Microloan market recovers: 2022 Q3 results
The loan portfolio of microfinance organisations increased by 5% to 364 billion rubles after an almost zero growth in Q2. Concurrently, the number of medium-term online loans increased, while the share of short-term loans (the so-called ‘payday loans’) dropped to the level of late December 2021. These data are given in the Review of Key Indicators of Microfinance Organisations for 2022 Q3.
Over July—September, the average amount of a short-term loan increased from 8,700 to 8,900 rubles, and a medium-term loan — from 14,800 to 18,400 rubles. In addition, companies toughened their requirements for potential borrowers. Subsequently, the level of overdue debt on new loans began to decline, and the level of loans overdue by more than 90 days stopped growing.
The introduction of macroprudential limits on unsecured consumer loans in the beginning of 2023 and a reduction in the maximum cost of a loan and the maximum outstanding amount in mid-2023 will facilitate a balanced approach to the selection of borrowers.