MFOs adjust to regulatory changes: 2024 Q1 results
The loan portfolio of microfinance organisations expanded by 7% over 2024 Q1 amid high consumer demand. Predominantly medium-term loans were issued. Payday loans, which are traditionally the most expensive ones, accounted for 32% of the total amount of loans granted for several quarters. This is the lowest amount since 2017.
Companies were gradually adjusting to the regulatory restrictions. The share of microloans issued to customers with the debt service-to-income ratio of
The regional analysis of the microfinance market shows that the largest amount of loans is provided in the regions with low accessibility of banking services and densely populated regions.
More details are available in the Review of Key Indicators of Microfinance Organisations for 2024 Q1.