Russians are increasingly turning to microloans with annual interest rates of 300%, according to Russian media reports.

The tightening of lending criteria in banks is prompting Russians to increasingly rely on "payday loans" with an annual interest rate of 292%.

https://epravda.com.ua/rus/finances/rossiyane-nachali-massovo-brat-kredity-pod-300-godovyh-802659/2025-01-31 09:07:27

This is reported by the Russian publication The Moscow Times, citing "RBK".

In December, 70% of new loans were issued by microfinance organizations (MFOs), compared to 47.4% a year earlier.

The significance of microloans also increased within the overall lending structure: in December, MFO products accounted for 13.6% of the total volume of loans issued in Russia, whereas at the end of 2023, this figure was nearly 3.5 times lower at 3.9%.

Previously, following Russia's full-scale invasion of Ukraine, the share of MFOs reached 62.7% in terms of the number of loans and 8.7% in terms of their volume. According to the Central Bank of Russia, from January to September 2024, MFOs issued loans totaling 1.26 trillion rubles to Russians, which is 23.3% more than the previous year.

Reminder:

Interest rates on consumer loans in Russian banks at the beginning of November 2024 ranged from 25% to 38% per annum, but by November 19, the maximum rate had increased to 44%..

Kremlin leader Vladimir Putin is increasingly concerned about issues in Russia's military economy, especially as Donald Trump actively calls for an end to the conflict in Ukraine.