The Central Bank of Russia will bar microfinance organizations from issuing a consumer loan with an effective annual rate above 200% to a borrower who already has two such outstanding loans. The restriction, which continues the regulator’s effort to curb repeat high-cost borrowing, is intended to prevent borrowers from taking new loans to repay existing debts and deepening their debt burden. About one-third of microfinance organizations’ customers had at least two expensive loans at the end of the first half of 2026. Borrowers will need to have no more than one outstanding loan above the 200% threshold to obtain another, although lenders may grant a loan below that threshold if the borrower’s income is sufficient to service it. From April 1, 2027, the central bank plans to tighten the limit to one loan above 100% per year and require a cooling-off period of at least three days between repayment of one expensive loan and issuance of another.
Central Bank of Russia restricts concurrent high-cost microloans and plans tighter April 2027 cap
The Central Bank of Russia will prevent microfinance organizations from granting loans above a 200% effective annual rate to borrowers who already have two such loans. From April 1, 2027, it plans to limit borrowers to one loan above 100% and impose a cooling-off period of at least three days between expensive loans.