Microloans in the rf Are Growing, with Most Borrowers Unable to Cope with Their Debts

The russian microfinance organization (MFO) sector continues to grow amid stricter lending requirements from banks, pushing the population into an even deeper debt trap.

In the second quarter of 2025, the volume of microloans issued grew by 7 % on a quarterly basis – to $6.6 billion. The MFO loan portfolio also increased by 7 % and reached $9.2 billion. Growth was recorded in both the retail segment (+6 %) and the business segment (+23 %).

Online lending continues to dominate: in the retail segment, its share increased to 91 %, and in the business segment – to 62 %. At the same time, the quality of loans is deteriorating. Only about 30 % of microloans are serviced properly. 15 % of loans are overdue. In every fourth case, debtors fail to make payments on the first attempt.

The financial spiral is only deepening: almost half of new loans (48 %) are taken out immediately after the repayment of previous ones, and in 20 % of cases, the total debt increases. For many russians, microloans are not a way out, but a reality, where old debts are paid off with new ones.