Russians seek salvation from poverty, and find
Despite the obvious improvement in life in the country compared with the 1990s, poverty of most of the population remains one of the main problems of modern Russia. Recently, Romir sociologists conducted a study, revealing that 20% of Russians consider their situation to be very difficult, and another 46% of the population - difficult. According to official data of the poor in Russia - about 25%. And these are very conditional figures, because it is not in the Russian tradition to “cry in a vest”. Many really poor people who hardly survive on their earnings or retirement will never recognize themselves as poor.
Since so many of our fellow citizens have low incomes, they cannot afford to buy even household goods machinery or furniture, not to mention apartments and cars. The lending market has flourished in modern Russia in a lush color, and it also has its own specifics. According to some reports, about 30 million Russians are not officially employed. This does not mean that all of them are poor, unemployed. Most of the “temporarily unemployed" work in the shade, but this also means certain problems. Most banks do not give loans to such people. They are forced to apply to microfinance organizations, where the percentage and amount of overpayment is much higher, but much more loyal to the requirements for the borrower.
For many Russians, MFIs have become a lifeline in the context of the economic crisis. After all, where else to borrow 10 thousand to extend to salary? Large banks prefer not to get involved with such consumer loans, and a lot of documents need to be provided. So people go to all kinds of “quick loans”. Interestingly, individual entrepreneurs are resorting more and more actively to the services of microfinance organizations, who consider the conditions for obtaining a loan in MFIs to be simpler and more affordable than in banks.
The development of the microcredit market requires the state to pay increased attention to issues of its legal and financial regulation. And the authorities have already begun to understand this, trying to protect citizens and businesses from the possible risks associated with microfinance. MFIs are becoming one of the most important components of the Russian financial system, and moreover, in a very necessary country, especially in modern conditions, the institution of maintaining social stability. If a person has the opportunity to go to an MFI and take out a loan of 10 thousand rubles when he does not have money for food, he would better take this opportunity than embark on the path of crime or poverty.
One can only predict more active development of microfinance organizations, since in recent years the Bank of Russia has tightened requirements for banks. Even many well-known banks lost their licenses, which contributed to lower citizens' confidence in the banking system. By the way, MFIs are also interesting for investors - deposits in these organizations bring a much greater profit compared to bank deposits (15-20% per annum against 5-7% per annum).
However, the state should not forget that very high interest on loans in MFIs can put citizens in a socially dangerous position, literally depriving them of livelihoods. Therefore, it is necessary not only to stimulate the activities of MFIs, but also, on the other hand, to take care of the interests of citizens, insuring them against credit bondage and increasing their financial literacy. The institution of bankruptcy of an individual, still raw, but so necessary, is a typical example.
Since so many of our fellow citizens have low incomes, they cannot afford to buy even household goods machinery or furniture, not to mention apartments and cars. The lending market has flourished in modern Russia in a lush color, and it also has its own specifics. According to some reports, about 30 million Russians are not officially employed. This does not mean that all of them are poor, unemployed. Most of the “temporarily unemployed" work in the shade, but this also means certain problems. Most banks do not give loans to such people. They are forced to apply to microfinance organizations, where the percentage and amount of overpayment is much higher, but much more loyal to the requirements for the borrower.
For many Russians, MFIs have become a lifeline in the context of the economic crisis. After all, where else to borrow 10 thousand to extend to salary? Large banks prefer not to get involved with such consumer loans, and a lot of documents need to be provided. So people go to all kinds of “quick loans”. Interestingly, individual entrepreneurs are resorting more and more actively to the services of microfinance organizations, who consider the conditions for obtaining a loan in MFIs to be simpler and more affordable than in banks.
The development of the microcredit market requires the state to pay increased attention to issues of its legal and financial regulation. And the authorities have already begun to understand this, trying to protect citizens and businesses from the possible risks associated with microfinance. MFIs are becoming one of the most important components of the Russian financial system, and moreover, in a very necessary country, especially in modern conditions, the institution of maintaining social stability. If a person has the opportunity to go to an MFI and take out a loan of 10 thousand rubles when he does not have money for food, he would better take this opportunity than embark on the path of crime or poverty.
One can only predict more active development of microfinance organizations, since in recent years the Bank of Russia has tightened requirements for banks. Even many well-known banks lost their licenses, which contributed to lower citizens' confidence in the banking system. By the way, MFIs are also interesting for investors - deposits in these organizations bring a much greater profit compared to bank deposits (15-20% per annum against 5-7% per annum).
However, the state should not forget that very high interest on loans in MFIs can put citizens in a socially dangerous position, literally depriving them of livelihoods. Therefore, it is necessary not only to stimulate the activities of MFIs, but also, on the other hand, to take care of the interests of citizens, insuring them against credit bondage and increasing their financial literacy. The institution of bankruptcy of an individual, still raw, but so necessary, is a typical example.
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