Translation. Region: Russian Federation –
Source: Central Bank of Russia
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Banks and microfinance organizations are gradually are crossing over more accurate methods of assessing the borrower's income to calculate his debt burden. In particular, in accordance with Bank of Russia Instruction No. 7286-U Starting April 1, bank statements can only be used to confirm wages, pensions, social benefits, and income from property rentals. Other account receipts will need to be supported by additional documents. For example, a borrower can provide a certificate of income from deposits or securities.
Furthermore, for salary clients, banks were able to use internal models approved by the Bank of Russia to evaluate sources of income other than salary. Banks did this, in particular, based on the individual's expenses. Starting April 1, the Bank of Russia will no longer accept such models for review. Models approved prior to this date will be available for use by banks for one year from the date of their approval. After this date, creditors will need to obtain supporting documents from salary clients to take into account other sources of income.
At the same time, banks and microfinance organizations will still be able to use a wide range of income documents obtained from government information systems or directly from the borrower, such as a personal income tax certificate or a salary account statement.
Starting April 1, it will no longer be possible to use self-issued documents to assess the income of individual entrepreneurs. However, individual entrepreneurs retain the right to issue salary certificates to their employees, and they will be able to confirm their own income using tax returns and income and expense records.
The simplified approach, in which borrowers declare their income on the bank's application without providing supporting documents, will also remain in place. However, this approach will be gradually curtailed. While lenders can currently factor in declared income up to the regional average per capita income according to Rosstat when calculating their debt burden, starting July 1, 2026, banks will be required to apply an additional 10% discount. Starting July 1, 2027, the simplified approach is planned to be completely abandoned, with only borrowers' officially confirmed incomes being considered.
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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.
