Ukrainians Are Taking Out Even More Microloans

Over the first half of 2021, Ukrainian microloan providers have granted 7,152,636 quick loans worth a total of UAH 31.6 billion. It is 43% more money than in H1 2020 when the total amount of loans was 22 billion.

The number of loans granted in Ukraine is growing year by year: 982,500 were granted each month in 2019, 1 million in 2020, and 1.2 million in 2021.

The total amount of overdue debts on microloans continues to increase as well, as it has added 6.5% since the start of the year. Ukrainians currently owe UAH 14.9 billion in overdue loans to microloan providers.

Since the end of 2020, the average loan amount has grown by 9%—from UAH 4,059 to UAH 4,417.

To recap, changes to the lending law that influence microloan providers have taken effect at the start of the year. Specifically, the sum of fines and penalties cannot exceed the double amount of the loan if it is more than 1 minimum salary (UAH 6,000 as of January 1, 2021). However, this rule does not apply to lesser loans. They, as previously, are subject to the general rule, whereby the sum of fines and penalties cannot exceed 50% of the loan. Market players opined in winter that these changes would not have a substantial impact on the number of loans granted—and it appears they were right.