Households hold significant consumer credit – growth rate has slowed

In May 2025, the stock of consumer credit granted to households by banks operating in Finland was EUR 17.6 billion, having contracted −0.7% year-on-year. The contraction of the consumer credit stock reflects the reduced use of overdrafts and card credit as well as lower drawdown volumes of unsecured consumer credit. Consumer credits granted by banks account for 63% of households’ total consumer credit stock.

In May 2025, households’ credit card credit stock[1] (EUR 3.6 billion) contracted −1,0%[2] year-on-year, as opposed to a growth rate of almost 6% in the same period a year earlier. At the end of May, 19% of the credit card credit was interest-free convenience credit and 81% was interest-bearing extended card credit. The volume of conventional unsecured consumer credit[3] drawn down from banks in January–May 2025 was 9% lower than in the same period a year earlier. The stock of unsecured consumer credit also contracted in May.

Among the different types of consumer credit granted by banks operating in Finland, only the vehicle loan stock showed positive year-on-year growth (7,5%) in May 2025. However, the growth rate has slowed down from a year ago. At the end of May, the stock of vehicle loans granted by banks was EUR 4.8 billion. Including vehicle loans[4] granted by other financial institutions, the stock of households’ vehicle loans totalled EUR 9.6 billion[5]. Vehicle loans constitute over one-third of households’ total consumer credit stock.

At the end of the first quarter of 2025, households’ total consumer credit stock was EUR 28.0 billion, and its year-on-year growth rate was 0.3%. Approximately half of the consumer credits (EUR 13.8 billion) was unsecured consumer credit (excl. vehicle loans). Among entities granting consumer credit, cross-border lending credit institutions and other financial institutions have recently increased their share (18%) of the total consumer credit stock the most.

The total consumer credit stock excludes consumer credits on debt collection companies’ balance sheets. A review of some consumer credit providers’ business models reveals that they generate a high volume of non-performing loans and sell them off the balance sheet, for example, to debt collection companies. The sale of non-performing loans partly contributes to the slower growth of the consumer credit stock. According to calculations based on the Positive Credit Register, at the end of March 2025, debt collection agencies had over EUR 1.7 billion of credits to consumers[6] on their balance sheet, a significant proportion of which is estimated to be consumer credit.

Loans

New drawdowns of housing loans by Finnish households in May 2025 amounted to EUR 1.3 billion, an increase of 12% on the same month a year earlier. Of the newly drawn housing loans, buy-to-let mortgages accounted for EUR 110 million. The average interest rate on new housing loans declined from April, to 2.77% in May. At the end of May 2025, the stock of housing loans stood at EUR 105.5 billion, with an annual growth rate of −0.3%. Buy-to-let mortgages accounted for EUR 8.9 billion of the housing loan stock. At the end of May, Finnish households’ loan stock included EUR 17.6 billion of consumer credit and EUR 17.6 billion of other loans.

Drawdowns of new loans by Finnish non-financial corporations in May 2025 totalled EUR 2,4 billion, including EUR 516 million of loans to housing corporations. The average interest rate on the newly drawn corporate loans declined from April, to 3.68% in May. At the end of May, the stock of loans granted to Finnish non-financial corporations stood at EUR 107.7 billion, including EUR 45.5 billion of loans to housing corporations.

Deposits

At the end of May 2025, the total stock of deposits held by Finnish households was EUR 113.8 billion, and the average interest rate on these deposits was 0.93%. Overnight deposits accounted for EUR 69.6 billion and deposits with an agreed maturity for EUR 15.1 billion of the total deposit stock. In May, Finnish households made EUR 1.3 billion of new agreements on deposits with an agreed maturity, at an average interest rate of 2.25%.

Further information

• Markus Aaltonen, tel. +358 9 831 2395, email: markus.aaltonen(at)bof.fi,
• Olli Tuomikoski, tel. +358 9 183 2925, email: olli.tuomikoski(at)bof.fi.

The next news release on money and banking statistics will be published at 10:00 on 28 July 2025.

Related statistical data and graphs are also available on the Bank of Finland website: https://www.suomenpankki.fi/en/statistics.

[1] Credit card credit granted by credit institutions operating in Finland.

[2] The calculation of the year-on-year accounts for purchases and sales of loans between credit institutions and other entities.

[3] Excl. overdrafts, credit card credit and vehicle loans.

[4] Including off-balance sheet loans.

[5] As at end-March 2025.

[6] The use and interpretation of new data may involve uncertainty. The uncertainties are reduced as more data is collected and more experience is gained about its detailed analysis. The Positive Credit Register data does not enable one to distinguish “consumer credits”. Credits to consumers on collection companies’ balance sheet include vehicle loans, revolving credits and other credits to consumers.