Online Lending in Ukraine Has Surpassed Pre-War Levels and Faces New Risks

The online lending market in Ukraine recovered faster after the sharp decline in 2022 than could have been expected given wartime risks, falling household incomes and general uncertainty. By the end of 2025, the sector had surpassed pre-war levels in terms of new lending, expanded its loan portfolio and significantly increased profits. At the same time, the market became considerably smaller in the number of participants and more concentrated: the number of financial companies more than halved, while the main lending volumes became increasingly concentrated among the largest players. The full-scale invasion became a period of severe contraction for non-bank lending. In 2022, loan issuance declined, some companies ceased operations, and the rest were forced to revise risk assessment, reduce credit limits and change their approaches to working with clients. However, over the following years, the sector began to recover. By the end of 2025, the volume of non-bank loans issued to individuals exceeded the 2022 level by more than 2.3 times. The microloan portfolio of individuals, meaning the amount owed under active credit agreements at the end of the period, reached UAH 29 billion in 2025. For comparison, it amounted to UAH 12.6 billion in 2021. Thus, over four years, the volume of active household loans more than doubled and reached a historic high.

The volume of new loans issued during 2025 amounted to UAH 58 billion. This was 18% more than in 2021. Quarterly loan issuance during 2025 ranged from UAH 13 billion to UAH 17 billion, several times higher than the figures recorded in 2022. The sector’s financial results also improved significantly. The net profit of financial companies exceeded UAH 13 billion in 2025. It amounted to UAH 12.5 billion in 2024, UAH 8.5 billion in 2023 and only UAH 1.8 billion in 2022. This dynamic indicates that the largest market participants were able to adapt their business models to more difficult conditions and return to high profitability.

The key change in recent years has been a sharp reduction in the number of participants. Since the end of 2021, the number of financial companies in the state register has fallen from 922 to 394 as of the beginning of the second quarter of 2026. A similar trend was observed in other segments of the non-bank sector, including insurance companies, credit unions and pawnshops. The reduction in the number of companies did not lead to a decline in lending volumes. On the contrary, business became concentrated among fewer institutions. This indicates market consolidation, in which large companies increase their share while smaller participants either leave the sector or lose influence. In February 2026, the National Bank published a list of significant financial companies. It included 53 institutions operating in different segments, including microcredit, leasing, factoring and payment services. Inclusion in this list is not a ranking and does not indicate the quality of a business. It means that a company has a notable scale, market share or level of risk and is therefore subject to enhanced supervision. Almost all of the largest online lending services for individuals were included among the significant companies. This confirms that the core of the market has already formed and controls the main volumes of loan issuance, the client base and revenues.

According to NBU data for the first quarter of 2026, Ukr Credit Finance LLC generated the highest income from consumer lending, earning almost UAH 1 billion between January and March. It was followed by Spozhyvchyi Tsentr with UAH 722 million, Ye Hroshi with UAH 713 million, Aventus Ukraine with UAH 677 million and Groway with UAH 591 million. The combined income of financial companies exceeded UAH 27 billion in the first quarter of 2026. This amount includes the results not only of microfinance organizations, but also of companies providing leasing and factoring services. According to estimates, the five largest lending services could account for 15–20% of the consumer lending segment. Concentration can have both positive and negative consequences. Large companies have more resources to develop technology, automate scoring, strengthen cybersecurity and comply with regulatory requirements. They can also serve a broader client base and offer different credit products.

However, concentration means that an increasing share of credit risks accumulates within a narrow group of institutions. If portfolio quality deteriorates, problems at several large companies may have a more noticeable effect on the entire sector. In addition, a reduction in the number of participants may weaken competition in the longer term. Market growth has been accompanied by a rapid increase in household debt. By the end of 2025, the total amount owed to non-bank lending organizations had increased 3.4 times compared with the beginning of 2023 and reached UAH 27.65 billion. An increase in the loan portfolio does not by itself prove that borrowers’ financial circumstances have deteriorated. It may have been influenced by the recovery of economic activity, the return of demand for financial services and the expansion of credit limits. At the same time, this dynamic shows that non-bank loans are playing an increasingly important role in financing households’ daily needs. The average amount of a single loan also increased. According to Opendatabot, it amounted to UAH 4,100 in 2020 and UAH 6,600 at the beginning of 2026. The increase was almost 61%.

Part of this difference can be explained by inflation and higher prices for goods and services. Companies also raised available credit limits and developed products with longer repayment periods. However, the increase in the average loan amount also means a rise in the potential debt burden. Studies of consumer behavior show that a significant share of clients use non-bank loans not for large purchases or investments, but to cover current expenses. According to an NBU survey conducted in 2025, 46% of clients took out loans for everyday purchases before payday, while another 22% borrowed for medical treatment. According to estimates by the Association of Ukrainian Banks, up to 75% of borrowers use credit funds to finance current needs. This demonstrates the important role of rapid lending for people who temporarily lack their own funds. At the same time, this structure of demand points to the financial vulnerability of a significant share of clients. A loan used to pay for food, utilities or medical treatment does not generate new income from which it can be repaid. If the borrower does not receive sufficient income during the next period, they may be forced to extend the loan term, take out another loan or fall into arrears. There are no complete official statistics on the share of problem loans in the non-bank sector. According to estimates by representatives of the All-Ukrainian Association of Financial Companies, the share of overdue loans may reach 30–40% during periods of macroeconomic instability. This figure cannot automatically be applied to the entire market or treated as permanent. However, it indicates a high potential level of credit risk. The absence of detailed statistics on problem loans makes it more difficult to assess the actual quality of portfolios.

Another notable change has been the increase in lending periods. In 2025, about 60% of credit agreements involved loans with terms ranging from three to twelve months. The volume of loans with terms of two to three years increased 36-fold. This means that the market is gradually moving away from the model of short-term loans issued for several weeks. Financial companies are increasingly offering products with regular payment schedules and longer repayment periods.

A longer term may reduce the size of the monthly payment and allow the burden to be distributed more evenly. At the same time, it increases the period during which the borrower pays interest and raises the risk that their financial circumstances may change before the agreement ends. The increase in loan terms and amounts effectively brings some microfinance organizations closer to the model of conventional consumer lending. This requires companies to conduct more sophisticated assessments of solvency, reserve funds and monitor portfolio quality. The sector has already demonstrated its ability to adapt quickly to the shock of 2022. It returned to growth, increased profits and went through a large-scale reduction in the number of companies. However, the next stage of development will be more difficult. The main question is no longer whether companies will be able to increase loan issuance. The key challenge will be their ability to maintain the quality of credit portfolios while household debt is rising, loans are frequently used to finance basic expenses, and part of the risks is concentrated among the largest participants. The market’s future stability will depend on the quality of scoring models, companies’ ability to assess clients’ actual incomes, the transparency of lending terms and the effectiveness of NBU supervision. High profits and portfolio growth are not in themselves proof of healthy development if the share of borrowers using new loans to repay old ones or finance daily consumption is also increasing. Ukraine’s online lending market has already moved beyond the post-war recovery stage and is entering a period in which the main indicator will be not the speed of growth, but its quality. The balance between company profitability, client solvency and the level of overdue debt will determine whether the sector becomes a stable part of the financial system or accumulates problems that emerge later.