MFO market transforms in anticipation of reform
In 2025 Q1, microfinance organisations (MFOs) issued microloans worth ₽497 billion, which is a 1% quarter-on-quarter decline. There are several reasons behind this slowdown in the retail segment. Specifically, microloan maturities increased, and microloans in certain categories became more expensive due to the suspension of the effective interest rate limit. Another contributing factor was the high-base effect of 2024 Q4. The corporate segment saw a seasonal drop in demand.
The market of consumer microloans continues to transform under the influence of macroprudential limits (MPLs) and in anticipation of restrictions to be imposed on the number of simultaneously existing microloans.
Companies are seeking to attract new higher-quality borrowers and are offering financial solutions to retain repeat clients for longer.
Nearly half of the microloans granted in 2025 Q1 had maturities of over one year. More than a quarter of consumer microloans were issued under agreements providing for a credit limit, which are essentially similar to bank credit cards. The average amount of a consumer microloan was also up, reaching ₽21,000 over the year.
Clients continued to demonstrate demand for online microloans on marketplaces as well as for POS financing, which was attributed to lower interest rates and a grace period when interest does not accrue. The above financial products accounted for over 60% of the microloans provided to new borrowers.
The share of car microloans expanded sixfold to 9%, with these microloans frequently being issued to borrowers with the highest debt service-to-income ratios. To prevent risks from accumulating, the Bank of Russia will introduce MPLs in this segment in 2025 Q3.
The percentage of microloans overdue for more than 90 days in MFOs’ overall portfolio continued to decrease, reaching 27.5%. The key risks were still concentrated in the retail segment. Nevertheless, the quality of the consumer portfolio was gradually improving, mainly on account of new borrowers and because certain MFOs sold overdue microloans at early stages.
More details are available in the publication MFO Market Trends in 2025 Q1.