Translation. Region: Russian Federal
Source: Central Bank of Russia –
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The market driver in Q2 2025 was loans with a moderate interest rate, where the total cost of credit (TCC) does not exceed 100% per annum. First of all, this is the issuance of new tranches within previously opened credit lines for the purchase of goods on marketplaces and online retail outlets. At the same time, the share of the most expensive loans decreased to 47.6%, falling below half of quarterly consumer loans issued by microfinance organizations (MFOs) for the first time.
The volume of loans issued by microfinance organizations associated with the largest marketplaces and non-banking settlement credit organizations once again exceeded the figures of independent microfinance organizations, which, on the contrary, have been declining in loans for the second quarter in a row.
The quality of the MFI loan portfolio has worsened in both the business and consumer loan segments: the level of overdue loans over 90 days has increased after a long decline. The main reason was the maturing of overdue loans on consumer loans issued in Q4 2024 and Q1 2025. Only 11% of the volume of loans issued during this period ended in full repayment, with clients not taking out new loans. Almost half of the loans were issued to borrowers who, after repaying one loan, took out a new one and fell into a debt spiral, and in 20% of cases, their debt increased. Among loans with overdue payments, in every fourth case, borrowers failed to cope with the debt burden on the first payment. On the one hand, this indicates excessive indebtedness of citizens, and on the other, the continued increased risk appetite of MFIs.
The introduction of a new system of credit will help reduce the debt burden of citizens the obligation to take into account only the official income of the borrower when assessing his debt burden, and also limiting the number of expensive loans in operation at the same timeand establishing a cooling-off period between them.
Read more in"Trends in the MFI market for the second quarter of 2025".
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