The Central Bank proposed to reduce the maximum overpayment of loans to microfinance organizations from 130 to 100%

According to him, despite the reduction of the total cost of loans to 292% and the reduction of the maximum overpayment to 130%, loans from microfinance organizations remain expensive for citizens, since most of them granted at the maximum rate.

Kochetkov noted that the regulator sees the opportunity to further reduce the daily interest rate and is also developing measures to encourage microfinance organizations to offer more favorable conditions to reliable borrowers.

According to the regulator, reducing the maximum overpayment will help reduce the debt burden. As a temporary measure, the Central Bank proposes limiting overpayments to 100%. This means that for a loan of one thousand rubles, taking into account all interest and penalties, the borrower will return no more than 2 thousand rubles, Kochetkov explained.

• In early 2023, microfinance organizations 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.
• As Izvestia reported, last spring microfinance organizations tightened the rules for providing online loans to Russians. Previously, it was enough to present a copy of the passport and the telephone number for registration. After the introduction of new standards, companies must comply with at least three of the ten procedures prescribed in these requirements. For example, it is necessary to check the validity of the borrower’s passport, the authenticity of his photograph, credit history, and also make sure that the account and phone number indicated in the application belong to the borrower.