Medium-term microloans increase in Q3
Driven by higher consumer demand, the microloan portfolio of microfinance organisations expanded to ₽423 billion in 2023 Q3. The share of medium-term microloans increased, whereas that of short-term ones contracted.
The sector is becoming more technologically advanced. The proportion of online microloans in the total amount rose from 73% to 76%.
Pursuant to the regulatory changes introduced in July to reduce borrowers’ debt burden, overpayment for a loan (microloan) may not exceed one-third of the borrowed amount and the total cost of credit — 292% per annum. In accordance with the macroprudential limits established, the proportion of microloans issued to borrowers with debt service-to-income ratios above 80% may not exceed 30%. This limit was lowered to 15% for 2023 Q4 and 2024 Q1. The structure of lending can thus be expected to change further, with the percentage of borrowers with lower debt burden growing.
More details are available in the Review of Key Indicators of Microfinance Organisations for 2023 Q3.