Graph and download economic data for Delinquency Rate on Business Loans, All Commercial Banks (DRBLACBS) from Q1 1987 to Q1 2025 about delinquencies, commercial, business, loans, banks, depository institutions, industry, rate, and USA.

The delinquency rates on commercial and industrial loans at commercial banks in the United States has remained relatively stable in the years leading to 2024. As of the second quarter 2021, the delinquency rate on business loans at commercial banks in the United States stood at **** percent, a figure that decreased to **** percent by the third quarter of 2023, only to rise to *** percent in the last quarter of 2024.

United States - Delinquency Rate on Business Loans, All Commercial Banks was 1.30% in October of 2024, according to the United States Federal Reserve. Historically, United States - Delinquency Rate on Business Loans, All Commercial Banks reached a record high of 6.99 in January of 1987 and a record low of 0.71 in October of 2014. Trading Economics provides the current actual value, an historical data chart and related indicators for United States - Delinquency Rate on Business Loans, All Commercial Banks - last updated from the United States Federal Reserve on July of 2025.

Graph and download economic data for Delinquency Rate on Commercial Real Estate Loans (Excluding Farmland), Booked in Domestic Offices, All Commercial Banks (DRCRELEXFACBN) from Q1 1991 to Q1 2025 about farmland, domestic offices, delinquencies, real estate, commercial, domestic, loans, banks, depository institutions, rate, and USA.

In the first quarter of 2025, roughly **** percent of all consumer loans at commercial banks in the United States were delinquent. The delinquency rate on this type of credit has been rising again since 2021. Loans are delinquent when the borrower does not pay their obligations on time. One of the reasons for the delinquency rate decreasing during the first years of the COVID-19 pandemic was that the personal saving rate in the U.S. soared during that period. What is the trend in consumer credit levels in the United States? Consumer credit refers to the various types of loans and credit extended to individuals for personal use, often to fund everyday purchases or larger expenses. When credit levels rise, it often signals that consumers are more confident in their ability to manage debt and make future payments. After a period of strong growth between 2021 and early 2023, consumer credit in the United States has been growing at a slower pace. By early 2024, consumer credit levels reached over **** trillion U.S. dollars. What is the main channel for acquiring consumer credit? In 2024, the leading type of consumer credit among consumers in the U.S. was credit card bills. Credit card usage in the North American country was substantial and credit card penetration was expected to reach over **** percent by 2029. Car loans ranked next as a common source of consumer credit, while other types of debt, such as medical bills, home equity lines of credit, and personal educational loans, had lower percentages.

United Kingdom Credit Cond: CL: L3: Default Rate: Small Business data was reported at 10.900 % Point in Jun 2018. This records an increase from the previous number of -19.700 % Point for Mar 2018. United Kingdom Credit Cond: CL: L3: Default Rate: Small Business data is updated quarterly, averaging -6.800 % Point from Dec 2009 (Median) to Jun 2018, with 35 observations. The data reached an all-time high of 38.000 % Point in Dec 2009 and a record low of -34.800 % Point in Jun 2015. United Kingdom Credit Cond: CL: L3: Default Rate: Small Business data remains active status in CEIC and is reported by Bank of England. The data is categorized under Global Database’s UK – Table UK.KB020: Credit Conditions Survey: Corporate Lending: Last 3 Months.

Graph and download economic data for Delinquency Rate on Consumer Loans, All Commercial Banks (DRCLACBS) from Q1 1987 to Q1 2025 about delinquencies, commercial, loans, consumer, banks, depository institutions, rate, and USA.

The Global Financial Crisis of 2008-09 was a period of severe macroeconomic instability for the United States and the global economy more generally. The crisis was precipitated by the collapse of a number of financial institutions who were deeply involved in the U.S. mortgage market and associated credit markets. Beginning in the Summer of 2007, a number of banks began to report issues with increasing mortgage delinquencies and the problem of not being able to accurately price derivatives contracts which were based on bundles of these U.S. residential mortgages. By the end of 2008, U.S. financial institutions had begun to fail due to their exposure to the housing market, leading to one of the deepest recessions in the history of the United States and to extensive government bailouts of the financial sector.

