A new Russian law, signed by President Vladimir Putin, tightens the rules for short term consumer loans. The measure, which takes effect on July 1, 2023, sets lower caps on daily interest, total loan costs, and overage payments for loans issued to individuals. The official publication of the act confirms the changes. Attribution: portal legal information.
Under the terms, the daily interest rate for consumer loans with a repayment period not exceeding one year is reduced from one percent to zero point eight percent. The annual ceiling for the loan cost is lowered from three hundred sixty five percent to two hundred ninety two percent, and the cap on all payments combined is cut from one hundred fifty percent to one hundred thirty percent of the loan amount. Attribution: portal legal information.
Additionally, the law halves the maximum fixed payment on microloans to individuals, setting a limit of up to ten thousand rubles for loans repaid within a fifteen day period. Interest, penalties, and commissions on these microloans will cease to accrue once the total payments reach fifteen percent of the principal debt, down from the previous thirty percent threshold. Attribution: portal legal information.
Previously, it was reported to the State Duma of the Russian Federation that a third reading had been passed to tighten standards for microfinance institutions in making loans to citizens. Attribution: portal legal information.