Bank of Russia reintroduces TCC limit on consumer loans and microloans on 1 April 2025
The total cost of credit (TCC) under consumer loan (microloan) agreements concluded or amended on or after 1 April 2025 shall not exceed the average market value for the relevant categories of loans (microloans) by more than one third. The TCC limit will help control the growth of loan interest rates, thereby protecting borrowers’ interests.
In 2024 Q4, the Bank of Russia decided to temporarily cancel the TCC limit,1 so that financial institutions could adapt to tighter monetary conditions. During the period of easing, market participants had time to adjust the cost of their credit products. Now that market conditions have generally stabilised and the cost of funding has begun to decline, financial institutions will be able to comply with the TCC limit as usual.
1 From 10 October 2024 through 31 March 2025, the Bank of Russia suspended the TCC limit on consumer mortgage loans issued by credit institutions to buy (build) a house or a land plot.
From 1 January through 31 March 2025, the regulator suspended the TCC limit for credit institutions – on the remaining categories of consumer loans (microloans); for consumer credit cooperatives, agricultural consumer credit cooperative, and pawnshops – on all categories of microloans; and for microfinance organisations – on certain categories of microloans.
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