In May 2024, Russian microfinance institutions (MFIs) issued a record volume of loans in a year and a half, according to the statistics of two credit bureaus.
According to Scoring Bureau, market participants provided loans to individuals for 81.4 billion rubles, concluding 6.34 million contracts. Relative to April, issues in monetary terms jumped by 9.9%, and in quantitative terms – by 13.8%. The volume of approved loans increased by 41.8% year-on-year.
According to statistics from the National Bureau of Credit Histories (NBCH), in May, Russians took 3.4 million loans worth 44.6 billion rubles (each bureau receives information from its pool of clients among MFIs). Compared to April, the increase in monetary terms was 6.7%, and in quantitative terms – 4.6%. Year-on-year, the volume of loans increased by 16.4%, but the indicators of MFIs for March – May were the best since the beginning of 2023.
With economic instability and high inflation, many people are looking for ways to cover unexpected expenses or increase their income quickly. Microloans offer quick access to funds, which makes them attractive for those who need money “here and now”, Artem Deev, head of the analytical department at AMarkets, explains.
MFIs often have more loyal requirements for borrowers than banks. This makes microloans available to those who cannot get credit from a bank due to poor credit history or low income. MFIs actively advertise their services using various channels – the Internet, television, radio, which makes microloans more well known and accessible to a wide range of the population, the expert emphasizes.
“Modern MFIs offer online services, which makes the process of obtaining a microcredit fast and convenient. The client can apply for a loan online within a few minutes without leaving home. The growth in demand for microloans does not mean that they are a safe and profitable financial instrument”, the analyst warns.