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Household Loan Defaults Rise to 12% in April, Hitting 5.3 Million Borrowers

The jump in missed payments comes as lenders keep very high interest rates and real lending falls, tightening access to credit and cutting household demand.

Overview

  • April data from consultora 1816, using BCRA records, show household loan irregularity climbed to 12%, which the report estimates affects about 5.3 million people.
  • Corporate stress is rising too, with delinquent debt at 3.3% by outstanding amount and 13.5% of firms in arrears, and several provinces reporting business default rates above 10%.
  • Nonbank lenders are under the most strain, with a 31.5% irregularity rate in April, and 26 of the 30 largest household-lending institutions saw mora increase month to month.
  • Lenders keep active annual rates high — around a 66.9% TNA for personal bank loans in early May — while real private lending continued to contract, limiting new credit supply.
  • Because credit penetration is low at roughly 12% of GDP, the surge in defaults mainly blocks borrowers from future finance, cuts consumption and raises funding costs for firms ahead of next year’s elections.