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The Russians in the credit loop: no money, but you take

Россияне в кредитной петле: денег нет, но вы берите

The Russians are more willing to go into debt. 57% of compatriots admitted that they have one or more outstanding loans – twice more than eight years ago. Experts agree that to go to the Russians particularly nowhere – with declining real incomes to save the Russians have not. As a result, they gain a few loans, and when banks deny them a new loan agree to predatory loans to MFIs and lay property in pawnshops.

The number of Russians who had ever taken loans from banks has increased from 58% to 67% over the past three years, the study said of the all-Russian research center (VTSIOM). It is also noted that about 47% resorted to Bank loans is repeatedly. The survey was conducted in mid-November and it was attended by 1.8 thousand respondents.

“In a survey conducted in 2017, 57% of respondents (among 25-34-year – olds- 69%) reported that they personally or their family members have one or more outstanding loans – twice more than in 2009 (26%)”, – it is told in message VTSIOM.

In VTsIOM explain the growth of over-indebtedness for two reasons. The first is the slowdown of inflation, and as a consequence, lower rates on loans. The second is the deterioration of the financial situation of the Russians.

“People are forced to take out loans in the deteriorating financial position” – presented in the study of the words of the leading expert-consultant VTSIOM Oleg Chernozub.

This is not surprising because, real incomes are falling. This trend is present for the fourth year in a row. In January-October 2017 revenues decreased by 1.3% compared to the same period last year. Last year the decline amounted to 5.9%, according to Rosstat.

The Russians are building up debt faster than income. The average debt per capita in Russia by the end of the first half of this year amounted to 150 thousand rubles (+5%), and the income — 30,6 thousand rubles (+ only 0.9%), mentioned earlier in the review of MFIs “Home money”. According to statistics, in Moscow, the average debt per person is 170 thousand rubles, and income above 50 thousand rubles a month.

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The falling cash balance in the population — in Russia on average it is 7.5 thousand rubles per month.

As a result, people find it difficult to make savings. According to an earlier poll, 63% of Russians admitted that their families have no savings. To save only managed just over a third of respondents.

Potentially a problem with the refund may occur in more than a quarter of borrowers: 4% of respondents said they have concerns related to the payment of the loan, 22% of Russians see possible complications.

Thus, if a relatively wealthy Russians problems with the return of the money still should arise, the financial position of the poorest is a concern.

The average current debt load in October totaled 24.67%, according to data from the National Bureau of credit histories (NBCH). The ratio of monthly payments on all loans to monthly income or PTI has declined in the segments of borrowers with the highest income (more than 40 thousand rubles) – to 20.35% (1.51 percentage point), but also the middle income group (from 20 to 40 thousand rubles) – to 24.29% (0.74 PP).

However, borrowers with the lowest incomes (up to 20 thousand rubles) debt burden, by contrast, rose to 29,75% (+0,95 p. p.).

The major means of repayment for the Russians are the salary (75%) and pensions (24%). And, in the case of delayed wages or the necessity of any major expenses they have to turn to borrowing (35%). 13% prepared urgently to sell personal property. Another 4% are likely to turn to a pawnshop or MFIs.

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According to the statistics of the Central Bank on 1 October, the total volume of loans granted by banks to individuals amounted to 10.8 trillion rubles. Previously United credit Bureau (OKB) reported that in the first nine months of this year our fellow citizens have taken loans amounting to more than 3, 76 trillion roubles, which is more than 7 times more than was given to them for preservation.

At the same time according to EDB, in the first half of this year, about 8 million Russians was bankrupt (had the debt in the first half of this year, about 8 million Russians was bankrupt).

The rating Agency Fitch share “perekreditovanija” in Russia borrowers (take 3 credits or more) is 8%. Most often it ends up overdue and damaged credit history.

And the only way out for such borrowers become microfinance institutions with loans at a thousand percent. Among those who out of despair comes into microfinance organizations, about 9% have four loans and 15% — three credits. The loans of the MFI come back five times worse than the Bank.

Citizens believe that the money to repay the debt is, and at banks and MFIs, we continue to note the high delinquency and default risks – there is a lack of financial literacy and therefore inability to adequately assess their financial resources, noted in MFIs “Migkredit”.

However, judging by the statistics, MFIs are more willing to make loans. For the first half of 2017, the volume of microfinance market reached $ 215 billion. Thus, MFIs, pawnshops and credit consumer cooperatives increased their volume of lending in the first six months of this year by 8%.

Market MFIs demonstrates a much higher growth rate than Bank lending, and by the end of 2017, this trend continues, predicted in the “Migkredit”.

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