Cash loans held by Serbian households totalled RSD 1,079.44 billion, or approximately EUR 9.2 billion, at the end of October, according to the Association of Serbian Banks (UBS). The outstanding balance was 17.6% higher than a year earlier, making cash borrowing the largest category of household credit in the latest report.
The euro equivalent is based on an indicative exchange rate of RSD 117.5 per euro. Cash loans accounted for just under half of total household bank debt, which stood at RSD 2,211.71 billion at the end of October.
Cash Lending and Other Household Credit
Unlike mortgages, cash loans are generally not linked to a specific property purchase. Borrowers can use the funds for household purchases, refinancing existing debt and other expenditure, although the UBS figures do not specify how the money was spent.
Housing and home-improvement loans made up most of the remaining household credit balance. The expansion of both cash and housing-related borrowing indicates that growth in household lending extended across more than one financing category.
The aggregate outstanding balance does not show how many borrowers took on additional debt during the reporting period. Changes can reflect new lending, refinancing, maturity extensions or the replacement of more expensive obligations, as well as borrowing by households entering the credit market for the first time.
Without detailed information on loan originations, borrower income groups and lending conditions, the overall balance does not establish which of these factors contributed most to the increase.
Household Repayment Performance
UBS reported that payment delays exceeding 60 days accounted for 1.1% of outstanding household loans. This share was below the arrears proportions recorded for companies and entrepreneurs, although the measurement rules differ between borrower categories.
The repayment indicator provides a separate measure of household credit performance as cash lending continues to expand. Its development, alongside changes in household income and borrowing costs, will be relevant to assessing the sustainability of consumer credit growth.
The wider economic impact also depends on how additional borrowing affects domestic demand. Consumer loans can support household expenditure, but the aggregate lending figures do not establish whether the funds are being used for consumption, debt consolidation or other purposes, nor do they indicate an expansion of export capacity.
