Overdue debt in CCCs’ microloan portfolio declines: 2024 Q1 results
As of the end of 2024 Q1, the proportion of non-performing microloans overdue for 90 or more days dropped to 14.3%, which is a two-year low.
Consumer credit cooperatives (CCCs) are able to maintain the quality of the portfolio by applying a responsible approach to assessing a potential borrower’s risk, among other things. Cooperatives may simultaneously use several methods to estimate a customer’s creditworthiness checking the borrower in the databases of the Federal Tax Service and Federal Bailiffs Service of Russia, requesting the credit history, demanding the information on the employer or a personal income certificate, and analysing personal data.
According to the survey, more than a third of cooperatives issue business microloans. The interest rate on them is comparable with that on bank loans for small and medium-sized enterprises.
The most significant trend in business development plans is digitalisation. Nearly 40% of the surveyed CCCs are going to expand the online segment. In the future, the industry will be considerably affected by a recently adopted law establishing tougher rules for cooperatives to enter the market.
More details are available in the Bank of Russia’s analytical material Trends in the Market of Consumer Credit Cooperatives.