A payday loan for the population to become more popular. According to the CBB Bank, 2015 was quite successful for microfinance organizations. A certain increase in the issuance of payday loans was recorded, mainly due to the activity of individuals. The number of loans to legal entities from Payday Loans, on the contrary, decreased. But this did not prevent an increase in the total amount of payday loans issued by 6.5% compared with 2014. According to experts of the financial market, in 2016 we should expect about the same growth and still due to the increased interest in Payday Loans of ordinary citizens.
The reasons for the growth of issued payday loans
Persons consider two important aspects. This is the need of the population for microcredits, that is, small loans for a short time – “before pay”. And a clear refusal of individuals to cooperate with banks and other credit organizations other than Payday Loans, due to the tightening of credit conditions.
Without state support, most likely, the number of loans issued to small and medium businesses will gradually decrease further. And Work with individuals will also increase.
The same growth as in 2015 takes place this year. In addition to the same reasons that influenced last year, the fact that at the end of March a new amendment to the law was introduced, complicating the work and existence of the Payday Loan, should also contribute to this. In short, according to this amendment, microfinance organizations should be divided into two groups: microcredit and microfinance. The first can not attract money from individuals, while how, the second, on the contrary can. This and similar amendments are introduced by the regulator intentionally, for tighter control over the Payday Loan. Accordingly, such actions of the CBB Bank, simply, weed out illegal and gray companies, and the rest will receive greater confidence of citizens, which contributes to the growth of loans issued.