The actual cost of goods marketed as free installments could run as high as 60% per year, a figure cited by Alexander Danilov, head of the regulatory department at the Bank of Russia, in a report by RBC. Danilov explained that such a rate would erase any apparent savings from choosing installments and could push households toward a debt trap. The Bank of Russia is examining how these terms fit into consumer protection rules and whether they match the financial reality of families across the country. The discussion underscores rising concern about credit products that lure buyers with zero upfront costs while embedding expensive terms that only appear in the fine print.
On the Finopolis forum, a poster asked: Have you seen somewhere a free installment plan? The question, shared by Finopolis, reflected skepticism about whether such offers really exist.
Danilov noted that most installment plans carry conditions. There is a penalty if payments are missed, and late payments incur additional fees. He said the prospect of a 60% annual rate shows why tighter oversight is needed.
According to the expert, regulation is necessary because these terms can affect a household budget. The Bank of Russia wants to shield consumers from terms that could destabilize family finances and push many into higher levels of debt.
Danilov also pointed out that the Bank of Russia is focusing its review on larger companies rather than marginal installment services. The effort aims to ensure that major retailers and platforms adhere to clear, fair terms that protect buyers without stifling legitimate credit access.
RBC reported that a bill has been submitted to the State Duma to cap the maximum installment period at six months from December 2025 and at four months from December 2027. The limit on free installments would be 15 thousand rubles. Marketplaces pressed the authorities to remove this cap. The changes would also prohibit sellers from setting different prices for the same product depending on whether it is bought in installments or upfront.
Associate Professor Pyotr Shcherbachenko of the Financial University under the Government of the Russian Federation argued that a 15 thousand ruble limit is not enough to buy socially important goods such as household appliances and electronics. He stressed that to reduce the debt burden on the population, discussions should center on building a financial safety net and increasing financial literacy across society.
Earlier reports indicated that Russians predominantly rely on microloans, reflecting a preference for flexible borrowing options when installment plans do not meet the needs of everyday life.