MFOs lend almost ₽130 billion to businesses over 2024
According to Bank of Russia calculations, microfinance organisations (MFOs) increased corporate lending by nearly a quarter in 2024. As of the end of the year, 75,000 small and medium-sized enterprises (SMEs) and individual entrepreneurs were MFOs’ clients.
For the first time, commercial MFOs surpassed government-owned MFOs in terms of microloans issued. Specifically, they disbursed over ₽73 billion to entrepreneurs, which is 54% more than in 2023. The growth was driven by the digitalisation of their services: commercial MFOs granted more than 90% of microloans remotely. MFOs’ main clients were small companies and entrepreneurs engaged in trade, including marketplace suppliers.
As for government-owned MFOs, they were financing construction, transport, manufacturing, and agricultural enterprises. These were often regional businesses, including import substitution projects. Owing to government subsidies, the average interest rate on microloans offered by government-owned MFOs was 7% per annum. Contrastingly, the average interest rate in commercial MFOs was 46% per annum.
The State Duma is currently considering a draft law proposing an increase in the amount of a corporate microloan from ₽5 million (as of now) to ₽15 million. This would improve SMEs’ access to borrowings and allow entrepreneurs to finance larger and more capital-intensive projects.