Russia: Service Sector Workers Apply For 50% of Micro-Loans

UrBC, Moscow, August 23, 2018. It appears people working in the trade and service sectors are the most active applicants for micro-loans this year. They received, respectively, 25.7% and 24.9% of all micro-loans issued in the first half of 2018, the micro financing organization SmartCredit reports.

According to SmartCredit, the largest share (18.2%) of micro-borrowers in 2016 was made up of production sector workers. In 2017, those employed in the trade and service sectors outstripped the production sector employees and continue to do so this year. Thus 16.6% of micro-loans got issued to production sector workers this year, 11.9% to workers in the building industry, and 8.4% to civil servants.

All borrower categories mostly apply for loans to buy household appliances, consumer electronics, and furniture. The share of such consumer micro-loans rose from 8.5% in 2016 to 15% in 2017. Loans meant to cover one’s medical bills are the second most widespread micro-loan type; their share increased by nearly 3% between 2016 and 2017.

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