Translation. Region: Russian Federation –
Source: Central Bank of Russia
An important disclaimer is at the bottom of this article.
Overpayments now cannot exceed 100% of the loan amount instead of 130% previously. Thisnorm of law applies to new loans and credits issued for a period of no more than one year by banks, microfinance organizations (MFOs), pawnshops, and credit consumer cooperatives (CCCs and SKPKs).
Thus, if a person borrows, for example, 10,000 rubles from an MFI, interest, penalties, and all other charges cease to accrue once the total amount reaches 100% of the debt. Ultimately, the borrower will be required to repay no more than 20,000 rubles.
The overpayment limit is indicated on the first page of the agreement, before the table containing the individual terms of the consumer loan or credit. The law, which the Bank of Russia actively contributed to, is aimed at protecting borrowers' interests and reducing the debt burden of individuals.
Preview photo: Elizaveta Galitckaia / Shutterstock / Fotodom
Please note: This information is raw content obtained directly from the source. It represents an accurate account of the source's assertions and does not necessarily reflect the position of MIL-OSI or its clients.