From September 1, non-bank credit institutions must apply the requirements for responsible lending.
This is provided for by the Regulation on Responsible Lending Requirements Applied to Non-bank Credit Institutions, approved by the National Commission for Financial Market. The regulation establishes a number of requirements for non-bank credit institutions registered in the Register of Authorized Non-bank Credit Institutions that relate to the provision of a non-bank loan and/or financial leasing, including the conditions and procedure for assessing the ability of a consumer to repay a non-bank loan and/or financial leasing, as well as the degree of collateral. The document sets out the principles of responsible lending and the rules for assessing consumer creditworthiness. Thus, before concluding a loan agreement with a consumer, an non-bank credit institutions must assess his /her creditworthiness (based on information on confirmed income); be based on the principle of credit repayment by the income of the consumer, and not on the enforcement of the pledged property; evaluate the real ability of the consumer to fulfill his/her obligations under the loan agreement, and not the expectations of the growth of the income; comply with the limitation of the maximum loan repayment period, etc. The document contains restrictions on the ratio between loans and guarantees (for investments in real estate - up to 80%); the ratio of payments on loans to income (40%, with a few exceptions). Responsibility for violation of the requirements of responsible lending lies entirely with the non-bank credit institutions, including if loans are provided through credit intermediaries. // 24.06.2022 — InfoMarket.
