Of the total outstanding loan of the non-banking financial institutions:

- 84.2 percent are personal loans,

- 15.8 percent are loans of legal entities.

In terms of their classification:

- 86.5 percent are performing loans,

- 4.8 percent are overdue loans,

- 8.7 percent are of non-performing loans respectively.

The total number of customers of non-banking financial institutions has reached 2.8 million. As of the first half of this year, a total of 542 non-banking financial institutions are operating in Mongolia. Moreover, the total assets of non-banking financial institutions increased by 21.5 percent compared to the same period of the previous year and is estimated to be at MNT 1.9 trillion.

The increase in the supply of loans by the non-banking financial institutions is thanks to the introduction of technology-based financial products and services into the market.

As a result, access to credit services has improved, and the number of loan holders in the sector increased 1.2 times compared to the same period of the previous year, reaching 445.9 thousand, and the average loan per borrower is MNT 20.9 million.

At the press briefing held by the FRC on August 17, head of a working team at the FRC T.Jambaajamts said “In recent years, technology-based lending services have been introduced with success. As of the first half of 2020, about 80 percent of 445 thousand borrowers, who received 1.3 trillion of loans in total borrowed were through loan lending mobile applications. In other words, customers are provided with conditions for collateral-free and instant loan services and favorable terms of loan repayment”.

90.6 percent of 2.8 million customers of NBFIs are estimated to use mobile phone and internet-based financial products and services, according to the FRC.

B.Dolgormaa