Cap on total interest and fees payable on loans and microloans to be decreased from 1 April 2026
The cap has been reduced from 130% to 100% of the principal. This legal provision applies to new loans and microloans issued for up to one year by banks, microfinance organisations, pawnshops, and consumer credit cooperatives (CCCs), including agricultural CCCs.
For example, if an individual takes out a ₽10,000 microloan, interest, penalties, and all other charges cease to accrue as soon as their total amount reaches 100% of the principal. Therefore, the borrower will have to repay no more than ₽20,000.
The cap on total interest and fees should be specified on the first page of an agreement before the table setting out individual terms of a consumer loan or microloan. Drafted with the active participation of the Bank of Russia, the law is aimed at protecting borrowers and reducing households’ over-indebtedness.