In Russia from 1 January 2020 will enter into force on the last stage of restrictions limiting the debt on the consumer credits and loans.
The maximum amount of interest on loans for up to one year should not exceed the debt more than 1.5 times, reports RIA “Novosti”.
The limitation applies to penalties, including fines and penalties, and payments for services rendered by a lender to a borrower for a fee under the contract of consumer credit.
The tightening of consumer loans began in January 2019, and during that time the maximum interest rate has decreased by half.
Recall also that, by the end of November 2019, at 6.1% of borrowers in Russia had credits in four or more banks, and in 5 years the share of such clients doubled (in November 2014, was 3.15%), estimated by experts of credit bureaus “Equifax”.
Currently, the group of the most risky borrowers, there are about 2.5 million Russians.
As pointed out in “Equifax”, in recent years, citizens have increased the number of “banks in the wallet”, but return migration does not take place. Analysts attribute this trend of rising debt load of the population.
In late December, in an interview with TV channel “Russia 24” the head of Ministry of economic development (MED) Maxim Oreshkin said that the debts of the population of the Russian Federation on the consumer credits will increase at the end of the year to 1.7 trillion rubles. However, he noted that “the problem is still in some degree remains with the consumer loan — it grew much faster than rising incomes”.
According to estimates of the Central Bank of the Russian Federation, the aggregate debt load of the Russian population for all types of loans made up to 1 October 2019 to 10.6%. This is the highest level since at least July 2012. The total financial burden of the citizens increases with the end of 2017, mainly due to unsecured consumer lending.
The regulator has repeatedly expressed concern about the pace of growth of consumer credit and debt load of Russians, which significantly outpaced the growth of nominal incomes and wages.
In response to the situation, the CBR is obliged from October 1, 2019 Russian banks and microfinance institutions (MFIs) in making decisions about the provision of consumer credit from 10 thousand rubles and more to count so-called debt burden indicator (PDN) of the borrower. That is, the financial institution will evaluate the ratio of monthly loan payments to monthly income of the borrower. Moreover, if the MFI gives the state entities the client of PD exceeds 50%, it will incur additional burden on capital in the amount of 50% of the loan amount (65% from 1 January 2020).
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