Features of the MFO Activity

It is difficult to overestimate the importance of credit in the country's economy. Loans allow enterprises to quickly implement their own products (through commercial loans), raise additional funds for the modernization of fixed assets, etc. On the other hand, credit enables consumers to purchase more expensive long-term goods, "patch holes" in difficult financial situations, and so on. In a word, credit is an integral part of the market economy.

The last few years, widespread use of so-called microfinance organizations. Very often we can see on the streets of the city signs of organizations engaged in the implementation of short-term small loans. In order to determine the role and importance of MFIs in the economy, it is necessary to examine the main features of their work, regulatory and legal regulations, as well as the rates and conditions of lending.

In accordance with the norm of the Federal Law No. 151-FZ of July 2, 2010 "On Microfinance Activities and Microfinance Organizations," a microfinance organization means "a legal entity registered in the form of a fund, an autonomous non-profit organization, institutions (with the exception of a budget institution); A non - commercial partnership, a business association or a partnership that carries out microfinance activities and is included in the state register of microfinance organizations in the manner prescribed by law. "

To understand the definition of a microfinance organization, the concept of microfinance should be defined. From the corresponding law and practice of work of the microfinance organizations it is possible to draw conclusions:

• Microfinance activities are activities aimed at providing loans to individuals, individual entrepreneurs and organizations under relevant contracts;
• Loans provided by microfinance organizations should not exceed 1 million rubles;
• The term of loans, as a rule, does not exceed one year (52 weeks).

Microfinance organizations have become especially popular after the adoption of the law "On Microfinance Activities and Microfinance Organizations," which defines microfinance activities, establishes the order of their activities and the main features of monitoring their activities. So, this law provides for significant restrictions on the activities of microfinance organizations, determines their rights and responsibilities.

Obviously, microfinance (providing loans in the amount of not more than one million rubles) is the basis for the activities of microfinance organizations. It is through the issuance of loans that the MFI receives most of its profits.

However, the law severely restricts certain activities related to the provision of loans. So, for example, there are serious limitations on the formation of the company's capital. The law explicitly prohibits the attraction of funds to individuals who are not founders of the firm (with the exception of persons providing funds to the organization on the basis of a loan agreement in the amount of 1.5 million rubles or more under one loan agreement with one lender) [1]. That is, in fact, microfinance organizations, unlike banks, do not have the right to attract deposits.

Another no less serious restriction is the ban on professional work in the securities market. Thus, microfinance organizations can not use borrowed and own funds for professional investing in stocks, bonds, etc.

In other words, the activities of MFIs consist in the realization of loans within the framework of the founders and creditors of the capital raised from the funds. Naturally, microfinance organizations can not form such a serious amount of loan capital as banks.

The working principle of microfinance organizations is as follows: MFIs offer small amounts for a short period of time at very high interest rates.

In my opinion, microfinance is a modern legalized form of usury. So, the rates on loans can be from 9-10% per month to 4% per week (100-200% per annum). For comparison, a loan in Sberbank in the amount of 50,000 rubles. For one year without security will cost about 16.5% per year. In Uralsib Bank, a loan on similar terms will rise in about 23% [2]

It would seem that no rational economic entity will agree to such ruinous credit conditions. However, in order to obtain a loan from a bank, you must provide a package of documents and undergo a serious check. Thus, in addition to the passport, it is necessary to submit a certificate of income and other documents to some banks. The relevant services of the bank carefully study the authenticity of documents, credit history of the debtor, assess the risks of non-repayment of the loan. And not everyone who wants to get a loan passes this test (someone has insufficient official salary, someone has not submitted the necessary document, some have problems with credit history, etc.). Those who fail to check the bank are looking for firms that issue loans on more loyal terms. Such a client, as a rule, turns to the center of microfinance.

Microfinance organizations do not make serious demands on borrowers. So, a lot of organizations for issuing a loan require only a passport and take decisions on issuing a loan within a few hours. In addition, there are companies to obtain a microloan in which you do not even need to visit the office - applications for loans and issuance decisions are taken directly at home.

As we see, MFIs operate in a segment with a very high risk of non-return. In order to compensate for risks and ensure profitability, microfinance organizations set colossal interest rates. The logic in this case is simple: if at least one of the clients (three, four, etc., depending on the market of microloans and the segment), at least one fully repays the debt with interest, commissions, penalties and fines, the firm will provide income to its owners . Nevertheless, interest rates on microloans appear to be truly ruinous.

Moreover, the web can find a lot of negative feedback on the operating in the country MFI. In particular, clients complain about rudeness and rudeness of managers, uncivilized methods of collecting debts from borrowers, as well as using various non-transparent schemes for calculating interest, repaying debts, and so on.

It is clear that microfinance as such (the provision of small loans for a short period of time under a high percentage) exists in our country not the first day. However, only with the adoption of the law "On microfinance activities and microfinance organizations" microfinance organizations began to go out of the shadows, go to the legal mode of operation. Nevertheless, many methods of work (including criminal ones) remained in the arsenal of microfinance organizations. But this is most likely the problem of the growth and development of legal MFIs as a financial institution of the modern Russian economy.

As a commercial undertaking, microfinance activities have become widespread. The highest interest rates make microfinance very profitable, despite all the risks associated with it. Otherwise, we would not observe such an active growth in the number of microfinance organizations that can be observed with the naked eye.

Literature:

1. Federal Law of July 2, 2010 N 151-FZ "On microfinance activities and microfinance organizations.