Reduction of overdue debts in consumer bank lending

Abstract

In the current macroeconomic environment, the role of consumer credit in Russia is significantly increasing. However, in
addition to this, consumer lending is a huge credit risk for a commercial Bank and causes for financial insolvency of citizens.
It is necessary to find tools that will be able to encourage the borrower to work for a loan repayment. All this determines the
relevance of the research topic. The purpose of the research is to develop and economically justify ways (tools) to reduce
overdue debt in consumer lending in a commercial Bank. The main results of the study indicate that the proposed measures
will have an economic effect in the form of additional net income, a decrease in the share of overdue loans, and an increase in
consumer lending. The results can be used in the practice of consumer lending by Russian commercial banks.