Moratorium on limiting TCC for consumer loans and certain microloans lifted from 1 July

The total cost of credit (TCC) under consumer loan (microloan) agreements signed or amended in 2024 Q3 may not exceed the market averages calculated by the Bank of Russia for respective loan (microloan) categories by more than one-third. The market averages of the TCC were published on the regulator's website in May.

The decision not to extend the moratorium, effective since mid-August 2023, has been made because market rates have been sufficiently steady over the previous five months.

Furthermore, the Bank of Russia deems it expedient not to apply measures to credit institutions that have failed to comply with the TCC limit on consumer loans (microloans) issued to borrowers with high debt service-to-income ratios.¹

The Bank of Russia has sent its information letter to notify credit institutions of its approach to comparing loans (microloans) issued (amended) in 2024 Q3 with the categories for which the market averages of the TCC were published in May.

When preparing reports² for 2024 Q2 and further on, credit institutions should follow the new rules effective since 1 April 2024.

¹ As these loans (microloans) are defined for completing Section 2 of Reporting Form 0409126 'Weighted Averages of the Total Cost of Consumer Loans (Microloans) in Per Cent per Annum' (as amended by Bank of Russia Ordinance No. 6621-U, dated 8 December 2023, 'On Amending Bank of Russia Ordinance No. 6406-U, Dated 10 April 2023').

² Reporting Form 0409126 'Weighted Averages of the Total Cost of Consumer Loans (Microloans) in Per Cent per Annum'.

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