The Bank of Russia announced the reinstatement of the Total Cost of Credit (TCC) limit on consumer loans and microloans starting from April 1, 2025. The reintroduced TCC limit ensures that the total cost under consumer loan agreements, whether newly concluded or amended, does not exceed the average market value for relevant loan categories by more than a third. This measure aims to manage the rise in loan interest rates and safeguard borrowers’ interests.
In the fourth quarter of 2024, the Bank of Russia had temporarily removed the TCC limit to allow financial institutions to adjust to tighter monetary conditions. During this period, market participants could recalibrate their credit product costs. As the market conditions have stabilized and funding costs have started to decrease, financial institutions are now expected to adhere to the TCC limit as usual.
From October 10, 2024, to March 31, 2025, the Bank of Russia had suspended the TCC limit on consumer mortgage loans issued by credit institutions for purchasing or building houses or land plots. Additionally, between January 1 and March 31, 2025, the regulator also suspended the TCC limits for other consumer loan categories and for various credit institutions, including consumer credit cooperatives, agricultural credit cooperatives, pawnshops, and certain microfinance organizations.
The reference to the Press Service is mandatory if you intend to use this material.
