The loan portfolio of microfinance organizations expanded by 7% over the first quarter of 2024 amid high consumer demand. Predominantly medium-term loans were issued. Payday loans, which are traditionally the most expensive ones, accounted for 32% of the total amount of loans granted for several quarters. This is the lowest amount since 2017.
Companies were gradually adjusting to regulatory restrictions. The share of microloans issued to customers with a debt service-to-income ratio of 50–80% and over 80% remained within the set limits (25% and 15%, respectively). The Bank of Russia has lowered the limits for the third quarter of 2024 to 20% and 10%.
The regional analysis of the microfinance market shows that the largest amount of loans is provided in regions with low accessibility to banking services and densely populated regions.
More details are available in the Review of Key Indicators of Microfinance Organizations for Q1 2024.
Preview photo: BABAROGA / Shutterstock / Fotodom