Anti-pandemic restrictions in 2020 do not affect quality of growing SME microloan portfolio
Overdue debt in the segment of microloans to small businesses decreased to its record low as of the end of 2020. Over the year, the portion of loans overdue for more than 90 days dropped to 5.7%, which is considerably below the market average (28.9%). These data are given in the new issue of the MFO Business Financing Market Trends.
Overdue debt was reduced owing to organisations’ active work with borrowers and various support measures (restructuring, loan repayment holidays, individual terms, etc.).
The publication also contains the analysis of microfinance organisations’ business portfolio in the constituent territories of the Russian Federation. According to this information, the highest growth rates of both the portfolio and the number of new borrowers over 2020 were recorded in regions where small businesses demonstrated low performance. Overall, the authors note that the demand for MFO business financing is steady, which creates the potential for the future development of this segment.