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Of course, in the West, the general level of financial education among the population is higher than in Russia, which can be explained for several reasons. For example, in Europe and the United States, the population, unlike our country, is a fiscal operator. People are used to counting their money and informing the state on their own. In Russia, part of the tax deductions falls on the shoulders of employers, who deduct them from the employee’s salary before they are credited to their bank card.

On the one hand, this option, of course, is convenient for the employee, but at the same time, many people do not realize their role in the formation of the country’s budget, as a result of which they are not monitoring so closely the effectiveness of the expenditure of these funds by the state.

On the other hand, some Russians are quite frivolous about their own personal or family budgets. Due to the low level of financial culture, our fellow citizens often misuse loans, making them long-term and extremely unprofitable loans. Therefore, it is not surprising that a convenient financial instrument in Russia has gained negative fame. However, the situation is gradually improving thanks to the actions of the regulator in the person of the Central Bank, and among the borrowers there are more and more people using MFI products for the intended purposes.
Source: https://sosanhkhoanvay.com/vay-tin-chap/
Now the main obstacles to further market development are associated with the actions of the legislative bodies. Then, more recently, a group of deputies initiative advocated the liquidation of MFIs, deciding that such a measure would reduce the crime rate in the country. In his opinion, the main problem of MFIs is that the presence of large debts encourages citizens to commit crimes to pay them.