The National Bureau of Credit Histories examined the situation with payday loans in our country by region. More than 2000 data that various microfinance organizations provided to the NBCH were analyzed. After reviewing the information about 20 regions where Payday Loan clients are the most active, the NBCH specialists revealed a certain dependence of the percentage of bona fide borrowers on the total number of payday loans taken.
Statistics also differ depending on the specific product
Two main types were considered: a loan before a salary (an average amount of 10 thousand rubles, for a period from 7 days to a month) and larger loans, with an average amount of 20 thousand rubles, issued for a period from a month to a year, such sometimes called consumer credit. The second type of lending revealed an interesting trend – in those regions where borrowers’ activity increased compared to the previous year and loans are taken more often, people have the least debt. But for loans to payday delay at the same level in different regions.
In various regions, all processes related to issuing payday loans are somewhat different, therefore, the approach to this service is different, both among borrowers and MFOs. In order for organizations to continue to maintain the bar, they need to think in more detail and work out the information about the borrower with high quality when considering the application, as well as not forget about the client during the loan.
Positive results of a Payday Loan depend on the oganization
Analyzing the statistics, the NBCH experts concluded that the positive results of any Payday Loan mainly depend on the organization itself. How the company has developed working methods, how technically equipped the company is, and how all sorts of risks are thought out will affect the final result. For the microfinance organization to work effectively, it is simply necessary to have in its arsenal, at a minimum, a high-tech scoring system, a system for determining financial literacy and client activity and methods of identifying fraud.