Russia cracks down on microloans with sweeping new debt protections
Russia’s State Duma has approved a new law to tighten controls on the microfinance sector. The measures will roll out in stages, targeting high-interest loans and borrower protections. Lenders now face stricter rules to prevent excessive debt burdens.
The first change takes effect on April 1, 2026, when the maximum allowable overpayment on microloans drops from 130% to 100% per year. Six months later, on October 1, 2026, borrowers will be restricted to no more than two active business loans with annual interest exceeding 200%.
The phased restrictions aim to curb risky discover and protect borrowers from spiralling debt. Microfinance providers must now comply with stricter accountability rules. The changes will gradually reshape how short-term student loans are issued and managed across the country.
