The expert notes that loans secured by a car have certain advantages. Registration is quick, there is no need for guarantors, microfinance organizations do not conduct a thorough credit history check, and the borrower continues to use his vehicle. Moreover, against the background of a significant increase in interest rates on consumer loans, MFI offers do not look so burdensome anymore.
According to Petrova, most often people who live from paycheck to paycheck resort to car loans. Unforeseen expenses, such as the breakdown of household appliances or the need for urgent medical treatment, make them look for money. However, the main risk is the high interest rate on microloans, which can lead to an inability to repay the debt. The amount of a loan against a car usually does not exceed 50% of its market value. In case of late payments, the car is seized, and the borrower is left with a debt, which often becomes the cause of bankruptcy.
Earlier, the Russian Central Bank reported a five-fold increase in the volume of microloans secured by a car in the last six months compared to the third quarter of 2024. The share of such loans in the total volume of loans issued by MFIs between January and March 2025 reached 15%. The regulator attributes this growth to the tightening of banks' requirements to borrowers, which makes people turn to loans secured by a car, despite high interest rates reaching 80% or more.
It is worth remembering that when taking out a loan against the pledge of the vehicle's title in MFIs, you can get 50-60% of the value of the car, and when the car itself is pledged, this amount can reach 90%. Before signing a contract with an MFI, it is necessary to carefully study all its terms and conditions. Often borrowers are offered a zero interest rate in the first month, but then it increases sharply. It is important to clarify in advance what additional services may require payment, such as car valuation or storage.
There are cases when the lender offers to sign a sale and lease agreement. If you do not pay attention to this and sign such a document, the borrower risks losing ownership of his car.