As of the end of Q1 2024, the proportion of non-performing microloans overdue for 90 or more days dropped to 14.3%, marking a two-year low.
Consumer credit cooperatives (CCCs) have managed to maintain the quality of their portfolios by applying a responsible approach to assessing potential borrowers' risks. Cooperatives employ several methods to estimate a customer's creditworthiness, including checking databases from the Federal Tax Service and Federal Bailiffs Service of Russia, requesting credit histories, demanding information on employers or personal income certificates, and analyzing personal data.
According to the survey, more than a third of cooperatives issue business microloans. The interest rate on these loans is comparable with that on bank loans for small and medium-sized enterprises.
A significant trend in business development plans is digitalization. Nearly 40% of surveyed CCCs plan to expand their online segment. In the future, the industry will be considerably affected by a recently adopted law establishing tougher rules for cooperatives entering the market.
More details are available in the Bank of Russia’s analytical material "Trends in the Market of Consumer Credit Cooperatives."
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