According to the All-Russian Public Opinion Research Center, the typical alternative lending borrower in 2024 is a man or woman aged 35-44 with a vocational or higher education and a moderate income. Data shows that 56% of borrowers are employed, with 57% holding specialist positions, and nearly half are married. Together with experts from Vse Zaimy Online, we explore how this borrower profile may evolve following the reduction in maximum loan overpayment limits.
Consumers opt for alternative lending primarily due to speed and convenience. The key decision factors include: Fast loan processing (37%), Minimal documentation requirements (32%), Higher approval rates compared to traditional banks, Seamless online application process (27%).
"Reputation and fast application processing are the two key factors influencing a borrower’s choice of an alternative lending provider," explains Denis Piletskiy, Chief Product Officer at Cyberbird Fintech Group (which operates 'Privet, Sosed!' and Finters). "Nearly half of our customers compare offers from different providers before making a decision. That’s why we prioritize service quality, listen to our clients, and set trends in the financial market."
Regulatory Impact on the Market
In 2023, the Bank of Russia introduced macroprudential lending limits, restricting loans to borrowers with high debt-to-income (DTI) ratios. At the same time, the maximum daily interest rate on loans was reduced from 1% to 0.8%.
According to Vita Zhiznevskikh, CEO of Vse Zaimy Online, loans issued to borrowers with a DTI of 50–80% and those exceeding 80% remain within the regulatory caps of 15% and 10%, respectively. Alternative lending companies are increasingly prioritizing financially responsible borrowers who engage in long-term financial planning.
The quality of loan portfolios is steadily improving. According to data from the Self-Regulatory Organization 'Mir' for Microfinance, the share of delinquent loans declined by 2% in 2023 alone.
The Bank of Russia plans to further tighten regulations, reducing the maximum loan overpayment cap from 130% to 100% of the principal. Previously, this cap was lowered from 150% to 130% in July 2023. This means that for a ₽10,000 loan, the maximum allowable overpayment today is ₽13,000, including all fees and penalties. In the future, this will be further reduced to ₽11,000.
Additional regulatory measures under consideration include: A three-day "cooling-off" period before borrowers can take out a new loan after repaying a previous one, and restrictions on multiple concurrent loans for high-cost lending products.
The Future of Alternative Lending Borrowers
Adjustments to DTI calculations, reduced overpayment caps, and broader regulatory changes have already reshaped the lending landscape. The borrower profile from just two years ago no longer aligns with today’s reality.
The future alternative lending borrower will be a financially stable individual with a strong credit rating, prioritizing speed and convenience in loan decisions. They will avoid prolonged delinquencies, plan their budgets effectively, and manage debt responsibly.
Financial literacy among Russian consumers is steadily improving. More borrowers now understand the differences between traditional bank loans and short-term microloans and are aware of the consequences of missed payments—aligning with the objectives of regulatory policy.
Meanwhile, demand for loans in Russia continues to rise. According to Scoring.ru, alternative lending companies approved ₽81.4 billion in loans in May 2024 alone—the highest issuance level in the past 1.5 years.
The biggest challenge for regulators is ensuring that new policies do not over-restrict the lending market. Excessively tight regulations could lead to a surge in loan application rejections, pushing borrowers toward unregulated lenders. The potential growth of the shadow lending market is a serious concern, requiring careful industry oversight to maintain a balanced and responsible credit environment.
Source: vsezaimyonline.ru