Subprime and the collapse of the U.S. mortgage market

The early 2000s had seen explosive growth in the U.S. mortgage market, as credit became cheaper due to the Federal Reserve's decision to lower interest rates in the aftermath of the 2001 'Dot Com' Crash, as well as because of the increasing globalization of financial flows which directed funds into U.S. financial markets. Lower mortgage rates gave incentive to financial institutions to begin lending to riskier borrowers, using so-called 'subprime' loans. These were loans to borrowers with poor credit scores, who would not have met the requirements for a conventional mortgage loan. In order to hedge against the risk of these riskier loans, financial institutions began to use complex financial instruments known as derivatives, which bundled mortgage loans together and allowed the risk of default to be sold on to willing investors. This practice was supposed to remove the risk from these loans, by effectively allowing credit institutions to buy insurance against delinquencies. Due to the fraudulent practices of credit ratings agencies, however, the price of these contacts did not reflect the real risk of the loans involved. As the reality of the inability of the borrowers to repay began to kick in during 2007, the financial markets which traded these derivatives came under increasing stress and eventually led to a 'sudden stop' in trading and credit intermediation during 2008.

Market Panic and The Great Recession

As borrowers failed to make repayments, this had a knock-on effect among financial institutions who were highly leveraged with financial instruments based on the mortgage market. Lehman Brothers, one of the world's largest investment banks, failed on September 15th 2008, causing widespread panic in financial markets. Due to the fear of an unprecedented collapse in the financial sector which would have untold consequences for the wider economy, the U.S. government and central bank, The Fed, intervened the following day to bailout the United States' largest insurance company, AIG, and to backstop financial markets. The crisis prompted a deep recession, known colloquially as The Great Recession, drawing parallels between this period and The Great Depression. The collapse of credit intermediation in the economy lead to further issues in the real economy, as business were increasingly unable to pay back loans and were forced to lay off staff, driving unemployment to a high of almost 10 percent in 2010. While there has been criticism of the U.S. government's actions to bailout the financial institutions involved, the actions of the government and the Fed are seen by many as having prevented the crisis from spiraling into a depression of the magnitude of The Great Depression.

Graph and download economic data for Delinquency Rate on Business Loans, Banks Not Among the 100 Largest in Size by Assets (DRBLOBS) from Q1 1987 to Q1 2025 about delinquencies, business, assets, loans, banks, depository institutions, industry, rate, and USA.

In the first quarter of 2025, roughly **** percent of all borrowing issued by commercial banks in the United States was delinquent. Loans are considered delinquent if they are not paid on their due date. These figures rose at an unprecedented pace during the economic crisis of 2007, with a peak of *** percent in the first quarter of 2010.

United States - Delinquency Rate on Business Loans, Banks Ranked 1st to 100th Largest in Size by Assets was 1.18% in January of 2025, according to the United States Federal Reserve. Historically, United States - Delinquency Rate on Business Loans, Banks Ranked 1st to 100th Largest in Size by Assets reached a record high of 6.98 in April of 1987 and a record low of 0.58 in October of 2014. Trading Economics provides the current actual value, an historical data chart and related indicators for United States - Delinquency Rate on Business Loans, Banks Ranked 1st to 100th Largest in Size by Assets - last updated from the United States Federal Reserve on July of 2025.

United States - Delinquency Rate on Business Loans, Banks Not Among the 100 Largest in Size by Assets was 1.85% in January of 2025, according to the United States Federal Reserve. Historically, United States - Delinquency Rate on Business Loans, Banks Not Among the 100 Largest in Size by Assets reached a record high of 6.64 in October of 1990 and a record low of 0.92 in January of 2021. Trading Economics provides the current actual value, an historical data chart and related indicators for United States - Delinquency Rate on Business Loans, Banks Not Among the 100 Largest in Size by Assets - last updated from the United States Federal Reserve on July of 2025.

