The Central Bank of Russia published calculations showing that microfinance organisations (MFOs) increased lending to businesses by nearly a quarter in 2024, extending almost RUB 130 billion in corporate microloans. By year-end, 75,000 small and medium-sized enterprises (SMEs) and individual entrepreneurs were MFO clients. Commercial MFOs issued more microloans than government-owned MFOs for the first time, disbursing over RUB 73 billion to entrepreneurs, up 54% from 2023. More than 90% of commercial MFO microloans were granted remotely, and their main borrowers were small trading businesses, including marketplace suppliers. Government-owned MFOs primarily financed construction, transport, manufacturing and agriculture, often regional businesses and import substitution projects, with an average subsidised interest rate of 7% per annum versus 46% per annum in commercial MFOs. The State Duma is considering a draft law to raise the maximum size of a corporate microloan to RUB 15 million from RUB 5 million.
Central Bank of Russia 2025-04-28
Central Bank of Russia reports microfinance corporate lending rose nearly 25% in 2024 with commercial MFOs overtaking government-owned peers
The Central Bank of Russia reported that microfinance organisations (MFOs) increased business lending by nearly 25% in 2024, with commercial MFOs surpassing government-owned ones for the first time, issuing over RUB 73 billion in microloans. Commercial MFOs primarily served small trading businesses, while government-owned MFOs focused on sectors like construction and agriculture. The State Duma is reviewing a draft law to raise the microloan cap to RUB 15 million.