Bank of Russia has noted reduction in interest rates on consumer loans

Financial intermediaries, consumer credit and loans to the population of the Russian Federation, lowered interest rates in the II quarter of this year. This is according to the market average, and limits effective interest rate (CPM), published on the website of the Bank of Russia.

Credit institutions, which account for the overwhelming share of loans, substantially reduced interest rates on consumer credit. As a result, the average market value of the CPM to credit institutions decreased in almost all categories of loans both in comparison with I quarter 2016, and compared with the II quarter of 2015.

As a result, the market average CPM of credit institutions in the II quarter of 2016 were in the range of 16.2-33% depending on the type of loan, while in the I quarter of 2016 - in the range of 17-34.6%, in II quarter of 2015. - 17.2-42.3 % depending on the type of loan.

Almost all categories dropped the cost of consumer loans provided by participants in the microfinance market of individuals. The tendency to reduce the CPM for certain categories of loans to microfinance institutions (MFIs) is observed since the second half of 2015.

The most significant decrease in the average CPM value - by 24 percentage points - noted in the II quarter of this year on consumer loans without collateral in the amount of 30 thousand rubles.. up to 100 thousand. rub. for a period of 2 to 6 months, one of the most popular among the population of products that can testify, including improving the payment discipline among borrowers and, as a consequence, reducing the level of defaults and delinquencies that MFIs have to be taken into account when setting rates for the proposed loan, CB emphasizes.

"Reducing the limit value value of consumer loans creates the conditions for increasing the availability of these products to the population average market values and calculated from these CPM limits are playing an increasing information and disciplining role in the microfinance market.", - Said Head of Market microfinance and methodology affordability Bank Russian Ilya Kochetkov, commenting on the data published by the regulator.