The introduction of a rate limit on microloans at the level of 1% per day, provided for by Law 3498-IX, will increase the caution of lenders in their approach to borrowers and may lead to the departure of small players from the market. This opinion was expressed by the heads of large participants in the microcredit market. Interfax-Ukraine writes about this.
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“Companies will forced to reduce the risk of losses. So they'll probably tighten up their credit scoring systems first. Consequently, clients with a bad credit history will suffer,” said MyCredit CEO Vladislav Bilan.
He also added that many small companies will be left behind. “They will not be able to adjust their processes, adapt their business models to the new conditions. Only great players remain.”
In turn, CreditPlus CEO Vladimir Dovgal said that consumer loans will really be cheaper for the population. “Secondly, companies will choose their clients more carefully. Therefore, those clients who have a loan approved by a financial company will be able to use the service with lower interest rates than now.”
According to Moneyveo CEO Sergei Sinchenko, Law No. 9422 can encourage borrowers to take out more loans, due to with which lending volumes could potentially increase.