From October 1, Russians will not be able to take out more than two loans with a PSC above 200%
Quick Look
- From October 1, a restriction on the number of simultaneous loans with the full cost of a consumer loan above 200% per annum comes into force in Russia: borrowers will not be able to take out more than two such loans.
- The measure only applies to new applications filed after this date and does not apply to current obligations.
- The SRO "MiR" warned about the risk of turning to illegal lenders if a loan is refused.
AI-generated summary
Why It Matters
In Russia, there is regulation of consumer lending, including restrictions on the total cost of credit (FCC). SRO "MiR" represents the interests of legal microfinance organizations and participates in the formation of industry standards.
Brief retelling from RIA II
From October 1, Russians will not be able to take out more than two loans with the full cost of a consumer loan exceeding 200% per annum.
The restriction will only apply to those customers who apply for a new loan after October 1.
The organization warned Russians against turning to illegal companies if they are refused a loan from official microfinance organizations.
MOSCOW, September 25 - RIA Novosti. From October 1, Russians will no longer be able to take out more than two loans with a full cost of more than 200% per annum each, the press service of the self-regulatory organization (SRO) "MiR" told RIA Novosti.
“From October 1, a change in legislation will come into force that will limit the number of simultaneously existing expensive loans. At the first stage of this law, microfinance organizations will not be able to issue a borrower more than two loans with the full cost of a consumer loan (FCC) exceeding 200% per annum,” they said.
The organization’s press service clarified that this restriction will only apply to those clients who applied for a new loan after October 1.
“Customers who are already servicing two loans will not be affected by this measure in terms of servicing current obligations,” they added.
The organization warned Russians against turning to illegal companies if they are refused a loan from official microfinance organizations.
Open Questions
- What specific changes to legislation come into force on October 1?
- How will compliance with the new restriction be monitored?
- What sanctions are provided for violating the rule?
