Loans – New Rules

On October 7, 2025, the Council of the Republic approved the bill "On Amending Laws on the Provision of Loans."

The main changes concern loans between individuals, except individual entrepreneurs:

• under a pledge agreement concluded to secure the borrower's obligations under a loan agreement, as well as under a surety agreement securing such a loan, the pledged property cannot be the pledger's only residential building (apartment), or a share in the common ownership of the pledger's only building (apartment);
• it is prohibited to include into loan agreements provisions on default interest rates or any additional fees, unilateral increases in interest rates, penalties (fines), unilateral changes to the loan term by the lender, or the application of penalties (fines) for early repayment;
• the interest amount cannot exceed half the loan amount (if the loan is provided for a term of no more than one year) or the loan amount (if the loan is provided for a term of more than one year);
• the total amount of penalties (fines) and other payments related to the breach of the terms of the loan agreement may not exceed half the loan amount;
• loans in foreign currency, as well as in an amount equivalent to a certain amount in foreign currency or conventional monetary units, are permitted only between close relatives.

The Law is scheduled to enter into force six months after its official publication. When extending loan agreements between individuals (except for individual entrepreneurs), they are to be brought into compliance with the Law.