Why Microloans are so Attractive to Young People
OREANDA-NEWS. People under the age of 30 often borrow money from dubious offices. Pavel Sigal, first vice president of “Opora Rossii” commented this phenomenon. He noted that young people are rather active today, and they need money for their needs, although not very large amounts of it. Their incomes have decreased considerably, while banks often refuse in giving loans due to the pandemic crisis.
So young people borrow money from micro-financing firms without calculating their income and without consulting to the elder relatives. Sometimes they hope for their parents’ help in giving the loan back. But young people’s parents just often don’t know about such decision.
This shows young people's incompetence, in Pavel Sigal’s view. But he thinks that it would be wrong to restrict activities of such micro-financing firms, because there is certain need for them now. He notes as a result of possible restrictions such companies would get “grey”, their number would increase and it would be impossible to control them and their activities.
According to Pavel Sigal, sooner or later bank lending market will recover again, and people will prefer to borrow money from serious finance organisations rather than from dubious ones.
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