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Microfinance: Ready, Set, Go!

26.07.2016 15:18 / The Bank of Russia

Microfinance companies can now apply to the Bank of Russia for licenses, according to the newly enacted Regulation 3984. To protect investor rights, the capital minimum is set at RUB 70M, so that only major and stable companies may apply.

Microfinance company capital is calculated according to Regulation 4037 (enacted 25 July 2016).

Both regulations are tied to amendments to the Microfinance Act, establishing two types of microfinance enterprises - microfinance (MFC) and microcredit (MCC) - to allow proportionate risk oriented regulation.

MFCs will continue to operate under a maximum loan limit of RUB 1M, with the same funding procedures.

All other companies are microcredit with no right to raise investment from non-founders, with the loan limit twice lower than before, RUB 500k. These microfinance organizations must add 'microcredit comapny' to their name by 29 March 2017.

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