The growth of the volume and number of loan disbursements to the population has been recorded for several years on the payday loan market. At the same time, almost every quarter the growth dynamics has also been growing for several years. But this year, already during the coming summer, the first decline in growth dynamics will probably be recorded.
Payday Loans clients need to be take care
Some financiers and large Payday Loans cite the need for more careful scoring for their clients as the reason for this situation. Thus, already over the summer period of this year, growth in the microfinance market will be slightly more than 10%. This, of course, is still a growth, but compared to the previous year it will be 4 times less.
Microfinance companies believe that the reason for the decline in demand for payday loans may be the constant tightening of regulation by the OPP Bank. The fact is that fewer and fewer companies can cope with the new rules, and the remaining companies in the market are not able to cover the entire market. For example: from the beginning of the next month, the next requirement of the regulator begins to apply, which is associated with a decrease in the maximum allowable interest rate on payday loans. But many Payday Loans simply cannot meet this requirement. Consequently, organizations will begin to more strictly select borrowers for themselves, thereby reducing their portfolio.
According to the forecasts of some analysts, it is believed that many Payday Loan clients, even permanent ones, will resort to the help of illegal lenders to take a loan and solve their temporary financial difficulties.
Several Payday Loans in the SRO have already sent an official letter to the State Duma and the Council of the Federation with a request to reconsider the requirements of the regulator. Applicants suggest a few soften requirements, as well as introduce them step by step in order to have more time to prepare.