Russian microfinance companies (MCCs) intend to offer credit lines in 2024 or explore that possibility. In particular, Seimer, Webbankir and Moneyman plan to launch the product in one form or another, Kommersant writes.
The limit amounts of such credit lines will be 15 to 50 thousand rubles and will be opened for a period of six months. Rates are planned to be half those of payday loans.
In the future, microfinance experts believe, lines of credit could represent between 5% and a third of the medium-term loan market. Their peculiarity is that they increase the borrower’s formal debt load much less and help banks comply with macroprudential limits.
- On April 24, updated basic rules for microfinance organizations (MFIs) came into force in Russia, which, in particular, tighten the rules for verifying the identity and data of borrowers for online issuances. Previously, a photocopy of the passport and a telephone number were enough to do this.
- Since the beginning of 2023, microfinance organizations have increasingly refused to grant loans to Russians due to new Central Bank regulations. The number of approvals fell by approximately 10%. Among the main factors limiting growth are limitations on the issuance of subprime loans, new regulatory measures and the socioeconomic situation.
Author:
Karina Pardaeva
Source: RB
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