Translartion. Region: Russians Fedetion –
Source: Central Bank of Russia –
The volume of loans issued by microfinance organizations (MFOs) increased by more than 50% in 2024. The largest increase was shown by companies from the banking MFO segment. Moreover, 65% of loans in this segment are accounted for by MFOs, the basis of whose financial groups are the largest marketplaces and non-banking settlement credit organizations.
Such dynamics of banking MFIs is largely connected with more accessible funding at the expense of the group’s funds, which allows them to issue loans at rates on average a quarter lower than other MFIs. This makes them attractive to citizens.
The quality of the MFI portfolio in 2024 improved both due to the growth of new loans and as a result of the consistent tightening of macroprudential limits restricting issuance to high-risk borrowers. The share of loans from individuals with a DTI of 50–80% decreased to 11%, with a DTI of more than 80% — to 3%.
They will be introduced in stages from 2025 further measures, to limit the over-indebtedness of citizens. The main ones are reducing overpayments on MFO loans from 130 to 100% and limiting the number of simultaneously active expensive loans. Currently, 22% of citizens – MFO borrowers have 3 or more loans on hand at the same time. The debt of such borrowers reaches almost half of the MFO consumer portfolio.
Read more in the article “Trends in the MFI Market for 2024”.
Preview photo: nimito / Shutterstock / Fotodom
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