New Russian advertising rules require full loan cost disclosure across channels
A law in Russia took effect on October 23 that bans banks and microfinance organizations from advertising only the most attractive interest rates. The regulation, issued in the materials from the Bank of Russia, aims to ensure clarity and transparency for consumers across all advertising formats.
According to the Central Bank of the Russian Federation, the update covers all forms of advertising. This includes text advertisements on websites and mobile apps, as well as audio ads. Financial institutions must now display the complete cost range of a loan, expressed as an annual percentage rate, whenever a product is promoted.
The amendments to the law on consumer credits and other related Russian acts require that all information about loan costs be shown in the same font and level of emphasis as the most favorable interest rate. Several parameters must stand out at least as much as the headline rate, enabling consumers to quickly assess what they are paying for and what extras might be included to achieve a lower nominal rate.
The Central Bank emphasized that these rules help borrowers focus on the full terms of the loan agreement and assess their financial obligations more deliberately before signing.
Earlier, Andrey Ponomarev, CEO of the online finance platform Webbankir, outlined three ways to maximize loan eligibility and the amount available. This guidance remains relevant as lenders broaden disclosures and adjust marketing practices to comply with the new standard. In a related development, the digital ruble law had already taken effect, signaling ongoing reforms in Russia’s financial infrastructure and payment systems.