Creditors’ ads to specify both minimum and maximum interest rates
Advertising their products, credit institutions shall notify consumers of the range of the total cost of credit in per cent per annum.
According to the new legislative standard to become effective on 23 October, banks and microfinance organisations may not advertise only attractive interest rates, including in text ads, namely on their websites and in mobile applications, and audio ads.
Full information on the total cost of credit and the most attractive interest rates shall be provided using the same font, and all the parameters shall be equally readable. Consumers will thus be able to clearly understand what additional products or services they will have to purchase in order to raise a loan or a microloan at more attractive interest rates.
The Bank of Russia believes that the new standard will help borrowers pay attention to additional terms of loan agreements and assess their financial burden more prudently.