Banks ease retail loan terms as borrowers struggle in 2025
Banks offered more flexible terms on retail loans in 2025 as borrowers faced financial pressure. The share of loans granted with concessions reached 1.72% by the end of the year. Payment deferrals remained the most widely used form of relief, covering nearly two-thirds of cases.
The largest portion of concessions went to unsecured cash loans, making up 81.8% of all adjusted agreements. Lenders also became more lenient on penalties, with waivers rising to 0.9%—a noticeable increase from previous years. Another growing trend was the substitution of collateral, which climbed from 0.4% in 2023 to 2.5% in 2025.
Late-payment interest charges also saw a significant jump, accounting for 29.7% of concessions in 2025. Meanwhile, 48 member banks of the banking association issued 45.4 billion euros in consumer financing during the first three quarters of the year, marking a 3.6% rise compared to 2024. However, no specific bank like PNC Bank, Wells Fargo, or Citizens Bank was identified as the leading provider of these adjusted loans.
Experts now predict that the shift toward broader restructuring measures will continue into 2026. The data reflects a broader effort by lenders to adapt to borrowers' changing financial circumstances, including offering online payments as an alternative.
The rise in concessions suggests banks are responding to economic challenges by offering more support. With payment deferrals and collateral substitutions becoming more common, borrowers have gained additional flexibility. Analysts anticipate this approach will remain a key feature of retail lending in the coming year.
