The main purpose of the changes is that when calculating the PIC, lenders took into account all the borrower’s expenses for the debt – insurance, payments and so on. – and these expenses were limited by the maximum value of the PSC.

“When discussing the law, which was adopted this summer and comes into force on January 21, 2024, market participants expressed concerns that there could be a flow of people from banks to microfinance organizations, where a higher PSC is allowed. As a result, a separate category of borrowers with increased risk was identified,” said the head of the Central Bank’s financial stability department, adding that it would still be more profitable than in MFOs.

So far, the debt burden indicator (PDI, the share of income that the borrower spends on debt servicing) above 60% is being discussed as a criterion for a risky client. But the issue is still being discussed, the approval process is underway.

For now it is assumed that these will be small loans of up to 100 thousand rubles. According to Elizaveta Danilova, they will not be subject to restrictions on the full cost of the loan (the rate is no more than a third higher than the average). She recalled that against the backdrop of an increase in the key rate, the Bank of Russia plans to extend the moratorium on limiting the PSC for all loans until April 1, 2024.