About 13% of the adult population of Ukraine use the services of microfinance organizations (MFO), while the share of borrowers who take out a loan to meet daily needs while waiting for the next salary increased from 42% before 2022 to 67%, according to the results of a sociological survey on the impact of war on microcredit in Ukraine commissioned by the Association of Ukrainian Banks (AUB).

According to them, the second most popular purpose of the loan is to pay for treatment or purchase of medicines - 31% (more 16 percentage points (p.p.) from the indicators until 2022). Third place was taken by expenses for home and car repairs – 19% (up 7 p.p.).

Following them, the most popular reasons for obtaining microloans were payments for utility services – 17% (more 8 p.p.), purchases of clothes and shoes – 15% (more 7 p.p.).

According to the study, needs for most other items increased or remained at the same level, while the frequency of obtaining a microloan for the purpose of vacation halved - from 10% until 2022 to 5%.

It is indicated that after Russia’s invasion of Ukraine in February 2022, 13% of respondents took out a microloan for the first time, 46% began to take them more often, while 12%, on the contrary, less often.

A tiny number of respondents (3%) responded that they had completely refused to take out microloans, and 26% reported that their behavior regarding the frequency of taking out microloans after the Russian full-scale invasion had not changed.

According to the study, 34% of respondents take microloans several times a month, the same proportion of respondents prefer to take one or two microloans monthly. Some 13% of respondents take microloans once every three to five months, 7% - once every six months, and 5% of respondents - once per year or less, respectively.

"Some 60% (of respondents) have one to three active microloans and 70% appeal to one to three microfinance organizations at the same time. The main reason for using several loans is lack of money (61%), that is, the amount of one loan is most likely too small to cover all necessary expenses,” says the study.

Among other reasons for using the services of several lenders at the same time, respondents also identified refinancing - 18%, benefits, and convenience of diversification - 15%.

It is indicated that 39% of respondents apply for microloan services regardless of the time of day, 32% prefer to apply for a microloan during the day, 20% in the evening, 7% in the morning and only 2% at night.

The survey results demonstrate that the needs of clients who take loans from 22:00 to 7:00 am are the same as at other times of the day: expenses for daily needs, treatment and medications, training, utility bills, etc. while obtaining microloans for playing in online casinos takes last place in the ranking.

The key factors when choosing an MFO were identified by respondents as the interest rate on the loan per day of use and the full rate for the entire loan term, as well as the amount available for the loan.

Speaking about the risks that may arise when applying for a microloan, 18% of respondents noted the impossibility of returning funds within the period stipulated by the agreement, 12% of respondents pointed to high interest rates and their change, while 29% said there were no risks.