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Interest rates on microloans may be halved in Russia
The State Duma is discussing the reduction of the interest rate cap for consumer loans from the current 1% to 0.5% per day instead of the proposed 0.8%.
RBC reports, citing a source, that such a proposal was made by those lobbying the interests of banks, but the source did not specify their names.
The document was submitted to the State Duma in November 2021. The amendments are aimed at tightening the conditions for issuing loans. The changes will affect the law “On consumer credit (loan)” (353-FZ) and will affect the business of microfinance organizations (MFOs) that issue the most expensive payday loans.
Market participants criticized the rate cut to 0.5% per day. They believe that such a decision will play into the hands of the black market and tighten the risk policy towards borrowers. Thus, many borrowers for whom banks do not approve a loan will not be able to borrow money from loans and from MFIs. For many micro-organizations, the work in the market will become unprofitable, and the players will begin to leave the market, and the rest will try to change the business model.
According to RBC