Official statistics from the CBR Bank says that by the end of last year, the number of payday loans issued to legal entities decreased by one third compared with the same period in 2017. At the same time, the total amount of money issued in loans in this sector did not decrease so much – only by 6%. This happened due to the fact that the amount increased for the majority of payday loans issued.
Decline demand for payday loans
It turns out that the decline in demand for payday loans among legal entities compensated for the average amount of loans issued. Thus, microfinance companies working with legal entities should not have suffered losses in this sector.
More than 30% of Payday Loans issued less loans at the end of last year to companies and individual entrepreneurs compared to the same period in 2017. Approximately 7.5 thousand contracts were signed. However, the average amount issued as a payday loan to organizations grew by almost 44%, and to individual entrepreneurs by 40%.
Repeatedly, we wrote that the overall demand for payday loans is growing in all regions of the country year after year. Experts believe that legal entities are less likely to take loans because contracts are concluded for them for longer periods than for individuals. In addition, it is usually always about larger amounts. If a simple borrower can easily afford a loan for two to three weeks in the amount of 10-20 thousand rubles, then organizations often talk about 1 million rubles or more. And, of course, the period in this case also increases significantly.
But, those organizations that have not ceased to be credited to the Payday Loan, began to draw up contracts for larger amounts. This happened, most likely, due to the fact that last year amendments were made to the law “On microfinance activities and microfinance organizations”, enabling microfinance organizations to issue loans up to 3 million rubles.
By the way, this year, most likely, they will approve a bill that will allow issuing payday loans to legal entities for 5 million rubles. In addition, a project is being developed in the government of the Russian Federation aimed at improving the conditions so that payday loans for small business become more accessible. Therefore, in the future it is expected that loans for legal entities will grow in the number of contracts and on the average check.