Central Bank proposed to limit rates on consumer loans

Galina Bakhshieva

UFA, 24 October 2018. /Bashinform News Agency/ translated by Tatiana Aksyutina/. The Central Bank proposed to limit the rate on loans to 1% per day, RBC cites amendments to the laws “On Consumer Credit (Loan)” and “On Microfinance Activities and Microfinance Organizations” prepared by the regulator.

Restrictions should be effective since July 1, 2019. Until that time (since the adoption of the law), the limit will be set at 1.5% per day. The document also notes that the rate on consumer loans on any day of using the loan cannot exceed the average market value of total consumer credit calculated by the Bank of Russia by more than one third.

Until July 2019, the size of fines and interest on consumer loans will be limited to 2.5 times the amount of the initial loan. From July 2019 to July 2020, the restrictions will amount to the double amount of the loan.

Now the law “On microfinance activities and microfinance organizations” imposes restrictions on microfinance organizations on the collection of interest and penalties at a time when their total amount is three times more than the amount of the loan.

The proposed measures enhance the protection of consumers of microfinance organizations. The measures proposed by the regulator affect not the entire market of microfinance organizations or even the entire segment of payday loans.

At the same time, “in order to preserve a possibility for citizens to quickly receive small amounts for a short period of time,” the Central Bank will not extend the limits on unsecured loans for more than 15 days and not more than 10 thousand rubles.

#central bank #loans #rates

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