If microfinance organizations (MFIs) are allowed to issue loans secured by real estate, it will lead to dangerous consequences. In particular, many Russians will “sit on a credit hook” of small entrepreneurs. About this in an interview with the radio station “Says Moscow” warned economist, political scientist Mikhail Khazin.
“I believe that it is extremely dangerous, it is categorically impossible to do this. Microfinance organizations are the usurists who are engaged in usury and accordingly require marginal interest,” he noted.
According to Khazin, MFIs are dangerous, since they are engaged in the illiteracy of Russians and are made on customers. Such organizations should be prohibited in Russia, concluded an economist.
previously became known that MFIs made a proposal to allow them to issue loans secured by real estate. Such a restriction was introduced in 2019 in order to prevent real estate fraud. MFI since then could not conclude consumer loan agreements with individuals secured by residential premises.