Published on: 2026-11-05
Source: Mainfin Bank –
An important disclaimer is at the bottom of this article.
Starting from October 1, 2026, the Bank of Russia will begin to apply a new regulation prohibiting microfinance organizations (MFOs) to issue citizens a third loan with a full loan cost (Annual Percentage Rate) exceeding 200% per annum when two other similar obligations exist. This measure is aimed at preventing the formation of debt pyramids among the population.
Regulatory profile and company status
The Bank of Russia is the main regulator of the financial market of the Russian Federation. According to the official register, the organization supervises the activities of financial institutions, including microfinance companies. In accordance with current legislation, the Bank of Russia has the authority to establish standards and impose mandatory requirements on participants in the financial sector.
Financial and Operational Results
According to the report of the Bank of Russia, about one-third of all borrowers from microfinance companies have two or more expensive loans with a high APR. Such clients often use short-term loans to cover the interest of previous debts, worsening their financial situation. The new regulation is intended to prevent such situations and protect the interests of the most vulnerable categories of borrowers.
Risk assessment and market impact
The ban on issuing a third expensive loan significantly restricts the ability of microfinance organizations to attract new clients with high risks. However, this does not mean a complete ban on obtaining loans – clients will be allowed to obtain standard loans or loans with a moderate effective interest rate (APR < 200%) that comply with the requirements established by the Central Bank.
Frequently Asked Questions (FAQ)
- How does an MFO determine the presence of multiple loans for a client?
Microfinance organizations are required to regularly submit information about issued loans to credit history bureaus. The scoring system automatically tracks the number of active contracts and decides to refuse the issuance of a new loan if the established limit is exceeded. - Are bank credit cards taken into account when counting the number of loans?
Yes, credit cards are taken into account if the full cost of the credit exceeds the established threshold (more than 200% per annum). For example, cash withdrawals from a credit card may lead to exceeding this threshold.
Thus, the new policy of the Bank of Russia represents an important step towards improving the financial literacy of the population and reducing the level of citizens’ over-indebtedness.
15:15 13.10.2026
Source: Bank of Russia: New restrictions for MFIs from October 1.
Please note; This information is raw content obtained directly from the information source. It is an accurate report of what the source asserts and does not necessarily reflect the position of MIL-OSI or its clients.