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Read original →The End of 'Easy Money': Microloan Market Reaches Plateau
Analysis of the microfinance market: MFO portfolios have shrunk 5%, biometric verification and 'cooling-off periods' introduced, up to 40% of companies may exit the market. Central Bank data and forecasts through 2026.
AI summary
The microloan market in Russia is experiencing a period of slowdown after years of growth: the MFO portfolio increased by 41% in 2024, but in 2025 growth slowed to 5-16%. Tightening regulation—the introduction of a "cooling-off period," a ban on automatic calls, biometric requirements, and self-exclusion from loans—led to an 8% decline in industry profits and an increase in overdue debt to 28%. The market is entering a consolidation phase: by the end of 2026, up to 15-40% of MFOs may disappear, with only large players with access to capital and developed IT infrastructure surviving.
According to Central Bank data, the aggregate portfolio of microfinance organizations (MFOs) grew to 623 billion rubles by the end of 2024 (up 41% year-over-year). For comparison: in 2023, the portfolio increased by 22% to approximately 550 billion rubles.
However, in 2025 the regulator is already recording a slowdown in market growth. According to the Central Bank's review, the total value of microloans at the end of the third quarter of 2025 stood at 506 billion rubles (down 5% year-over-year). Industry associations and analysts expectthat by the end of 2025, MFO portfolio growth will slow to 5–16%.
Regulation as a turning point
In the second half of 2025, the microfinance market faced a series of regulatory changes that significantly impacted MFO operational processes.
Starting September 1, 2025, measures came into effect prohibiting mass and automated calls to clients without their prior consent. During the same period, a "cooling-off period" mechanism was launched. Borrowers gain access to funds: after 4 hours for loan amounts from 50,000 to 200,000 rubles; after 48 hours for larger amounts.
Also in 2025, a self-exclusion mechanism for credits and loans was implemented, allowing citizens to voluntarily restrict the ability to take out loans in their name. According to analysts, the share of rejections due to active self-exclusion amounted to 1–2% of total applications.
Additionally, the regulator began phasing out the use of credit report data from credit bureaus (BKIs) as a source of information about borrower income when calculating the debt burden indicator (PDN), strengthening requirements for official income verification.