In January and February 2024, microloan applications from Russians requesting amounts of 50 thousand rubles accounted for 7.9% of all requests. This figure is 1.9 times lower than in January and February 2023, when such requests made up 14.8% of the total. These numbers were shared with socialbites.ca by the press service of the online alternative lending platform Moneyman.
At first, the demand for these specific loan sizes stemmed largely from the need to finance targeted, pricey purchases, such as durable goods. Moneyman noted that the financial behavior of borrowers shifted over the year: larger loans increasingly served unplanned expenses and urgent needs, rather than merely financing planned purchases.
The observed shift was also shaped by changing behavior among so-called banking-profile borrowers, whose influx into the microfinance sector intensified beginning in 2023. These are individuals who, for various reasons, were rejected by traditional banks, which in turn boosted their interest in microfinance institutions.
According to Moneyman, many of these customers are accustomed to requesting substantial sums. Yet the willingness of microfinance organizations to accommodate their demands is tempered by the need to balance lenders’ risk and interests with the constraints imposed by the Central Bank. As a result, faced with prior rejections or lower approved limits, these borrowers tend to reduce their appetite and scale back the amounts they seek, stated Alexander Pustovit, the company’s CEO.
The accompanying analysis was conducted in March 2024. Data for January–February in 2023 and 2024 were compared, with the study using a sample of over 100 thousand microloan requests received from across Russia in each period.
Earlier reports from socialbites.ca discussed what Russians should do if their loan application is denied, reflecting ongoing concerns about access to credit in the current climate.