Bank of Russia explains how borrowers in Kursk, Bryansk, and Belgorod Regions can take loan repayment holidays
Residents of the regions who have been evacuated from the emergency areas or have lost their property as a result of the recent events are entitled to apply to their lenders for a deferral of payments under loan (microloan) agreements for a period of up to six months. This is stated in the Bank of Russia’s information letter.
Banks and non-bank financial institutions should consider applications for loan repayment holidays using a simplified procedure. The regulator advises them to accept any documents available to borrowers, which may be used to confirm hardships. These may be titles to residential property, permanent or temporary residence registration, or certificates of temporary accommodation in the emergency area, and so on.
Borrowers may be granted loan repayment holidays if their outstanding mortgages do not exceed ₽15 million, car loans — ₽1.6 million, credit cards — ₽150,000, or other outstanding loans — ₽450,000.
Furthermore, the Bank of Russia recommends that lenders meet borrowers’ needs and satisfy their requests for restructuring loans even though they fail to comply with legal requirements, e.g. the loan amount exceeds the limit established by law.
The letter reads that those who have already enjoyed such a benefit but for other reasons (e.g. in case of decreased incomes) are also entitled to apply for loan repayment holidays.
During the holidays, no penalties (fines) are accrued. In addition, lenders are recommended to consider specific life situations and reduce interest rates even down to zero.
In particular cases (loss of labour capacity, permanent disability), lenders may fully or partially forgive debt.
The letter also notes that the fact of restructuring should not negatively affect a borrower's credit history.
Additionally, the Bank of Russia's recommendations for SME loan restructuring remain in force until the end of 2024. The earlier signed loan (microloan) agreements may be changed so that the fulfilment of borrowers’ obligations may be suspended for a time period agreed upon with the lenders with zero penalties or fines.
All questions about receiving financial aid in servicing their loan agreements, residents of the Kursk, Bryansk, and Belgorod Regions can address to the Bank of Russia hotline: