One of FI’s assignments is to promote a high level of protection for consumers on the financial markets. As a result, we analyse consumer credit, and this report is part of this analysis.
Summary
Swedish households primarily borrow money to purchase a home. Only 6 per cent of household loans consist of consumer credit. However, consumer credit represents approximately one-fourth of household loan payments (interest and amortisation). In terms of SEK, unsecured loans represent a large share of consumer credit, but in terms of volume, invoices are most common.
New unsecured loans decreased from SEK 8 billion per month in 2022 to SEK 5 billion in 2024. Lending from major banks and niche banks decreased, primarily due to lower demand following higher interest rates. Consumer credit institutions deviate from other lenders in that they increased their lending more in 2024.
Unsecured loans can lead to significant costs in the form of interest and fees. Small unsecured loans often have a high interest rate, but large unsecured loans have a larger total cost since they often have long maturities. Many borrowers with low income or large loans divert a large portion of their monthly income to loan payments.
The number of borrowers with unsecured loans who experience payment problems as a result of their loans has increased. For example, approximately one-third of the customers of the consumer credit institutions received a debt collection notice in 2024. This percentage has been relatively constant since 2020. The number of customers of major banks and niche banks that received debt collection notices and payment orders has increased since 2020, but from low levels.
Invoices are one way to pay for goods and services. They are also a form of consumer credit. And just like other forms of consumer credit, invoices can lead to debt collection notices and debt registered with the Swedish Enforcement Authority. The use of invoices has increased in both number and value. In 2024, the value of new invoices amounted to approximately SEK 110 billion, an increase of around 60 per cent since 2020. During the same period, household consumption in Sweden increased by 30 per cent. The percentage of invoices that led to debt collection notices decreased from 0.9 per cent in 2020 to 0.7 per cent in 2024. However, the percentage of invoices with payment reminders that also led to debt collection notices increased from 13 per cent in 2020 to 16 per cent in 2024.
During 2025, new consumer credit regulations entered into force. Swedish Parliament decided, among other things, to remove the interest rate deduction for unsecured loans, lower the interest rate ceiling, and eliminate the type of authorisation consumer credit institutions have had. FI expects these measures to dampen consumer credit lending going forward.