Graph and download economic data for Delinquency Rate on Credit Card Loans, All Commercial Banks (DRCCLACBS) from Q1 1991 to Q1 2025 about credit cards, delinquencies, commercial, loans, banks, depository institutions, rate, and USA.

Delinquency rates for credit cards picked up in 2025 in the United States, leading to the highest rates observed since 2008. This is according to a collection of one of the United States' federal banks across all commercial banks. The high delinquency rates were joined by the highest U.S. credit card charge-off rates since the Financial Crisis of 2008. Delinquency rates, or the share of credit card loans overdue a payment for more than ** days, can sometimes lead into charge-off, or a writing off the loan, after about six to 12 months. These figures on the share of credit card balances that are overdue developed significantly between 2021 and 2025: Delinquencies were at their lowest point in 2021 but increased to one of their highest points by 2025. This is reflected in the growing credit card debt in the United States, which reached an all-time high in 2023.

According to Cognitive Market Research, the global business loan market size is USD XX million in 2024 and will expand at a compound annual growth rate (CAGR) of 12.00% from 2024 to 2031.

North America held the major market, accounting for more than 40% of global revenue. With a market size of USD XX million in 2024, it will grow at a compound annual growth rate (CAGR) of 10.2% from 2024 to 2031.
Europe accounted for a share of over 30% of the global market size of USD XX million.
Asia Pacific held a market of around 23% of the global revenue with a market size of USD XX million in 2024 and will rise at a compound annual growth rate (CAGR) of 14.0% from 2024 to 2031.
The Latin America market will account for more than 5% of global revenue and will be USD XX million in 2024, growing at a compound annual growth rate (CAGR) of 11.4% from 2024 to 2031.
The Middle East and Africa held the major markets, accounting for around 2% of the global revenue. The market was USD XX million in 2024 and will grow at a compound annual growth rate (CAGR) of 11.7% from 2024 to 2031.
The long-term loans held the highest business loan market revenue share in 2024.

Market Dynamics of Business Loan Market

Key Drivers for Business Loan Market

Economic Growth Drives Demand for Business Loans

Economic growth plays a pivotal role in driving demand for business loans within the market. When the economy is expanding, businesses often seek to invest in new opportunities, scale operations, and increase production to meet growing demand. This expansion necessitates access to additional capital, leading companies to turn to business loans as a source of funding. In a thriving economic environment, lenders are typically more willing to extend credit due to lower risk, which encourages businesses to take out loans for various purposes such as working capital, equipment upgrades, or expansion projects. Consequently, a robust economic climate fosters a positive cycle where increased borrowing fuels further business growth, driving the overall business loan market forward.

Fintech Innovations Facilitate Easier Loan Access and Approval Propels Market Growth

Fintech innovations play a crucial role in propelling growth in the business loan market by facilitating easier loan access and streamlined approval processes. The integration of advanced technologies such as artificial intelligence, machine learning, and big data analytics has revolutionized traditional lending methods, enabling lenders to make quicker, more data-driven decisions. Online platforms and mobile applications provide businesses with convenient ways to apply for loans, eliminating the need for in-person meetings or extensive paperwork. These innovations expedite the application and approval process and allow for more inclusive lending, reaching various businesses, including startups and small enterprises. As a result, fintech-driven efficiencies enhance the overall customer experience and contribute significantly to the expansion and evolution of the business loan market.

Restraint Factor for the Business Loan Market

High Default Rates Can Prevent Lenders from Issuing Loans

High default rates pose a significant restraint on the business loan market by discouraging lenders from issuing loans. When lenders experience a surge in defaults, they incur financial losses. They must allocate more resources toward risk management and debt recovery, leading to a decrease in available capital for new loans. Additionally, heightened default rates signal underlying economic challenges or weaknesses within specific industries, causing lenders to adopt more conservative lending practices to mitigate potential losses. As a result, businesses may encounter increased difficulty in obtaining financing, particularly those with less-than-stellar credit histories or operating in sectors prone to default risk. The reluctance of lenders to extend credit in such circumstances can create a tightening credit environment, constraining business growth opportunities and hindering economic expansion overall.

