If a business or entrepreneur has multiple outstanding loans, they may be eligible for six-month repayment holidays for each loan once every five years. This comes after the State Duma approved the relevant law in its second and third readings.
Businesses that secured loans under subsidized lending programs for small and medium-sized enterprises (SMEs) will also qualify for loan repayment holidays. Businesses can apply for these breaks regardless of their sector or whether their earnings have declined.
A break will be granted if a loan or microloan does not exceed certain amounts: ₽60 million for micro businesses, ₽400 million for small businesses, and ₽1 billion for medium-sized businesses. Self-employed individuals are entitled to repayment holidays if their loan does not exceed ₽10 million. The Russian Government may revise these limits in the future.
During the repayment holiday period, interest will accrue at the rate specified by the loan agreement and will be capitalized monthly. Borrowers can apply for loan repayment holidays under agreements signed before the law’s adoption but no earlier than March 1, 2024.
The law is set to take effect on October 1, 2025. It does not prevent banks from restructuring SME loans or offering loan repayment holidays through their internal programs.
