Translation. Region: Russian Federation –
Source: Mainfin Bank –
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Image: mainfin.ru
Why did the authorities abandon the idea of banning microfinance organizations?
The Central Bank did not support the idea of a complete ban on the activity microfinance companiesRegulatory officials cite several reasons why microfinance organizations should continue operating:
The services of such companies are in demand on the market, and the number of borrowers exceeds 15 million people;
microloans They allow for quick and easy cash withdrawals; microfinance products are also popular in the POS loan segment, which citizens can apply for directly in stores; the microfinance services market is actively developing and improving.
"We need to focus not on banning microfinance organizations, but on improving the quality of services, including combating unscrupulous market players and fraudsters," the regulator's representative noted.
By the end of 2025, the microfinance services market is expected to grow by between 5% and 16%, half the 2024 figures. However, MFI services remain in demand, and the total amount of problem debt owed by clients of such companies exceeds 1.1 trillion rubles.
How is microloan regulation being tightened in Russia?
The authorities abandoned the idea of banning microfinance organizations, but decided to focus on tightening regulation. Among the most significant changes in the microcredit sector:
In July 2025, microfinance organizations (MFOs) were prohibited from using unofficial income data; in September of last year, lenders were prohibited from making mass calls to clients; also, starting in the fall, MFOs must verify loan recipients – money can only be sent to the person specified in the loan agreement; in January 2026, it was prohibited to issue more than one loan per citizen with an interest rate exceeding 200% per annum; in the spring of 2026, MFOs will identify borrowers only by biometrics (with exemptions made only for small companies); in April 2026, the maximum cost of a microloan will be reduced from 130 to 100% of the original amount; in 2027, MFOs will be prohibited from entering into additional agreements under which lenders previously included fines and penalties in the loan principal.
As a result, experts predict a crisis in the microfinance services market due to the new laws. By the end of 2026, approximately 150 companies, or over 15% of all MFIs in Russia, could exit the industry.
10:00 01/20/2026
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