The Central Bank of Russia has reinstated the total cost of credit (TCC) limit for consumer loan and microloan agreements concluded or amended on or after 1 April 2025. Under the cap, the TCC for the relevant loan and microloan categories must not exceed the average market value by more than one third, a measure intended to contain increases in loan interest rates and protect borrowers. The cap had been temporarily suspended to allow market participants to adapt to tighter monetary conditions. The suspension applied from 10 October 2024 through 31 March 2025 for consumer mortgage loans issued by credit institutions to buy or build a house or a land plot, and from 1 January through 31 March 2025 for other categories, including remaining categories of consumer loans and microloans for credit institutions, all categories of microloans for consumer credit cooperatives, agricultural consumer credit cooperative, and pawnshops, and certain microloan categories for microfinance organisations.
Central Bank of Russia 2025-03-28
Central Bank of Russia reintroduces total cost of credit cap for consumer loans and microloans from 1 April 2025
The Central Bank of Russia has reinstated the total cost of credit (TCC) limit for consumer loans and microloans effective 1 April 2025. The TCC must not exceed the average market value by more than one third, aiming to control loan interest rate increases and protect borrowers. The cap had been temporarily suspended to allow market adaptation to tighter monetary conditions.