Restrictions on the MFO market will increase competition for clients

Restrictions on the market of microfinance organizations (MFOs), which limit the number of loans for Russians, will increase competition for clients. Such consequences of the rule change were described to Lente.ru by Alfa-Money Marketing Director Andrey Chesnokov.

From October 1, 2026, microfinance organizations are prohibited from issuing new loans to citizens who already have two outstanding loans with a full loan cost above 200 percent per annum. But the market has prepared for such changes, and some of the contracts have shifted to longer loans with a lower cost.

“Product margins will decrease somewhat. In our opinion, MFOs will compensate for this through additional voluntary services for clients. The change will increase competition for the client. This will lead to an increase in the cost of acquisition. At the same time, the importance of retaining existing clients will increase,” Chesnokov noted.

For end customers, the availability of several short, expensive loans at the same time will change. From a practical point of view, a refusal to issue a new loan may be a signal for the client to check his current debt load and credit history. In your credit history, you can check which agreements are considered valid, what amounts remain to be repaid, and whether there are any technical errors, Chesnokov added.