Impact of Covid-19 on the Business Loan Market

The COVID-19 pandemic had an intense impact on the business loan market, disrupting traditional lending dynamics and posing challenges for both lenders and borrowers. The economic uncertainty and widespread business closures led to a sharp increase in credit risk, prompting lenders to tighten their lending standards and scr...

According to Cognitive Market Research, the global small business loan market size is USD XX million in 2024. It will expand at a compound annual growth rate (CAGR) of 6.00% from 2024 to 2031. North America held the major market share for more than 40% of the global revenue with a market size of USD XX million in 2024 and will grow at a compound annual growth rate (CAGR) of 4.2% from 2024 to 2031. Europe accounted for a market share of over 30% of the global revenue with a market size of USD XX million. Asia Pacific held a market share of around 23% of the global revenue with a market size of USD XX million in 2024 and will grow at a compound annual growth rate (CAGR) of 8.0% from 2024 to 2031. Latin America had a market share for more than 5% of the global revenue with a market size of USD XX million in 2024 and will grow at a compound annual growth rate (CAGR) of 5.4% from 2024 to 2031. Middle East and Africa had a market share of around 2% of the global revenue and was estimated at a market size of USD XX million in 2024 and will grow at a compound annual growth rate (CAGR) of 5.7% from 2024 to 2031. The medium term loan held the highest Small business loan market revenue share in 2024. Market Dynamics of Small business loan Market Key Drivers for Small business loan Market Government Support Programs to Increase the Demand Globally Government support programs play a pivotal role in boosting global demand for small business loans. By providing guarantees, subsidies, and low-interest loan options, governments reduce the financial risk for lenders, encouraging them to extend more credit to small businesses. Initiatives like the Small Business Administration (SBA) loans in the U.S. or similar programs in other countries, offer critical financial backing that enables small businesses to secure the necessary capital for growth and operations. Additionally, grants and tax incentives further alleviate the financial burdens on small enterprises, making borrowing more attractive. These supportive measures not only stimulate entrepreneurial activity and economic growth but also foster innovation and job creation, thereby enhancing the overall economic landscape and driving increased demand for small business loans globally. Online lending platforms to propel the market growth Online lending platforms are revolutionizing the small business loan market by significantly propelling its growth. These platforms leverage advanced technology to streamline the loan application process, making it faster and more efficient compared to traditional methods. Small businesses benefit from quicker approval times and access to a broader range of loan products tailored to their specific needs. The user-friendly interfaces and data-driven decision-making tools used by online lenders improve accessibility for businesses that might struggle with traditional lending criteria. Additionally, the competitive interest rates and flexible repayment options offered by these platforms attract a diverse pool of borrowers. By breaking down geographic and bureaucratic barriers, online lending platforms are expanding the reach of financial services, fostering innovation, and driving substantial growth in the small business loan market. Restraint Factor for the Small business loan Market High-interest rates to Limit the Sales High-interest rates significantly limit sales in the small business loan market. When interest rates are elevated, the cost of borrowing increases, making loans less affordable for small businesses. This higher financial burden can deter many businesses from taking out loans, especially those with tight profit margins or limited cash flow. Consequently, potential borrowers may postpone or abandon plans for expansion, equipment purchases, or other investments that require financing. Furthermore, high-interest rates increase the risk of default, which can lead to stricter lending criteria and reduced loan availability from cautious lenders. This environment creates a challenging cycle where high costs inhibit demand and access to credit, ultimately restricting the overall growth and dynamism of the small business sector. Impact of Covid-19 on the Small business loan Market The COVID-19 pandemic had a profound negative impact on the small business loan market. As economic uncertainty surged, many small businesses faced significant revenue losses, reducing their ability to repay loans. Consequently, lenders became more risk-averse, tighte...

