According to the results of July, microfinance specialists observe the maximum values ​​for the utilization of the limit in several years

According to the results of July, microfinance specialists observe the maximum values ​​for several years of utilization of the limit (the share of funds used by the borrower from the approved amount) for short loans. The situation was the result of rising prices for consumer goods and a decrease in the approval of limits themselves against the backdrop of regulatory tightening. So far, companies do not expect an increase in defaults, despite the fact that the most risky borrowers choose the maximum limits.

According to the results of June and July, the limit on short-term payday loans (PDL, up to 30 days and less than 30,000 rubles) chosen by borrowers reached its highest level since 2020 – 88%, follows from MoneyMan data. Since the beginning of the year, the level has grown by 5 percentage points. “The trend is related to the general rise in prices: borrowers need more funds for their needs,” MoneyMan explains.

Microfinance companies surveyed by Kommersant confirm the upward trend in utilization of the approved limit. This is due, in addition to inflation, to the adjustment of scoring and issuance policies by companies in accordance with the new regulatory and economic conditions.

On average, in 2023, the level of utilization of the limit in the PDL segment reached its maximum value in recent years, notes Ion Boloboshencu, Risk Director at Eqvanta Group. In July, limit selectivity was 73%, the highest since spring 2022, according to Webbankir.

Until the end of the year, the indicator may show significant fluctuations, says Roman Makarov, general director of the IFC Zaimer. “Significant regulatory changes this year stimulate increased requirements for customers and reduce the limits available to them. These measures are aimed both at optimizing risks against the background of a future decrease in marginality, and at meeting the requirements of the regulator for the debt burden of borrowers,” he explains.

However, when assessing the chosen limit, one should not forget that last year the amounts of these limits were cut by MFIs by 95%, Elman Mehdiyev, chairman of the board of SRO Mir, notes. “In the microfinance market in 2023, the practice of issuing short-term microloans with low checks has become more popular. Such a strategy allows you to more effectively allocate your capital, increase margins and increase your client base,” confirms Igor Alekseev, Senior Director for Banking Ratings at Expert RA.

“Lenders began to refuse more often and limit the approved amounts to clients with a high debt load,” Ion Bolobosencu describes the situation. At the same time, it is the more risky clients that “choose the limits provided to them to the maximum extent,” emphasized Oleg Berdasov, Head of Portfolio Management at MigCredit.

However, the relationship between default and utilization rate is conditional, market participants agree, it depends on the root cause that led to the increase in utilization. “In this case, there is no talk of a negative impact of the increase in utilization on default, but rather the opposite, it has a positive effect,” Mr. Boloboshencu is sure. A change in the utilization rate of the limit, rather, is reflected in interest income – marketing and scoring costs are not tied to the size of the loan, but a decrease or increase in the utilization of the limit leads to a decrease or increase in the profitability of the loan, respectively, MoneyMan adds.

According to the online auction for the sale of overdue debts Debex, in January-July 2023, MFIs put up for sale on the site of delay for 21.5 billion rubles, for the same period last year – 17.5 billion rubles. Net interest income of the 30 largest IFCs, which disclosed their financial statements for the first quarter of this year, exceeded 14.17 billion rubles, which is almost 39% higher than last year. The companies’ net profit (see Kommersant dated May 31) almost doubled to 6.11 billion rubles.

Polina Trifonova