Permanent mechanism of consumer loan repayment holidays to be launched on 1 January 2024
It will become possible to have one repayment holiday for a loan due to a reduction in the borrower’s income and one repayment holiday if he/she falls a victim of adverse circumstances. Payments may be suspended for up to six months. A person may reckon on a loan repayment holiday if his/her income has decreased by more than 30% over the past two months compared to the average amount in the previous 12 months.
The borrower should personally provide the lender with documents confirming the right to such a holiday. The borrower’s bankruptcy, an effective court ruling, or existing loan repayment holidays under another law (e.g. for participants in the special military operation) could be grounds for a refusal.
Borrowers may take repayment holidays only if the amount of a loan does not exceed the limit set by the Government of the Russian Federation. Currently, the law sets the following limits:
₽1.6 million — for car loans;
₽450,000 — for other loans;
₽150,000 — for credit cards.
During the loan repayment holiday period, no fines (penalties) will be charged, and lenders are not entitled to seize pledged collateral or appeal to guarantors. However, interest is accrued in full, and the borrower repays it after the repayment holidays are over.
Information on the provision of loan repayment holidays will remain in the borrower’s credit history but will not negatively affect it.