Every fifth Uzbek is in debt: The Central Bank revealed sensational loan figures

The Central Bank has published the results of the National Financial Inclusion Index in Uzbekistan for the first time. The report disclosed important statistical indicators regarding the lending activity of the adult population in the country, the level of indebtedness, and the demand for microfinance organizations.

According to the data, today every fifth adult citizen in our country uses bank loans, and a significant portion of borrowers is paying off multiple loan obligations at the same time.

1.7 loans per person: Population debt statistics

Central Bank analyses showed the following key indicators regarding citizens' participation in the credit market:

• Every fifth person has borrowed: 20 percent of the adult population has active current loan accounts in commercial banks;

• Microfinance services: Another 7 percent of the population uses the services of microfinance organizations and pawnshops;

• Multiple loans at the same time: 29 percent of customers who borrowed from a bank have more than one loan obligation simultaneously. On average, there are 1.7 loans per borrower.

80% of loans are issued online: Speed and control

Due to the sharp increase in digitalization processes in the country's financial market, the procedure for obtaining retail loans has become significantly easier:

• Processing without the human factor: Nearly 80 percent of new retail loans are allocated online through scoring and automated systems without the intervention of bank employees;

• 98 percent database: Financial data regarding 98 percent of adult citizens has been entered into the unified Credit Bureau database. This allows commercial banks to determine the customer's debt burden in advance and assess their solvency.

Risk of over-indebtedness: What did the Central Bank warn about?

As lending opportunities expand, the regulator is warning of the risk of excessive financial burden and falling into a debt trap:

• Assessment of solvency: The Central Bank emphasized the need to fully take into account all obligations of each citizen and adapt loan terms to their real income;

• Proactive risk mitigation: The main goal is to prevent chronic indebtedness among the population and maintain the stability of the banking system.