Payday Loan Are Equally Useful
Not so long ago, all microfinance organizations began to actively receive the status of an IFC, in order to meet the requirements of the BRR Bank and legally carry out payday loan issuance activities. But not all companies could do it. For example, to obtain the status of an IFC, it is necessary that the company’s capital should have at least 70 million rubles. There are fewer such companies on the market today than the ICC, but they account for more than half of the total payday loans in the country. The fact is that such organizations have the right to provide loans for large sums (more than 100 thousand rubles). Those Personal Loans that could not meet the requirements of the CCL Bank and did not want to give up such privileges continue to operate in the market, breaking the law.
Finaciers expectations are highly positive
Many financiers expected that there would be about 150 new IFCs in the previous year, but at the end of the year, there were only 60 in the official list. Such information was provided by Robot Seimer, having conducted an analysis of the payday loans market before that. At the same time, 6 IFCs from this list are foundations of entrepreneurship support located in different regions.
Unfortunately, most of those who could enjoy worthy advantages in the microfinance market simply could not “save up” for one of the main requirements of the CCL Bank. But with all this, some of them did not close their organizations and continue to provide loans to the public. Most often, these are loans online because, according to the law, they can only be issued by the IFC. Nearly 1,000 shadow companies today operate in the microfinance market. Be careful if you decide to take a payday loan. Always check the organization in the register of the BRR Bank.
According to many market participants, in order to positively influence the current situation, something more serious than the strict control of the CCL Bank is necessary. For example, criminalize those who grossly violate the law in the microfinance sector.
In turn, the BRR Bank does not plan to stop controlling payday loans. This year it is planned to introduce new amendments to the law, describing the requirements for interest rates and the work of Payday Loans with overdue debts. Also, the previously adopted amendments on limiting the number of loans to one person and the number of prolongations of the contract will come into force.
Payday Loan Services is on Demand
It is worth noting that Payday Loan services remain in demand and continue to grow in quantity. Over the past year, taking a payday loan has become more than 80% more. And the total amount of loans issued increased by more than 30%. Financial analysts report that this year the market will grow further.
Be careful when choosing a payday loan, especially if it is issued and provided remotely. You should always make sure that the company is in the register of verified Payday Loans on the BRR Bank website Verify the organization’s membership in one of the official SROs.