Bank of Russia explains procedure for accruing interest on pawnshop loans
15 November 2022
News
Pawnshops should start accruing interest from the next day after a loan is granted unless it has been repaid on the issuance day. This recommendation is provided in the regulator’s information letter.
The federal law on pawnshops does not specify the procedure for calculating the term for accrual of interest on a loan. This is why the Bank of Russia assumes that market participants should be guided by general provisions of civil law.
Over the course of conduct supervision, the Bank of Russia revealed that some pawnshops charge their customers from the date of the agreement, thus infringing customers’ rights and increasing their costs.
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