Microfinance organisations lend over ₽1 trillion in 2023
The total amount of consumer loans issued by microfinance organisations (MFOs) rose by 28% to ₽900 billion compared to 2022. Loans they provided to small and medium-sized businesses increased by 50% (₽105 billion). MFO borrowers still preferred remote financial services. The share of online lending increased to 75% compared to 66% in 2022.
Measures taken by the Bank of Russia helped reduce the household debt burden. In 2023, the regulator introduced caps on the total cost of a loan and the daily interest rate, driving the market rates down. MFOs ceased to issue loans at rates exceeding 0.8% per day. In 2023 Q4, the major portion of loans (71%) was given at rates of
The introduction of macroprudential limits contributed to a decline in the share of loans issued to households with a debt service-to-income ratio of over 80%. As of the end of 2023, the portion of such loans was 14% vs 30% in 2023 Q1.
Read more in Microfinance Market Trends in 2023.