Overdue debt on new loans stops growing
The portfolio of microloans expanded by 6% in 2021 Q3, totalling 305 billion rubles. Overdue debt did not increase over the said period. This suggests that companies stopped easing their requirements for borrowers. These are the findings presented in the Review of Key Indicators of Microfinance Organisations for 2021 Q3.
The portion of long-term loans issued for more than 30 days or in an amount of over 30,000 rubles reached a record high of 55%. The legislative authorities plan to reduce the maximum cost of credit from 1% to 0.8% per day and the maximum amount of payments, which will encourage microfinance organisations (MFOs) to shift from short-term lending involving the highest risks towards long-term lending.
The percentage of online loans continues to rise. Many companies issuing loans remotely operate in the payday loan segment. However, during the first nine months of 2021, there was a considerable increase in the number of organisations offering online loans with longer maturities. Overall, the MFOs issuing loans predominantly online earn higher profits on average.