Now the limiting size of obligations of the borrower to the lender is limited to 300%. This limit is valid from 1 January 2017. “The man took a loan of one thousand rubles, he must pay, in addition to the loan, another three thousand rubles,” — told about the current norm the head of the Duma Committee on financial markets and President of Association of regional banks Anatoly Aksakov in an interview with TASS.
MPs want to lower the limit value for the obligations up to 150%. That is, if a person borrowed 1 thousand rubles, its debt, together with default interest and penalties should not exceed 2,5 thousand rubles. “It is a good support for the citizens”, — said Aksakov.
“The bill will help ensure protection of the rights of citizens — debtors on consumer loans (borrowings) through the establishment of a legal mechanism that limits the possible abuses in this sphere”, — stated in the explanatory note to the bill.
Lenders will be more likely to go to court
Rules limiting the amount payable in respect of microzyme percent, can lead to the fact that MFIs are more hard-line approach to the assessment of the borrower, said TASS Deputy Director of the SRO “Microfinance and development” (“World”) Andrew Paranich. This can lead to a shortage of supply on the market of microloans and provide an additional incentive for the development of the illegal market, he said.
In addition, innovation can have a negative impact on payment discipline of debtors. And, it is possible that these measures will force some MFIs to adopt a decision to appeal to the court. Then the borrower will have to pay not only interest on Microsim, and legal costs, according to Puranic.
The CEO of online service of microcredit “Honestly” Andrey Petkov said in an interview with TASS that “it is extremely important to do without the “excesses on the ground. Otherwise, there is a chance to kill this niche and drive the microcredit in the shadows.”
“At present, only about 5-7% of the volume of overdue debts that are in collection agencies, debt accounts for microloans,” — said TASS Director of the National Association of professional collection agencies (NAPCA) Boris Voronin. The limitation of interest on loans will primarily affect the market of MFIs, and not the claimants. “For collection agencies here, procedural, little will change,” he added.
How much money cost
According to the Bank, the average total value of short-term consumer loans (for up to 1 month and for the sum to 30 thousand roubles) at the end of last year amounted to 599,4% per annum. We will remind that then it is not acting the restriction of the debtor’s obligations.
Market participants, talking about the work of their companies, prefer to operate with no annual indicators cost of credit, and referred to the interest that borrowers pay for the use of the money. “The average amount of short-term micro-loan is 6-7 thousand rubles. These microloans typically take less than a month, and the average amount of accrued interest during this time is 20-23% of the debt,” — said Andrey Paranich. In this case, the annual interest rate on the loan is approximately 1% per day, or about 365% per annum.
“The average amount of short-term loan is 10.2 thousand rubles, and the average term for which is a money — 20 days, the average rate of 1.6% per day. Thus, the average fee per loan to paycheck is 32%,” — said Andrey Petkov. It is approximately 584% per annum. However, the re-borrowers of the company lower the interest rate, it comes to 0.5% on the day, said Petkov. “That is, the overpayment is 10%, he explained. — Rate on credit cards in many banks higher.”
Who is to pay
Microloans in Russia is very popular. According to the Bank of Russia, in 2016 the number of people using them, reached 5.1 million people. This is a 54.9% more than the year before. They prefer to borrow a small amount: the average value of a microloan in 2016 amounted to 9 thousand rubles. A year earlier, people were a little more, an average of 10.4 thousand.
MFIs work mainly with borrowers with poor or no credit history, no possibility to officially confirm job and income, according to a study SRO “Mir”. Only every sixth client of MFIs has a positive credit history and could get a Bank loan.
Only 6% of borrowers earn more than 40 thousand rubles a month, half of the income does not exceed 25 thousand rubles.
The delay in salary is the reason for going to MFIs in 47% of borrowers follows from the study of SRO “Mir”.
The bill was sent to the government with a request to consider the document in a special order before the arrival of the deputies from vacation to September or October it could be considered in the first reading and, maybe, in November to accept, said Anatoly Aksakov.