Mortgage lending terms to be presented in a table

The most important terms of mortgage-backed consumer loans that need to be approved by borrowers before they sign the agreement will be presented in a table. This new requirement was introduced by the draft Bank of Russia Ordinance, which was published to assess its regulatory impact.

The loan conditions table should include the loan amount, its due date and interest rate, means of repayment (including free-of-charge option), as well as a list of paid services provided by the lender and information on whether the lender is allowed to assign claims under the loan agreement to third parties.

The table format, which is already used when concluding a consumer loan agreement, makes it easier for borrowers to understand the main terms of agreements they sign. This approach provides an efficient way to inform consumers and help them to assess their risks while making the decision to get a loan. It also promotes a more responsible attitude towards the fulfilment of loan obligations.

The draft Ordinance is expected to cover all organisations that provide mortgage consumer loans.