Loans at 730% per annum: how Russians go crazy
Why do people borrow? It is clear that not from a good life. Most of the Russian population lives from paycheck to paycheck, and that is not enough. Bright television advertising practically makes people buy something that they probably do not need, of course, on credit. It is difficult to find today a Russian who would not have at least one loan obligation to the bank. Due to the heavy financial burden, the loans of many citizens are overdue and unfortunate debtors who have not calculated their capabilities are forced to deal with numerous collectors.
But to what degree of despair do you need to get to get a loan at 730% ?!
This figure was not taken from the ceiling, the author of the lines personally saw an ad offering to borrow money at 2% per day. That is 730% per year! It should be noted that the percentage was indicated in the text of the advertisement, but in small print and at the bottom, where it was difficult to read.
It is clear that such crazy interest is impossible to pay in principle. Such debts can be recovered only by bandit methods with intimidation and putting an iron on the body of the debtor. It is believed that microfinance organizations that have grown like mushrooms after summer rain are the reincarnation of criminal structures that were forgotten from the nineties. If not all, then some are likely. Not so long ago thundered all over the country news about how a small child was injured after a moronic collector of a microfinance organization threw a Molotov cocktail into the window of a debtor’s apartment. If these are not bandits, then who are the bandits?
Such chaos in the microfinance market could not continue indefinitely. Finally, the Central Bank deigned to intervene in the situation with excessive debt, which weighs on Russians. The loan ceiling is supposed to be gradually reduced from threefold to one and a half times the amount of debt by 2019. The regulator also proposes gradually reducing the loan rate to 1,5% per day, and by 2019 - to 1% per day.
According to the decision of the Central Bank, such a decision will lead, in a civilized framework, first of all, to a pay-day loans format. Now the payment of the debt in 10000 p. It will be fixed and will be with all interest, fines and penalties only 3000 p. Such a loan can be borrowed for a period of only 15 days and debts on it cannot be increased or extended.
Obviously, such regulatory initiatives were met without much enthusiasm by market representatives. It is assumed that the so-called “Gray” and inefficient companies. Players remaining in the market will most likely have to switch to medium-term lending. Tighter credit conditions may lead to the fact that Russians will be forced to borrow from “black creditors”, representatives of the microfinance sector are scared.
Whether the initiative of the Central Bank will lead to the improvement of the microfinance market, time will tell. But I would like to hope that loan offers at 730% will remain in the past and eventually become one of the “urban legends”.
But to what degree of despair do you need to get to get a loan at 730% ?!
This figure was not taken from the ceiling, the author of the lines personally saw an ad offering to borrow money at 2% per day. That is 730% per year! It should be noted that the percentage was indicated in the text of the advertisement, but in small print and at the bottom, where it was difficult to read.
It is clear that such crazy interest is impossible to pay in principle. Such debts can be recovered only by bandit methods with intimidation and putting an iron on the body of the debtor. It is believed that microfinance organizations that have grown like mushrooms after summer rain are the reincarnation of criminal structures that were forgotten from the nineties. If not all, then some are likely. Not so long ago thundered all over the country news about how a small child was injured after a moronic collector of a microfinance organization threw a Molotov cocktail into the window of a debtor’s apartment. If these are not bandits, then who are the bandits?
Such chaos in the microfinance market could not continue indefinitely. Finally, the Central Bank deigned to intervene in the situation with excessive debt, which weighs on Russians. The loan ceiling is supposed to be gradually reduced from threefold to one and a half times the amount of debt by 2019. The regulator also proposes gradually reducing the loan rate to 1,5% per day, and by 2019 - to 1% per day.
According to the decision of the Central Bank, such a decision will lead, in a civilized framework, first of all, to a pay-day loans format. Now the payment of the debt in 10000 p. It will be fixed and will be with all interest, fines and penalties only 3000 p. Such a loan can be borrowed for a period of only 15 days and debts on it cannot be increased or extended.
Obviously, such regulatory initiatives were met without much enthusiasm by market representatives. It is assumed that the so-called “Gray” and inefficient companies. Players remaining in the market will most likely have to switch to medium-term lending. Tighter credit conditions may lead to the fact that Russians will be forced to borrow from “black creditors”, representatives of the microfinance sector are scared.
Whether the initiative of the Central Bank will lead to the improvement of the microfinance market, time will tell. But I would like to hope that loan offers at 730% will remain in the past and eventually become one of the “urban legends”.
Information