The deputy proposed to limit the issuance of microloans to Russians: experts disagreed in their assessments

MFIs may be required to check the solvency of borrowers and their debt load

The authorities want to reduce the debt burden on Russians by imposing restrictions on the number of microloans issued to two or three per person. State Duma deputy Alexander Aksyonenko sent a letter to the Bank of Russia with a request to consider the possibility of introducing such a norm. The parliamentarian added that today, in order to obtain a loan from a microfinance organization (MFI), confirmation of the solvency of a citizen is not required and his debt load is not checked. This should also be changed. Whether the proposed measures will help reduce the level of debt load of Russians, MK discussed with experts.

The measure proposed by the deputy can be called a compromise. In October 2020, the State Duma already discussed the possibility of a complete ban on the activities of MFIs in Russia with a 100% write-off of the debts of their borrowers. But this idea was rejected because of the risk of such organizations going into the shadows, because then it would become even more difficult to help their borrowers.

Meanwhile, over the past few years, the work of MFIs has repeatedly been subjected to adjustments at the legislative level. In particular, requirements were introduced for the obligatory obtaining of a license from the Bank of Russia, a limiting rate of 1% per day (no more than 365% per year) was introduced, and a limit was introduced on the maximum amount of overpayment on a loan: no more than 150% of the original amount . However, deputy Aksyonenko considered all these measures insufficient and suggested that the regulator limit the issuance of microloans – no more than two or three per person, as well as check the solvency of borrowers and their debt load.

The problem of debt burden in our country really exists. According to the Scoring Bureau, at the end of 2022, the share of borrowers with four or more loans (including micro loans) increased from 11.6% to 13.8%. In fact, every seventh borrower has an exorbitant debt load. The Bank of Russia clarified that their number had grown to 5.2 million by the middle of last year, and from January to early March 2023 their number increased by 5.4%. According to a member of the Russian Bar Association, arbitration manager Semyon Nikolaev, 70% of loan debtors have loans from MFIs, with two or more obligations. “And there are such debtors who have 40-50 loans in MFIs! — said the expert. “At the same time, the average loan amount is 30-35 thousand rubles.”

At the same time, it is incorrect to determine the debt load of a citizen only by the number of loan agreements in his hands. “One person can have 5 small loans, say, in the amount of 100 thousand rubles with monthly payments of 20 thousand rubles, and the other can have one mortgage loan for 5 million rubles with a payment of 30 thousand rubles per month,” explains the director of Marketing of the National Bureau of Credit Histories (NBCH) Alexey Volkov. In other words, a citizen’s debt burden is determined not by the number of loans he services, but by the ratio of monthly payments on such obligations to his income. The debt load indicator is the debt load indicator (LDR), the average level of which is currently at a quite acceptable value in the region of 20%. In other words, the average Russian borrower repays a fifth of his income on his loan obligations every month. At the same time, a problematic PDN can be considered if its level approaches 50% or exceeds it, the expert pointed out.

Experts assess the new parliamentary initiative regarding microloans in different ways. “Restrictions will help protect conscientious citizens from fraudsters,” says Polina Gusyatnikova, senior managing partner at PG Partners law firm. “We are regularly approached by those for whom the attackers issue microloans in MFIs. Fraudsters most often act “fan”. They apply to 10-20 organizations at once and often receive money from most of them. If the number of loans is in principle limited, then it will be more difficult for fraudsters to use such a scheme.”

But the financial ombudsman of the ARB, Doctor of Economic Sciences Pavel Medvedev, critically assessed the initiative. According to the expert, the debt load itself is incorrectly calculated, today it is the ratio of all loan payments to a person’s income. A more adequate way to measure this burden is to subtract the borrower’s living wage from the total income. “Imagine a person whose entire income is equal to or slightly more than the subsistence minimum, from which even a penny cannot be used to repay a loan (after all, that’s what the subsistence minimum is for!), And he is allowed to give up to 50% to pay off his financial obligations under the current formula,” says the expert. Without a correct measurement of the debt burden, it will not be possible to overcome the problem of debt load of borrowers, even if the Central Bank approves the deputy initiative, the source of MK believes.