Translation. Region: Russian Federal
Source: Central Bank of Russia –
Microfinance organizations (MFOs) issued microloans worth 497 billion rubles in the first quarter of 2025, which is 1% less than the quarter before. There are several reasons for the slowdown in the retail segment. Loan terms have become longer, and some categories have become more expensive due to moratorium on limiting the PSC, and also had an impact Q4 2024 high base effect. In the business segment, there was a seasonal decline in demand.
The consumer lending market continues to transform under the influence of macroprudential limits and in anticipation of introduction of restrictions on the number of simultaneously active loans.
Companies are trying to attract new, higher-quality borrowers and offer financial solutions to retain regular customers over the long term.
Almost half of the loans in the first quarter were issued for a term of over a year. More than a quarter of consumer loans are agreements with a credit limit, which are essentially similar to bank credit cards. The average amount of a consumer loan also increased: over the year, it reached 21 thousand rubles.
Customers remained interested in online loans on marketplaces and POS lending at retail outlets, which is explained by a more affordable interest rate and a grace period during which interest may not be charged. More than 60% of loans from new borrowers are for these financial products.
The share of car loans has grown 6 times, to 9%, and they are often issued to the most indebted borrowers. In order to prevent the accumulation of risks, from the third quarter the Bank of Russia is introducing in this segment macroprudential limits.
The share of overdue debt over 90 days in the total MFI portfolio continued to decline and amounted to 27.5%. The main risks are still concentrated in retail, while there was a gradual improvement in the quality of the consumer portfolio due to the influx of new borrowers, as well as the sale of overdue debt by individual MFIs at earlier dates.
Read more in“Trends in the MFI market for the first quarter of 2025”.
Preview photo: R.classen / Shutterstock / Fotodom
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