New B2B and P2P Lending Products Tested in Mongolia

Mongolia is continuing to test new digital lending products for businesses and individuals. According to the financial regulator, seven new financial solutions have been launched in pilot mode, including B2B lending platforms for entrepreneurs.

Business lending reaches 124.6 billion MNT

Since January 2024, a total of 124.6 billion MNT has been issued through new B2B lending platforms. The segment currently includes 292 registered corporate clients.

Loans are short term, ranging from 7 to 42 days. The average monthly interest rate is around 1.5 percent. The model is primarily designed for small and medium sized businesses that need fast access to working capital.

P2P lending gains momentum

At the same time, P2P lending is expanding through digital platforms where private investors directly finance borrowers.

Since launch, more than 11,500 people have used these services. The total volume of issued loans has reached approximately 4.1 billion MNT, with 3.9 billion MNT already repaid. The non performing loan ratio remains low at under 1 percent.

The average monthly interest rate is about 2 percent. Most loans are short term with maturities of up to three months.

What this means for the market

The expansion of digital lending is increasing competition in Mongolia’s financial market. For small businesses, it means faster access to short term financing. For private investors, it offers an opportunity to earn returns through alternative financial instruments.

At the same time, the regulator is assessing the sustainability of these new models and their impact on the banking sector. If the pilot phase proves successful, the products may receive full regulatory approval and scale across the market.