Published on: 2026-11-05
Source: Mainfin Bank –
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The first three weeks of the Bank of Russia’s ban on issuing more than two expensive loans have significantly transformed the Russian microfinance market. The volume of traditional short-term payday loans, characterized by high interest rates, has decreased by 14–18%. Companies are quickly redirecting clients to medium-term products like Installment, which comply with the Central Bank’s new requirements for the maximum credit rate (MCR) not exceeding 200%.
Regulatory profile and company status
The Bank of Russia is the main regulator of the financial sector of the Russian Federation. As part of the policy to protect borrowers, strict restrictions have been introduced aimed at preventing excessive debt obligations of citizens. One of the key innovations was the establishment of a maximum total credit cost (TCC) at the level of 200% starting from October 1, 2026.
Financial and operational results
According to data from the Bank of Russia, the structure of the loan portfolio of microfinance organizations has undergone significant changes. Against the backdrop of a decline in short-term loans, the share of medium-term Installment products has increased significantly. Thus, the share of short-term loans fell from 42–45% to 32–35%, while the share of Installment grew from 38–40% to 48–52%. The target segment of POS loans also demonstrated confident growth thanks to lower rates and simplified lending conditions.
Risk analysis and market impact
The transition of microfinance companies to new product lines is associated with a number of challenges. Firstly, companies need to adapt their business models to the new regulatory conditions, including the implementation of new data processing technologies and increased transparency of credit operations. Secondly, there is a risk of an increase in the number of defaults among borrowers who face restrictions on the ability to obtain additional loans.
Answers to frequently asked questions (FAQ)
- What should a borrower with two active loans do?
If the borrower already has two current agreements, they are offered to use the refinancing service or obtain a new loan for up to six months with a reduced rate corresponding to the established regulations. - When is a further rate cut expected?
Starting from April 2027, a new regulation will come into force, according to which borrowers will be able to receive only one loan with an annual interest rate above 100%.
Thus, the initial results of the Bank of Russia’s regulations demonstrate significant changes in the structure of the microfinance market, aimed at protecting the interests of borrowers and ensuring the sustainable development of the sector.
14:55 20.10.2026
Source: Bank of Russia: Restrictions for MFIs from October 1 and Bank of Russia: MFIs are changing the structure of issuances.
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