Q1 microloans grow in volume

In 2016 Q1, microfinance organisations (MFOs) extended microloans worth of 44.0 billion rubles, 20.8% more than in the same period last year.

According to the Survey of Microfinance Organisation Indicators, growth was seen in microloans to individuals, while the volumes of the quarter’s microloans to individual entrepreneurs and legal entities were down 47.3% и 34.8%, respectively, on the same period last year.

As of the end of 2016 Q1, the total credit portfolio of microfinance organisations rose 16.4% against the same reading for the same date of the past year, to 69.0 billion rubles.

The growth in the segment is constrained by the complexity related to raising funds needed to run a microfinance business.

В результате снижения суммы денежных средств, предоставленных МФО как физическими (до 4,0 с 8,1 млрд рублей), так и юридическими лицами (до 10,5 с 11,0 млрд рублей), объем денежных средств, привлеченных МФО, сократился (до 14,5 с 19,1 млрд руб.).

As a result of contraction in funds provided to MFOs by both individuals (to 4.0 against 8.1 billion rubles) and legal entities (to 10.5 against 11.0 billion rubles), the amount of MFO-raised funds dropped (to 14.5 billion from 19.1 billion rubles).

In the reporting period MFOs recorded 2.3 billion rubles of net profits, a 15.1% growth over the same period last year.