Online loans promote MFO market recovery
The first half of 2021 recorded growth in the MFO market as microfinance organisations (MFOs) issued more online loans and increased the average amount of medium-term loans. As a result, the portfolio of microloans expanded by 7% in 2021 Q2, reaching 287 billion rubles.
The MFO sector continues to enhance its technology level: the percentage of online loans rose to 81% and 37% in short- and long-term disbursements, respectively.
Returns on capital in the industry as a whole bounced back to pre-pandemic levels. Financial indicators improved largely as a result of higher returns among large organisations and market participants having large portions of loans issued online.
More details are available in the Review of Key Indicators of Microfinance Organisations for 2021 Q2.