Serbian banks approve nearly 80% of loan relief requests

The National Bank of Serbia has reported that banks accepted 79 percent of borrower requests for loan repayment relief in the first quarter of 2026, drawn from a sample of 2,321 processed installments carrying total debt of about 2.3 billion dinars (~19.6 million EUR). After the approved measures were applied, the debt on those installments fell to roughly 1.9 billion dinars (~16.2 million EUR), showing that relief in practice does not mean write-off but a rescheduling of the burden over time.

The fact that banks turned down only one in five requests looks favorable for borrowers, yet the bare percentage hides the social picture behind it. Behind every approved installment stands a household that, for one reason or another, stopped servicing its obligation on schedule. It is also notable that banks themselves initiated relief on an additional 913 installments worth about 968 million dinars (~8.3 million EUR), a sign that part of the portfolio carries default risk from the creditor side as well.

Who asks for relief, and why?

The breakdown of reasons says more than the headline rate. Job loss was cited in 53.7 percent of requests, a significant drop in income in 19.2 percent, and serious illness in 8.7 percent of cases. In other words, more than seven in ten requests stem from a sudden loss or fall in income rather than from reckless borrowing. That distinction matters: a borrower who loses a salary is not negotiating over luxury but over how to keep a roof and avoid forced collection.

The loan profile confirms this. Cash loans account for 76 percent of all requests, while housing loans make up just 3 percent. Cash loans are typically more expensive, shorter in term and unsecured by property, so they are the first to buckle when a household budget breaks. Housing borrowers, with longer terms and lower rates, have more room to maneuver before reaching for relief, which explains their low share in the statistics.

What borrowers can actually request

The obligation for banks to offer relief was introduced by regulations dating from March 2025, which is why the first quarter of 2026 offers the first serious view of how the mechanism works in practice. The most common measure is an extension of the repayment term, often combined with a lower interest rate or the deferral of individual installments. Extending the term reduces the monthly payment but raises the total interest a borrower pays by the end, so it is not a free fix but the purchase of time.

A borrower who judges that the next installment is beyond reach has the right to approach the bank before falling into arrears, since the negotiating position is stronger while the loan is current than once reminders and charges begin. The request states the reason and attaches proof of the change in income or health, and the bank is obliged to consider the proposal and respond. Approval is not guaranteed, as the 21 percent of rejected requests makes clear, but the data show the odds of a positive outcome are high when the reason is documented and convincing.

For the household budget, the key is to understand that relief is not debt forgiveness: the installment shrinks or shifts, but the obligation remains and usually grows more expensive over the long run. Still, for a household that has lost income, the room to avoid forced collection and preserve a credit history is worth more than interest spread across extra months. Before you miss a first installment, would you ask your bank to extend the repayment term?