The Bank of Russia plans to impose restrictions on the number microcredito issued to the citizens in one hand during a calendar year. It is expected that this measure will affect “payday loans for the sum from 10 thousand or 15 thousand rubles, writes “Rossiyskaya Gazeta”.
Now, the newspaper reminds, according to United credit Bureau (OKB), more than half the people who apply for “payday loans, before trying to obtain a Bank loan, but get rejected.
According to the National Bureau of credit histories (nbki), the average size of a “loan till payday” is 11 thousand rubles.
The adviser of the service for protection of financial services consumers and minority shareholders of Bank of Russia Alexey Chirkov explained that it would be strange to impose restrictions regarding loans for small amounts, for example 200-300 rubles.
According to experts, it is necessary to look for opportunities to minimize the potential social risks in situations in which we are talking about multiple results to a single borrower amounts to 20 thousand rubles for on-lending.
It is expected that restrictive measures will be imposed through the base performance standards of microfinance institutions (MFIs).
New “rules of the game” along with the Central Bank to develop the industry Association of MFIs. According to the Deputy Director of SRO “Mir” Andrew Paranich, from the regulator will depend on many things. “The limitations set forth in simple numbers, we do not see. In our view, standards should be laid some principles for the regulation of this topic, but not the specific parameters of the number of loans, expressed in units,” he says.
According to Bank of Russia estimates, “payday loans account for slightly more than a quarter of all loans issued by microfinance organizations. For the first six months of 2016, amounting to 15.8 billion rubles.
Microfinance organizations in Russia are referred to as legal entities in the form of Fund, Autonomous non-commercial organization non-commercial partnership, partnership or business entity that provides to borrowers a loan in the amount not exceeding 1 million rubles. MFIs can issue loans to small businesses, individual entrepreneurs and citizens.
Such organizations are often mentioned in a negative context, in particular because of the loans “to pay” or with a daily accrual of interest on balance with rates at times exceeding Bank dozens of times, as well as abuse of the weak financial literacy.
In addition, MFI is known that not trying to sell “bad” debt collectors, as the average discounts of approximately more than 90% of face value, and try to extract maximum profit at the expense of “restructuring loans”.
In February of this year against the background of numerous scandals associated with the actions of collection agencies, General Prosecutor’s office demanded from the Central Bank to restore order in the microfinance market. The Central Bank said in response on the development of amendments to existing legislation, the purpose of which, in particular, will increase penalties for illegal lenders.