The volume of microloans issued in Russia has soared by 300% year-on-year in Q3 2025. According to the Sravni financial services marketplace cited by Gazeta.Ru, the average loan application size has also risen by 32% to RUR 21,152 ($260).
According to Igor Rastorguyev, Lead Analyst at AMarkets, this spike in demand for microloans is a direct consequence of the current macroeconomic climate and is likely a temporary phenomenon.
The expert explains that the dramatic increase is primarily driven by a tightening of bank lending standards against the backdrop of a high key rate. Banks are forced to comply with strict macroprudential limits, particularly for borrowers with a high debt burden. This is pushing many toward the microfinance sector as a more accessible alternative, the expert notes.
He points out, however, that conditions are shifting. The Bank of Russia has already cut the key rate to 17%, which could pave the way for a gradual revival in bank lending. Furthermore, as of July 2025, the maximum allowable overpayment on microloans was reduced from 130% to 100% under new regulations. Future regulatory plans include the so-called “one-loan rule” and a mandatory cooling-off period between loans. These measures are designed to reduce the population’s debt burden and prevent borrowers from falling into debt traps.
“A positive signal can be seen in the changing market structure — the share of so-called ‘bank-affiliated microfinance institutions’, which are affiliated with major banks, has grown to 60%. These companies offer lower interest rates and more transparent terms, which is making the market more orderly,” emphasizes Igor Rastorguyev. “Furthermore, a significant portion of new borrowers have been sourced through marketplaces, where loans are issued for the purchase of specific goods under acceptable terms. The average Total Cost of Credit (TCC) for such products does not exceed 100% per annum.”
The current situation represents a period of the financial system adapting to tight monetary conditions. “As inflation stabilizes and the key rate decreases, we anticipate a gradual return of demand to the banking sector, where lending terms have traditionally been more favorable,” the analyst concludes.