Loans with floating rates have been prohibited since autumn in Russia

Since September 1, banks have been banned from providing loans with variable interest rates for periods exceeding 20 years. As explained in Rospotrebnadzor for the Republic of Belarus, banks will be able to issue loans with a floating rate, in fact, only in two cases:

- if it is a mortgage loan for no more than 20 years and 200 to 1000 average monthly salaries in Russia. Thus, at the current salary level, the lower limit for a mortgage with a floating rate will be about 15 million rubles, and the upper limit will be approximately 73 million.

— A floating rate can be applied to consumer loans if the amount exceeds the average monthly salary by 200 times (15 million rubles or more).

At the same time, a “ceiling” of 4% is set for “floating,” above which the bank will not be able to raise interest for the borrower.

This rule applies to both individual borrowers and micro-enterprises.

In addition, banks must provide at least 15 days' notice of rate changes. Having received the notification, the borrower has the right to request an increase in the loan repayment period within three months, but only for a period of no more than four years.

Author: Elina Akhmetova