Approximately 207 thousand residents of Sverdlovsk are restricted from traveling abroad. Identifying these individuals.
In a shifting financial landscape, Russia is witnessing a surge in microloan usage, with these short-term and medium-term loans becoming increasingly popular, particularly among citizens who are finding it hard to secure traditional bank loans. This trend is raising concerns over mounting household debt burdens, as these loans often come with higher costs and risks of over-indebtedness.
According to recent reports, rejection rates for bank loans in Russia are on the rise, with only about 21.4% of applications being approved as of July 2025. This has led many borrowers to turn to microfinance organisations, with approximately 32% seeking microloans in 2024. The number is even higher for those who have been rejected by banks, with 30% opting for microloans as an alternative.
The growth of microloans is intensifying the financial strain on many Russians. By November of the previous year, 70% of new loans taken by Russians were for medium-term (IL) and "until payday" (PDL) microloans. The largest group among those unable to leave Russia consists of people aged 29-39, with around 110,000 individuals restricted due to credit and alimony debts, and approximately 67,000 of them residing in Sverdlovsk. As of August last year, more than 280,000 Sverdlovsk residents had already been restricted from leaving due to debt.
Departure from Russia is restricted if there is a debt of more than 30,000 rubles, except for debtors of alimony or compensation for moral damage, for whom the threshold is 10,000 rubles. The restrictions are imposed by the Regional FSSP Department, but specific laws or regulations governing these restrictions and microloans in Russia remain unspecified.
The high interest rates on microloans are believed to increase the overall debt burden on clients. In the fourth quarter of 2024, the interest rates on unsecured loans in MFIs ranged from 39.3% to 284.9% per annum, according to the Central Bank of Russia.
While the current status of microloans in Russia shows a tightening credit environment, experts suggest that cuts in the key interest rate could reduce monthly loan payments, easing debt burdens and making loans more accessible. However, detailed Russian microloan volume data or explicit statistics on the precise size or growth trend of medium-term and payday loans are not provided in these results.
It is worth noting that in March of this year, microloans in Russia surpassed credit card offers for the first time. Yet, the impact of these microloans on the economy or society of Sverdlovsk or Russia as a whole remains unclear.
For those affected by these restrictions, the "Progress of Enforcement Proceedings" service on the Gosuslugi website provides information on the status of their debts and potential restrictions. It is crucial for individuals to stay informed and seek advice from financial advisors to navigate this complex financial landscape.
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