In Russia, they to introduce a new condition for issuing loans to citizens

The authorities want to legally obligate banks and microfinance organizations to calculate the limit debt burden (PDN) for each Russian who addressed the consumer loan amounting from 10 thousand rubles, and to inform borrowers about the severity of payments in case of its exceeding. This is written “Izvestia”.

The bill developed with the support of the Bank of Russia will be reviewed by the State Duma in October. At the same time, the government supports this initiative.

on the idea, the PD will clearly demonstrate the borrower, which part of the income it will be directed to the repayment of debt. It is assumed that this will allow a citizen to soberly appreciate its capabilities and think about the need for a loan. The Central Bank noted that the bill will provide additional protection of the interests of both parties, and will also contribute to increasing the financial literacy of the population.

An indicator of maximum debt burden as a criterion for evaluating borrowers, which are required to use banks when considering loan applications from potential individuals, the Central Bank introduced in October 2019. It is equal to the ratio of monthly payments for all human loans (including credit cards and microcredits) to its income.

The maximum permissible values ​​of the PDN is not established, produce their own policies and make a final decision depending on the financial situation of a particular client. However, the introduction of PD has already led to a reduction in the volume of issuing consumer loans.

/Media reports.