Improving the mechanisms of legal regulation of interest rates in credit agreements with small and medium-sized businesses

Cover Page

Cite item

Full Text

Open Access Open Access
Restricted Access Access granted
Restricted Access Subscription or Fee Access

Abstract

This article examines problematic issues of legal regulation of fixed and variable interest rates in credit agreements with small and medium-sized businesses, analyzes the practice of using ex ante tools to control contractual conditions in terms of the amount of interest rates on loans. The purpose of the article is to study the theoretical provisions and practical problems of the legal regulation of interest rates in credit agreements with small and medium-sized businesses, as well as to formulate scientifically sound proposals aimed at improving the norms of credit legislation. Conclusions. Based on the methodology of economic analysis of law, the author substantiates the position that the normatively established maximum allowable values of floating interest rates should be extended to all categories of small and medium-sized businesses. It is advisable to use similar rules for loan agreements with a fixed interest rate, the amount of which can be adjusted unilaterally by the lender. Among other things, it is necessary to consolidate in the law the obligation of credit institutions to reduce interest rates by a certain amount, depending on the key rate of the Central Bank of Russia. The author believes that it is advisable to oblige credit institutions to inform the borrower, a small and medium-sized business entity, about the final cost of loan payments and its internal structure before concluding a loan agreement, in case the fixed or floating interest rate increases to its maximum allowable regulatory values. Additionally, the author has investigated some problems of commercial loan enforcement. The study of judicial arbitration practice allows us to conclude that currently there are two diametrically opposed approaches regarding the possibility of judicial reduction of the interest rate on a commercial loan. The author proposes to eliminate legal uncertainty by making appropriate additions to article 823 of the Civil Code of the Russian Federation.

Full Text

Restricted Access

About the authors

Evgeniy О. Barashkov

All-Russian public and state movement of children and youth “Movement of the First”

Author for correspondence.
Email: e.barashkov02@bk.ru
ORCID iD: 0000-0002-8838-6969
SPIN-code: 2663-5003

legal adviser

Russian Federation, Moscow

References

  1. Harutyunyan A.A. Legal regulation of bank lending to business entities in the Russian Federation: specialty 12.00.03 «Civil law; family law; business law; private international law»: dissertation for the degree of Candidate of Law / Arutyunyan Armenak Araevich : All-Russian State Tax Academy of the Ministry of Finance of the Russian Federation. Moscow, 2012, 210 p.
  2. Gartina Yu.A. Problems of legal regulation in the field of bank lending. Nauka. Society. The State. 2021. Vol. 9. No. 3. Pр. 16–25. (In Rus.).
  3. Egorova A.B. Conclusion and execution of a loan agreement in business activities under the legislation of the Russian Federation: specialty 12.00.03 «Civil law; family law; business law; private international law»: dissertation for the degree of Candidate of Law / Egorova Anastasia Vladimirovna: Samara State University. Samara, 2013, 234 p.
  4. Ivanov O.M. The cost of a loan: legal regulation. Moscow: Infotropic Media, 2012. 672 p.
  5. Karapetov A.G. Economic analysis of law. Moscow: Statut, 2016. 528 p.
  6. Mikheeva I.E., Ostapenko I.A. The interest rate under the credit agreement in the light of judicial practice. Legal Paradigm. 2017. Vol. 16. No. 3. Pр. 90–95.
  7. Sevastyanova Yu.V. Change in the interest rate on a loan to an entrepreneur: it is impossible to raise it. Bank Lending. 2023. No. 6. Pр. 89–95. (In Rus.).
  8. Sizemova O.B. On most pressing matters of bank financing. Banking Law. 2017. No. 2. Pр. 27–33. (In Rus.).
  9. Sinitsyn S.A. Floating interest rates on monetary obligations: Market demands and relevant legal regulation tasks. Business Law. 2022. No. 4. Pр. 54–62. (In Rus.).
  10. Sorokina E.A. Features of legal regulation of contractual legal relations in the field of bank lending to small and medium-sized businesses. Economic problems and legal practice. 2023. Vol. 19. No. 6. Pр. 129–137. (In Rus.).

Supplementary files

Supplementary Files
Action
1. JATS XML
2. 1. The share of small and medium-sized enterprises in the gross domestic product of the Russian Federation, in current prices, percent.

Download (75KB)
3. Fig. 2. Turnover per enterprise of the small and medium-sized business sector in millions of rubles.

Download (80KB)
4. Fig. 3. Overdue loans granted to small and medium-sized businesses in rubles, mln rubles as of 01.06 of each year.

Download (92KB)
5. 4. The number of employees in small and medium-sized enterprises as of 10.07 each year.

Download (116KB)
6. Fig. 5. The number of employees at microenterprises as of 10.07 each year.

Download (97KB)
7. Fig. 6. Total debt (billion rubles) for all loans with a floating (variable) interest rate as of 01.06 of each year.

Download (73KB)

Copyright (c) 2025 Yur-VAK

License URL: https://www.urvak.ru/contacts/