Izvestia: the Council at the Central Bank proposed to introduce holidays for consumer loans

by time news

The working group of the expert council on the protection of consumer rights of financial services at the Central Bank has developed amendments, which propose to extend the credit vacation mechanism to consumer loans, the Izvestia newspaper reports with reference to the document. Since 2019, the mechanism has been working for mortgages, and in 2020 it acted as a temporary measure due to the coronavirus pandemic.

According to the proposals of the Central Bank’s working group, quoted by the newspaper, it is proposed to limit the credit holidays for borrowing in cash to three months, and not six, as in the case of a mortgage. With this amendment, the government has the right to extend the grace period to six months.

The amendments also propose to reduce the duration of a prolonged illness that qualifies for credit vacations from two months to one. It is also proposed to give the opportunity to submit an application through the “State Services”. Izvestia’s sources note that the regulator is still considering the initiative and will work out a decision by the end of the year.

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