Where is the most profitable way to borrow money in Ukraine in 2020?

Where is the best place to borrow money in Ukraine: types of loans and their purpose + microcredits + loans for business today.

We are all accustomed to the idea that a person takes a loan if there is not enough money for a large purchase, or a force majeure has arisen, for the solution of which there is not enough money of his own. In 2020, the announced quarantine became such a force majeure for all Ukrainians due to the spread of the coronavirus pandemic. As a result of a long business downtime, even those who have never applied to a bank for a loan thought about taking out a loan. And the question “is it profitable to borrow money” has become one of the most requested.

Sitting at home in quarantine and eating up cash reserves, or even completely stranded due to loss of work, people begin to look for ways of an additional source of financial income. In the current conditions, Ukrainians believe that the ideal option is to take a loan directly to the Privat card. This position is due to the fact that the plastic of this financial institution is the most widespread in the country: people receive salaries, scholarships and pensions for it, simultaneously draw up a credit card or open a credit line on a debit card, and ATMs and terminals of this bank are found at every step. People get easy access to bank funds and get used to the idea that it is profitable to live in debt.

What are the types of loans and their purpose?

At the legislative level, loans can be issued by registered financial organizations: banks, credit unions and pawnshops. The essence of any loan is the issuance of money for a certain period at interest, a person will always return more than he took. A wide range of lending is offered, first of all, by banks. They issue untargeted and target loans for different amounts and terms.


Credit cards are the most accessible type of lending for Ukrainians. Funds can be spent on consumer needs and not indicate the purpose of the loan in the bank. Annual interest is within 40%, but banks provide a grace period for 60-100 days, when money can be used for free. And then financial organizations are allowed to give not the entire amount at once, but a certain percentage. If you make the minimum payment on time, you can profitably live on debt.

Consumer loans are the most popular in the financial market. It provides for a person to receive funds for personal purchases or services. This loan is fairly easy to obtain. If the amount is not large, banks only require a passport.

Car loans, mortgages are loans for individuals for long periods with large amounts of funds. To take this kind of loan, a person needs to meet a number of requirements and collect a package of documents.

Business development loans are issued to legal entities, individual entrepreneurs for various purposes (purchase of goods, increase in production volumes, purchase of equipment or premises for work), which must be indicated when submitting an application.

If you urgently need to borrow money profitably, then credit unions provide the borrower with small amounts of money to break up to paycheck for a short period. In Ukraine, MFOs issue loans in the range of 15 thousand hryvnia, maximum for a month.

You can take money at interest from a private owner if the bank does not approve the loan application, and the amount is needed more than the credit unions offer. A receipt is drawn up for a loan from a notary, and the lender will require a pledge.

What loans and for what purposes are the most profitable to take?

Statistics show that it is most profitable to take non-targeted consumer loans. Their share in the current market of banking services is 85%. Banks provide for use quite significant amounts for a period of 3-5 years, which is quite within the capabilities of Ukrainian borrowers. Such a loan does not imply a mandatory collateral or guarantors, the requirements for the borrower and the package of documents are minimal. Business lending is also gaining popularity over the past and current years. According to analysts, most often representatives of small and medium-sized businesses took out a loan for the purchase of equipment.


1) Microcredits in MFOs and banks: which one is right for whom?

Both financial institutions offer to issue a small loan amount. But a person needs to build on, first of all, from his goals and financial position. If a person has lost his job or cannot officially confirm his income, then he has a chance to get money only in an MFI. They are more loyal to borrowers and require only a passport and card number. In addition, you can receive funds on the card by submitting an application online. To an inexperienced borrower, it may seem that the interest rates are lower here, but credit unions charge daily interest, not annual interest.

Investments in MFOs: a detailed scheme of earnings

Banks in quarantine conditions began to scrupulously check customers. The loan is available only to borrowers with a positive CI, and from the documents they need to bring:

  • Passport;
  • TIN;
  • Income statement;
  • A copy of the job with work experience in the last place in 6 months.

The amount and terms of repayment are greater and the overpayment will be less, but bank loans are not available to unemployed people or retirees over 65-70 years old.

2) Loans at 0%

When the need for money arises, people begin to think not only where to borrow, but also how profitable to repay the debt. For example, the leading MFOs in the Ukrainian market offer the first microloan at 0% to attract new clients. It turns out that this is not a loan, but a loan when there is no overpayment. The amount varies from 6-10 thousand hryvnia for a period of 14-30 days. If money is urgently needed for treatment, car repair or debt repayment without delays, then you can use the services of the credit union one time. In addition, they are available to everyone, even to unemployed clients or those with bad credit history.

Special loans for starting a business

To stimulate the development of micro and small businesses and the return of Ukrainians from earnings in early 2020, the Ukrainian government allocated 2 billion hryvnia for the program of state support for entrepreneurs. If a businessman takes out a loan under this program, then the state compensates him 5%, 7% and 9% per annum, depending on the amount and conditions.


To create a new or expand an existing business, a person has access to up to 1.5 million hryvnia. The compensation percentage depends on the annual turnover:

  • 5% – revenue up to 25 mln. hrn. and the creation of at least 2 jobs in the first quarter;
  • 7% – with revenue up to 25 mln. UAH;
  • 9% – with revenue up to UAH 50 million.

The law guarantees an additional reduction of the rate by 0.5% -1% for MSEs who have issued loans at 7% and 9% for each new job. Thus, it becomes profitable to borrow money from the state for both parties.

Best online loans 2020:

Should I take out a loan for a business during quarantine?

Severe quarantine conditions have threatened the closure of every third small business in Ukraine. To support entrepreneurs, the government announced the refinancing of loans issued for business development and the provision of credit holidays for the quarantine period to all borrowers of financial institutions. Banks are not allowed to charge fines or penalties for late payments. Borrowing money from the state is also beneficial because, according to Prime Minister Shmygal, banks will not stop issuing new loans to businesses, and the interest rate will be reduced to zero. Interest will not be charged when refinancing already issued loans, and banks will give a deferral of one year to repay the loan. But the main condition for entrepreneurs is to keep 80% of jobs.

Of course, such benefits do not exempt from debt on loans. Financial institutions do not write them off, but give time to survive the quarantine without unnecessary financial burden. As we can see, it is quite possible to issue a credit card or microloan for a person experiencing monetary costs. And if he correctly calculates and uses the borrowed funds, he will survive the crisis without unnecessary losses. Moreover, the government took care of the borrowers by announcing a loan vacation.

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