• 23/04/2024 22:04

The share of microloan borrowers in relation to wages after the great war increased to 67% – study

The services of microfinance organizations (MFOs) are used by about 13% of the adult population of Ukraine, while the share of borrowers accepting a loan to meet daily needs while waiting for the next salary increased from 42% by 2022 to 67%. This is evidenced by the results of a study of the impact of the war on microcredit in Ukraine commissioned by the Association of Ukrainian Banks, Interfax-Ukraine reports.

The share of microloan borrowers in relation to wages after the great war grew to 67% — research

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< p>According to the study, the second most popular purpose of the loan is to pay for treatment or purchase of medicines – 31% (+16 percentage points (pp) to the indicators until 2022). Third place went to costs for home and car repairs – 19% (+7 p.p.).

Following them, the most popular reasons for obtaining microloans were payments for utility services – 17% (+8 p.p.), purchases of clothes and shoes – 15% (+7 p.p.).

According to data research, the needs for most other items increased or remained at the same level, while the frequency of obtaining a microloan for the purpose of vacation fell immediately by half – from 10% by 2022 to 5%.

It was noted that after Russia’s full-scale invasion of Ukraine in February 2022, 13% of respondents took out a microloan for the first time, 46% began to take them more often, while 12%, on the contrary, less often.

A tiny number of respondents (3 %) responded that they had completely refused to take out microloans, and 26% reported that their behavior regarding the frequency of taking out microloans after the full-scale invasion of Russia had not changed.

How often do Ukrainians take out microloans

According to the study, 34% of respondents take out microloans several times a month, and the same proportion of respondents prefer to take out one or two microloans monthly. 13% of respondents take out microloans every three to five months, 7% take out microloans every six months, and 5% of respondents take out one microloan per year or less, respectively.

“60% (of respondents, ed.) have one to three active microloans and 70% are used simultaneously by one to three microfinance organizations. The main reason for using multiple loans is a lack of money (61%), meaning the amount of one loan is most likely small to cover all necessary expenses,” says the research presentation.

Among other reasons for using the services of several lenders at the same time, respondents also identified refinancing – 18% and benefits, convenience of diversification – 15%.

The key factors when choosing an MFO, respondents named the size of the interest rate on the loan per day of use and the full rate for the entire loan term, as well as the amount available for the loan.

Clients choose MFOs instead of banks

It is noted that the majority of clients (81%) prefer to use the services of microfinance organizations rather than banks, given the efficiency, simplicity and absence of lengthy checks for obtaining a loan.

“The most important reasons for choosing microfinance organizations for obtaining a loan compared to users call banks “the speed of processing a loan,” “the ability to apply for a loan online,” and “instant transfer of money,” says the study.

Income of MFO clients

According to the study, monthly income MFO clients range from UAH 15 thousand to UAH 30 thousand for 39% of respondents, from UAH 7 thousand to UAH 15 thousand for 32% and less than UAH 7 thousand for 8% of respondents. At the same time, 12% of MFO clients surveyed have an income of 30 thousand UAH. up to 45 thousand UAH. per month, and 6% – more than 45 thousand UAH.


It is noted that the research was conducted from December 5 to December 21, 2023. The surveys were conducted in the format of online interviews, in which 1079 MFO clients and 1005 respondents, representative of the urban population of Ukraine aged 18 to 55 years, took part.


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