Russia has banned the issuance of micro-loans secured on dwellings

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www.vsyako.netPhoto: Evgeny Odinokov / RIA Novosti

The state Duma adopted in third final reading the law forbidding to give micro loans under the home equity or stake in it, reports TASS.

According to the speaker of the state Duma Vyacheslav Volodin, the law will allow “to stop sweeping the regions of the wave housing raider”. However, microfinance institutions (MFIs) will be able to issue loans secured by non-residential premises.

The adopted amendments also specify requirements for size of own funds of the MFI. Instead of 10 thousand roubles in the capital of companies must be at least a million rubles from July 1, 2020, with an annual increase to five million rubles on 1 July 2024.

In addition, all MFIs will now have an additional opportunity to identify clients with state information systems. This will reduce cases of fraud with issuance of loans in foreign passport.

In February the President of Russia Vladimir Putin ordered to stop the illegal actions against citizens on the part of microfinance institutions and collectors. The corresponding order was included in the list of presidential instructions following the address to the Federal Assembly.

Video, photo All from Russia.

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