The Central Bank opposes the prohibition of microloans. What you need to know

The Central Bank believes that the introduction of restrictions on microloans in microfinance organizations (MFIs) can lead to an increase in the number of appeals to illegal lenders. Such structures completely lack legal mechanisms to protect borrowers, while the activities of MFIs are controlled and regulated by the Bank of Russia. What you need to know about microloans is in the Izvestia article.

The position of the regulator

• The Bank of Russia has warned that a complete ban on microloans in microfinance institutions may lead to an increase in the number of appeals to illegal creditors. As a result, if citizens are deprived of the opportunity to use the services of official MFIs, they will be forced to look for money in the gray market, where there are no mechanisms to protect borrowers. Unlike illegal schemes, microfinance companies are controlled by the Central Bank. This ensures transparency of the conditions and legality of the sector's work.

What are the dangers of microloans?

• The main feature of microloans is the high speed of registration and minimum requirements for the borrower. Often, a passport and a few minutes to fill out an application are enough to receive money. However, you have to pay for the increased cost of the loan for convenience and accessibility.

• Interest rates on microloans are significantly higher than on bank loans, and are often calculated in daily interest rather than annual interest, which leads to a rapid increase in debt if funds are not repaid on time. As a result, even a small amount taken for a short period of time can turn into a serious financial obligation if the borrower has not calculated his capabilities or is faced with a delay in payments.

• When receiving bank loans, customers undergo a strict solvency check. In return, they are offered a lower interest rate and flexible repayment terms. It is important for the borrower to take into account that a micro-loan can become a temporary help only with a clear understanding of the terms and conditions of its repayment. Otherwise, the easy availability of such a loan can lead to debt dependence and a deterioration in the financial situation.

The difference between an MFI and a bank

• MFIs operate under a simplified registration system and approve loans within a few minutes, making them accessible to a wide range of borrowers. Their capital and risk control requirements are less stringent than those of banks, which allows them to act more flexibly and promptly.

• The credit policy of banks is based on a thorough assessment of the customer's solvency. This reduces the likelihood of non-repayment, but makes the process of receiving funds longer. Unlike microfinance institutions, banks are focused on long-term customer relationships and provide a wider range of financial products.

Changing legislation

• The State Duma has already supported in the first reading a draft law aimed at step-by-step tightening of the rules for providing consumer loans by microfinance companies. For example, starting in July 2026, citizens will be allowed to have no more than two active loans, each of which has a full cost of over 200% per annum. And from the beginning of 2027, it will be permissible to conclude only one contract with an overpayment above 100% per annum. It also provides for a three-day "cooling-off period" after the closure of the previous loan before the client can apply for a new one, and the total overpayment on loans should not exceed 100% per annum.

Interest rates under pressure: the microloan market is facing tough changes

Parliament will consider one of the most high-profile bills in the field of consumer lending in recent years

• In addition, the initiative includes increasing the maximum allowable loan amount for legal entities and entrepreneurs from the current five to 15 million rubles. The main goal of the project is to reduce the credit dependence of the population and provide more reliable protection of the interests of clients of financial institutions. It is assumed that the principle of "one loan to one borrower" will prevent the accumulation of excess debts and help avoid situations when citizens are forced to take out a new loan immediately after paying off the previous one.