Shadow disruption: a quarter of MFI clients are willing to go to "black lenders"
Every fourth active client of microfinanciers said that the inability to take more than one loan would significantly worsen their financial situation. This was shown by a survey conducted especially for Izvestia by the online financial platform Webbankir. And almost 25% of borrowers are ready to turn to "companies that will circumvent the ban", that is, in fact, to illegal lenders. And yet, which was positively assessed by experts, three quarters of MFI clients reported that the innovations will not affect them or they will find a reasonable way out of the situation. Whether the changes planned by the Central Bank will really hurt borrowers so much and what is their reaction - in the material of "Izvestia".
How will the ban on the number of loans in one hand affect borrowers?
Within the framework of the fight against the population's creditworthiness, the Central Bank has prepared a number of measures, including they relate to the new regulation of the MFI market. The regulator plans to introduce a "one loan in one hand" restriction in this area. However, this measure will apply to the most expensive products, for which the total cost of credit (TCO) exceeds 100% per annum, told in October in an interview with "Izvestia" head of the Department of non-banking lending Central Bank Ilya Kochetkov. Another measure, he said, concerns the cooling-off period after the repayment of the obligation. Also discussed and another limitation of the limit of the borrower's overpayment to 100% of the amount (now - 130%).
How will the proposed innovations affect active MFI borrowers? Their reaction is far from panic, the Webbankir survey showed. Almost 40% (38.7%) of respondents believe that the changes will not affect them. Most likely, these are people who use the services of microfinanciers, but are not too keen on loans - especially expensive ones.
A survey on how possible restrictions will affect MFI clients was conducted by the online financial platform Webbankir. The survey involved 1.8 thousand people across Russia aged 18 to 60 who are active borrowers (have borrowed at least once in the last year).
Another 36.8% said that the ban would create inconvenience for them, but they would be able to find the money they need. But 24.5% recognized that the inability to take more than one loan from an MFI would significantly worsen their financial situation.
Respondents were also asked (multiple answers were allowed) what they would do if they needed money and could not borrow from an MFI under the new rules. The majority (41.9%) of survey participants noted that they would increase their work load or find a part-time job, while another 39.9% would turn to friends or relatives for help. In 26.3% of cases, people will try to reduce their debt load in order to get an opportunity to take a loan from a bank.
However, 25.1% said they would find a company that would agree to issue a loan to bypass the ban. Since in the current situation of close attention of the market regulator to its participants, bona fide MFIs will not dare to take such a step, in fact, borrowers declared their readiness to use the services of illegal lenders.
Finally, 10.1% will pawn their valuables in a pawnshop, and 5.8% will find themselves in such a predicament that they will be forced to ask for donations.
Why borrowing limits won't affect everyone
It's clear that the people surveyed were reasoning hypothetically. Unfortunately, often not everyone can evaluate the legislative initiative until it has not entered into force and has not had a direct impact, commented in the press service of SRO "MIR". Indeed, as the survey showed, about two-thirds (64.7%) of its participants reported that they did not even know about the regulator's initiative.
In the organization of microfinanciers believe that limiting the number of loans per client and create a significant bias, and infringe on the rights of borrowers themselves. They refer to the fact that since the fourth quarter of this year, MFIs have already been subject to macroprudential limits (MPL) for banks. Earlier they were more lenient for microfinanciers.
Now, when calculating a borrower's MPL, MFIs are obliged to take into account in their monthly expenses all payments on loans and credits available to them. If the PDN turns out to be more than 50%, MFIs will be able to give such a person a loan only within the established MPL.
As noted in the press service of SRO "MIR", macroprudential limits have already shown their effectiveness and 80% of primary borrowers do not pass scoring, and the proposed administrative restrictions may affect the clients themselves.
- First, they do not take into account the debt load, because it still depends on the ratio of liabilities to income, not on the number of loans, - they say. - Secondly, if we believe the surveys, they may affect the growth of the illegal market.
Note: according to the Webbankir survey, the vast majority of MFI clients use the services of several companies at once. 21.8% take loans in two organizations, 19.7% - in three, 35.7% - in four or more. Only one in five (22.8%) apply for loans exclusively to one company.
Experts, on the contrary, see the survey results as positive in terms of borrowers' behavior.
- In our opinion, the survey results confirm and clearly demonstrate the useful potential of the regulator's initiative to introduce the "one loan per hand" rule. The market portfolio will definitely become more qualitative, the level of delinquency and the volume of cession will decrease," emphasized Evgenia Lazareva, head of the People's Front project "For Borrowers' Rights". - At the same time, MFI clients who use the strategy of reasonable consumption, do not feel the problem of restrictions and have a sane plan to reduce the credit burden - looking for a part-time job, reducing the debt load to go to the bank, etc.
This is a conscious, healthy and competent behavior, which will prevent from falling into bondage, she believes. Moreover, according to the human rights activist, the restrictive measure will apply only to expensive loans with an APR above 100%, so it will not prevent clients who turn to MFIs in case of acute need. Such clients have a stable income, calculate opportunities and are responsible for fulfillment of obligations, added Evgenia Lazareva.
Vadim Krapp, a leading analyst for bank ratings at Expert RA, also noted that the "one loan per hand" principle will limit financial accessibility only to clients who have several high-margin obligations in different MFIs at the same time. They will have to reconsider their consumption pattern, relying on only one loan.
- But we believe that for repeat solvent clients of microfinance organizations, loans with an interest rate of less than 100% per annum will be representative. They will not be subject to restrictions, - emphasized the analyst.
What is the danger of turning to "black creditors"?
However, Evgenia Lazareva believes that the share of 25% of those who are ready to apply for loans to illegals is a serious risk, first of all, for the people themselves.
Obviously, they are not able to realistically assess all the likely consequences. Respondents who think it is possible to turn to illegals are not ready to bear responsibility for their actions. And it will inevitably come. Liberalization of regulation will not help here, but will only aggravate the situation of such consumers, the head of the People's Front project has no doubt.
As Ilya Kochetkov told Izvestia in an interview, it is very important that citizens understand all the risks of turning to "black creditors".
- Such companies operate outside the legal framework and do not comply with the requirements established by law," said the Central Bank representative.
This threatens citizens with high interest rates, incorrect collection methods and other risks, he warned.