Company Information:

The data set is based upon https://www.kaggle.com/prateikmahendra/loan-data"> Lending Club Information . - TheIrish Dummy Banks is a peer to peer lending bank based in the ireland, in which bank provide funds for potential borrowers and bank earn a profit depending on the risk they take (the borrowers credit score). Irish Fake bank provides loan to their loyal customers. The complete data set is borrowed from Lending Club For more basic information about the company please check out the wikipedia article about the company. This dataset is copied and clean from kaggle but it has been changed. The any kind of similarity is just for learning purposes. I dont have any intention for Plagiarism I just like to be clear myself.

<a src="https://en.wikipedia.org/wiki/Lending_Club"> Lending Club Information </a>

The central idea and coding is abstract from Kevin mark ham youtube video series, Introduction to machine learning with scikit-learn video series. You can find link under resources section.

Data Description

• LoanStatNew Description

• addr_state The state provided by the borrower in the loan application

• annual_inc The self-reported annual income provided by the borrower during registration.

• annual_inc_joint The combined self-reported annual income provided by the co-borrowers during registration

• application_type Indicates whether the loan is an individual application or a joint application with two co-borrowers

• collection_recovery_fee post charge off collection fee

• collections_12_mths_ex_med Number of collections in 12 months excluding medical collections

• delinq_2yrs The number of 30+ days past-due incidences of delinquency in the borrower's credit file for the past 2 years

• desc Loan description provided by the borrower

• dti A ratio calculated using the borrower’s total monthly debt payments on the total debt obligations, - - - excluding mortgage and the requested LC loan, divided by the borrower’s self-reported monthly income.

• dti_joint A ratio calculated using the co-borrowers' total monthly payments on the total debt obligations, - excluding mortgages and the requested LC loan, divided by the co-borrowers' combined self-reported monthly income

• earliest_cr_line The month the borrower's earliest reported credit line was opened

• emp_length Employment length in years. Possible values are between 0 and 10 where 0 means less than one year

• and 10 means ten or more years.

• emp_title The job title supplied by the Borrower when applying for the loan.*

• fico_range_high The upper boundary range the borrower’s FICO at loan origination belongs to.

• fico_range_low The lower boundary range the borrower’s FICO at loan origination belongs to.

• funded_amnt The total amount committed to that loan at that point in time.

• funded_amnt_inv The total amount committed by investors for that loan at that point in time.

• grade LC assigned loan grade

• home_ownership The home ownership status provided by the borrower during registration. Our values are: RENT, OWN, MORTGAGE, OTHER.

United Kingdom Credit Cond: CL: N3: Default Rate: Small Business data was reported at 0.000 % Point in Sep 2018. This records a decrease from the previous number of 10.900 % Point for Jun 2018. United Kingdom Credit Cond: CL: N3: Default Rate: Small Business data is updated quarterly, averaging 0.000 % Point from Dec 2009 (Median) to Sep 2018, with 36 observations. The data reached an all-time high of 38.700 % Point in Dec 2009 and a record low of -15.100 % Point in Jun 2015. United Kingdom Credit Cond: CL: N3: Default Rate: Small Business data remains active status in CEIC and is reported by Bank of England. The data is categorized under Global Database’s United Kingdom – Table UK.KB021: Credit Conditions Survey: Corporate Lending: Next 3 Months.

The percentage of Affirm's loans that are at least 30 days past due their original payment date increased in the first quarter of 2025. This was a decrease of *** percentage point for the U.S. BNPL company when compared to the same quarter in 2024, but still lower than previous peaks, such as in 2020. Nevertheless, these figures are lower than the aggregated credit card delinquency rate for the United States. Why this is the case, is not exactly clear. Industry analysts believe the lower amounts and shorter timeframe of BNPL payments may lower delinquency. Others argue that paying off such payments, first, may impact the ability to pay back larger transactions performed with a credit card.

Graph and download economic data for Delinquency Rate on Single-Family Residential Mortgages, Booked in Domestic Offices, All Commercial Banks (DRSFRMACBS) from Q1 1991 to Q1 2025 about domestic offices, delinquencies, 1-unit structures, mortgage, family, residential, commercial, domestic, banks, depository institutions, rate, and USA.