The economist assessed the consequences of limiting the number of microloans for borrowers

Limiting the number of microloans per borrower can be an effective measure to reduce the debt burden on households, but its consequences for citizens and the market of microfinance organizations (MFIs) will be ambiguous. Ekaterina Kosareva, managing partner of the VMT Consult analytical agency, told Izvestia on December 16.

"A legal restriction is not able to completely eliminate the economic motivation of people to borrow money in difficult life situations. Practice shows that borrowers who are officially denied another microcredit can turn to friends, relatives, acquaintances, or use the services of a "brother", "matchmaker", "friend", etc. Such informal loans are practically unregulated in the legal field, and interest rates, terms and consequences remain here at the discretion of the parties," the economist explained, noting that this creates the risk of redistributing the debt burden into "shadow" forms of borrowing.

According to her, the introduction of restrictions will not be a critical blow for the microfinance organizations market. Large and medium-sized MFOs have a sufficient margin of safety and diversified business models, while small companies already operate in highly competitive conditions. The new requirements are likely to lead to a review of credit products, stricter scoring and a more thorough assessment of customer solvency, which in the future may increase the sustainability of the industry.

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At the same time, the expert stressed that the protection of borrowers should not be limited only to quantitative prohibitions. An important role is played by the development of financial literacy and the availability of understandable information about the real cost of loans, fines and the consequences of delays. Pre—trial dispute resolution mechanisms, such as financial ombudsmen and mediation procedures, may become an additional element of protection.

"Speaking about the possible negative consequences for borrowers who already have several microloans, the risks cannot be ignored.: Tight limits can encourage the desire to refinance debts through informal channels where there are no legal guarantees, or push for delays if there are no alternative sources of funds. In such situations, the borrower finds himself in a position where legal regulation conflicts with real needs, which requires correct law enforcement practices and flexible support mechanisms, such as debt restructuring programs under the supervision of judicial or administrative authorities," Kosareva said.

On the same day, Anatoly Aksakov, chairman of the State Duma Committee on the Financial Market, announced that the State Duma had adopted a law in the second and third readings that would gradually tighten the rules for issuing consumer loans to citizens. According to the document, starting from April 1 next year, the amount of overpayment for such loans will be reduced from 130 to 100% per annum. In addition, starting in October 2026, Russians will be able to have no more than two loan agreements with a full value of more than 200% per annum each. And starting in April 2027, lenders will be prohibited from issuing more than one loan per person with a full cost of over 100% per annum.

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