Almost 50 Billion in Three Quarters: Ukrainians Set a New Record in Microcredits

The loans issued during the first nine months of 2021 exceeded the entire last year’s figure by UAH 261 million.

6 December 2021

Ukrainian microloan providers issued quick loans worth UAH 49 billion in the first three quarters of 2021. That is 261 million more than in the entire 2020 when the total amount was UAH 48.7 billion.

The number of loans issued in Ukraine grows year by year: an average of 982,500 loans per month in 2019, 1 million loans in 2020, and as much as 1.2 million loans in 2021. This means that the average monthly number of loan agreements increased by 20% compared to the previous year.

The average loan amount increased by 11% from the end of last year—from UAH 4,059 to UAH 4,515.

Ukrainians most often take out loans online, with 85% of microloan agreements made via the Internet.

The Ukrainian population’s debt to microloan providers is growing rapidly—the total amount of debt increased by 5% in the nine months of 2021. At the moment, Ukrainians owe UAH 15.6 billion in loans to microloan providers.

Dynamics of total microloan amount as of 10/1/21
Debt, billion13.914.815.6

To recap, changes to the lending law that influence microloan providers have taken effect at the start of 2021. Specifically, the sum of fines and penalties cannot exceed the double amount of the loan if it is more than one 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.

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