Documents
Documents and procedures
Financial documents may seem dull, but they are where it says how much you will pay and what you will get. Advertising and a staff member's verbal promises do not replace the text of the agreement. Below: which papers to read before signing, which parts to look at first and which rules are set by law in Russia.
The figure in the advert is made up by marketing; the figure in the agreement is written by the bank's lawyers. You will pay by the second one, so read that first.
Below is a general summary of Russian legal requirements and everyday tips for reading documents. The specific terms of each agreement differ, and rules change over time. Rules and institutions also differ in other countries, so readers elsewhere should check their own country's official sources. If anything in a document is unclear, ask before signing and request a written answer.
What to read in an agreement
| Document | Where to look | What to check |
|---|---|---|
| Loan agreement | The first page and the section with individual terms | The full cost of the loan, the amount and term, the size of the regular payment, any mandatory add-on services, the terms of early repayment and the consequences of late payment |
| Deposit agreement | Terms on the period, interest and withdrawals | Whether you can add to the deposit and withdraw part of it, what happens if you close it early, how interest is calculated and paid out, and whether interest is compounded |
| Payment schedule | An appendix to the loan agreement | The date and amount of each payment, how much goes to repaying the debt and how much to interest, and how the schedule changes after early repayment |
| Account or card statement | The transactions section for the chosen period | Whether you recognise every charge, whether there are paid services you did not know about, and whether income and payments match your own records |
The full cost of a loan
In Russia, under Article 6 of Russian Federal Law No. 353-FZ “On Consumer Credit (Loans)”, the full cost of a consumer loan (known as the “PSK”) is shown in a square box in the top right corner of the first page of the agreement. This is so that the borrower sees the key figure straight away instead of hunting for it in the small print.
The full cost reflects not only interest but also other payments linked to the loan. That is why it makes more sense to compare offers by this figure rather than by the rate in the advert. If the figure in the box is noticeably different from what you were told verbally, stop and ask where the difference comes from. Disclosure rules differ in other countries, so check your own country's official sources.
Related sections
- Guides
Step-by-step guides: how to start tracking, build a rainy-day fund, prepare for a big purchase and agree on money with the people close to you.
- Examples
Hypothetical situations: money runs out before payday, a sudden breakdown, a tempting “guaranteed income”, a loan for a gift, a couple's shared budget, pocket money.
- Terms
A glossary of household money: fixed expenses, emergency fund, payment schedule, early repayment, compound interest, inflation, key rate.
Sources
- Russian Federal Law No. 353-FZ “On Consumer Credit (Loans)”
- Russian Federal Law No. 177-FZ “On Insurance of Deposits in Banks of the Russian Federation”
These materials are based on Russian federal laws and public materials from the Bank of Russia. Rules and the terms of financial products change, and they differ from country to country, so before any important decision check your own country's official sources and the text of your own agreement.