“The average amount of debt on a microloan, subject to collection, over the past two years has decreased by 44%. If in 2017 it was at the level of 19.8 thousand rubles, in 2018 -14.5 thousand rubles, in 2019 -11 thousand rubles,” – experts calculated.

NAPCA believes that this trend was influenced by a combination of several factors: the tightening of regulation of the microfinance market, in particular, the gradual reduction of the maximum amount of accrued interest, the restoration of payment discipline of citizens after the recession of 2015-2016 and the development of the Institute of credit histories.

Fedor Vahata, the General Director of M.B.A. Finance, also linked the reduction of the average “delay” with changes in regulation. “We believe that the decline is due to changes in the regulation of the microfinance market: the credit history of borrowers is carefully checked, interest rates and terms of loans are regulated,” – he said.

NAPCA President Elman Mekhtiyev expects that in the future, the average amount of overdue debt of MFIs borrowers will continue to decline, one of the factors will be the debt load indicator introduced on October 1. “In the future, the average amount of overdue debt will continue to decline, including the introduction of the debt limit indicator, which will limit the issuance of borrowers with a high debt load. As a result, the number of defaults and the average amount of debt will decrease. In the future, in 12 months, it may fall by 5-10%, ” he said.

From October 1, Russian banks and microfinance institutions should calculate the debt burden of borrowers when issuing consumer loans. While microfinance organization that provides loans to borrowers with DBB above 50%, will bear an additional burden on capital in the amount of 50% of the loan amount, as from 1 January 2020 — 65%.