Credit applications by Italian consumers: loans grow in 2021 but mortgages stay flat

According to the latest update of the CRIF Consumer Credit Barometer, following the instability caused by the pandemic, 2021 was a year marked by gradual economic recovery, contributing to an increase in the propensity of Italian consumers to apply for credit.

More specifically, there was an increase of +7.1% for personal loan applications and +36.1% for retail finance for the purchase of goods and services compared to the previous year, compared with a slight decrease of -0.2% for mortgage applications compared to 2020.

2021 was also characterized by a conflicting trend in the average amounts requested, which for mortgages was €139,110 (+4.1% on the previous year), compared to €12,909 for personal loans (+3.3%). By contrast, the value of retail finance applications fell by -6.8%, standing at €6,249.

In a scenario that is gradually improving thanks to the strengthening of the ongoing economic recovery and the implementation of the National Recovery and Resilience Plan in Italy, there is expected to be a further growth in the demand for credit by consumers in 2022, with an acceleration in retail finance in particular, which will continue to benefit from attractive terms and cost of borrowing. Assuming no new shocks occur, the sustainability of the financial commitments of consumers should remain high. At the time of last survey in 2021, the default rate stood at 1.2%, hitting record lows in recent years. This confirms that Italians are able to adopt mature and informed behavior when planning the household budget.