The President of the Russian Federation limited floating rates for loans to the population and microbusinesses

Variable loan rates will only be available if certain conditions are met, namely:

• For mortgage loans, the minimum rate is equal to 200 average monthly salaries of the borrower, the maximum is equal to 1,000 average monthly salaries. Duration: no more than 20 years;
• For consumer loans, the amount must be 200 times the average monthly salary.

In the case of a consumer loan that meets the new requirements, there are no restrictions on the repayment period or rate changes. Conditions are specified for mortgage loans, as well as for loans to microenterprises.

The rate on them cannot change by more than a third of the base value (but not more than 4 percentage points). The lender must also notify the borrower of the changes within 15 days.

If the rate increases further, the borrower (a citizen or a microbusiness) can demand the lender to increase the payment terms. The extension period may not exceed the original period by more than a quarter nor may it exceed four years.

The document also notes that a number of microenterprises in industries that will be determined separately by the government of the Russian Federation will not be subject to the law.

The new rules are also invalid for micro-businesses that received loans under state programs with budget subsidies to compensate for lost income, as well as with the guarantee of the VEB, the SME Corporation and credit assistance funds.