Microfinance organizations (MFOs) saw a significant increase in corporate lending in 2024, as reported by the Bank of Russia. The lending expanded by almost a quarter, with 75,000 small and medium-sized enterprises (SMEs) and individual entrepreneurs as clients by the end of the year.
For the first time, commercial MFOs have outpaced their government-owned counterparts in the issuance of microloans. They dispersed over ₽73 billion to entrepreneurs, marking a 54% increase from 2023. The growth was largely attributed to the digitalization of their services, with more than 90% of microloans being granted remotely. Most of the clients for these commercial MFOs were small businesses and entrepreneurs involved in trade, especially marketplace suppliers.
On the other hand, government-owned MFOs focused their financial support on construction, transport, manufacturing, and agricultural enterprises, often working with regional businesses and import substitution projects. Government subsidies allowed these organizations to offer an average interest rate of 7% per annum on microloans. In contrast, commercial MFOs had an average interest rate of 46% per annum.
Additionally, the State Duma is reviewing a draft law that suggests increasing the maximum amount for a corporate microloan from the current ₽5 million to ₽15 million. The proposed change aims to enhance SMEs' borrowing capacity and enable entrepreneurs to finance more extensive and capital-intensive projects.