, the UBS figures do not specify how borrowers used the funds, meaning the increase cannot independently establish whether households were financing discretionary consumption or managing existing financial obligations.
The growth in outstanding balances also does not necessarily correspond to the number of people taking on additional debt. Changes can reflect refinancing, maturity extensions and the replacement of more expensive borrowing, as well as new credit commitments.
Household Repayment Performance
The expansion of consumer lending places repayment performance among the key indicators for monitoring household credit exposure.
According to UBS, payment delays exceeding 60 days accounted for 1.1% of outstanding household loans. This was below the arrears shares recorded for companies and entrepreneurs, although the measurement criteria differ between borrower categories. The reported figure provides an indication of household repayment performance alongside the rapid expansion of cash lending, but does not establish the financial position of individual borrower groups.
Consumer Credit and Household Purchasing Power
The development of cash lending also has implications for domestic demand, as consumer credit can support household spending without necessarily contributing to increased export capacity. Developments in wage growth, real purchasing power and borrowing costs will remain relevant to assessing household debt sustainability as the Serbian credit market continues to expand through 2027.
