{"id":4762,"date":"2026-08-29T11:14:06","date_gmt":"2026-08-29T08:14:06","guid":{"rendered":"https:\/\/svaroglaw.com\/?p=4762"},"modified":"2026-08-23T18:54:20","modified_gmt":"2026-08-23T15:54:20","slug":"mikrozajm-bilshe-ne-mozhe-rosti-bezmezhno","status":"publish","type":"post","link":"https:\/\/svaroglaw.com\/en\/blog\/mikrozajm-bilshe-ne-mozhe-rosti-bezmezhno\/","title":{"rendered":"Microloans can no longer grow indefinitely: a 1 per cent daily limit and how to recalculate existing debt in 2026"},"content":{"rendered":"

Law No. 3498-IX has capped the maximum daily interest rate on consumer microloans: in 2026, it stands at 1 per cent per day of the loan amount, including all fees and charges. Furthermore, under the Law \u2018On Consumer Credit\u2019, late payment charges may not exceed 15 per cent of the overdue amount, and the total amount of the penalty may not exceed half of the loan amount received. Any charges exceeding these limits are unlawful and subject to recalculation, including through the courts.<\/em><\/p><\/blockquote>\n

Just a few years ago, the story of \u2018borrowing 5,000 UAH and ending up owing 60,000\u2019 was a common occurrence: interest rates charged by microfinance organisations reached 2 per cent per day or more, and late payments multiplied the debt every month. The legislator has gradually dismantled this model: Law No. 3498-IX introduced a maximum daily rate with a phased reduction, and in 2026 it will be set at 1 per cent per day. The National Bank monitors compliance in more than just a formal sense: in December 2025, one of the major MFOs was fined over 2.8 million UAH for exceeding the maximum daily rate and for hidden charges.<\/p>\n

For borrowers, this means two things: new loans have become more predictable, whilst existing debts calculated \u2018the old way\u2019 should be checked and recalculated. Let\u2019s look at how the limits work, how to calculate the legal maximum for your debt, and what to do about claims that exceed it. For a personalised analysis, visit the service page of a solicitor specialising in loans and microloans<\/a>.<\/p>\n

\"Limits<\/p>\n

\"Charges<\/p>\n

Three limits that protect the borrower<\/h2>\n\n\n\n\n\n\n\n
Limit<\/th>\nAmount<\/th>\nBasis<\/th>\n<\/tr>\n<\/thead>\n
Maximum daily interest rate<\/td>\n1 per cent per day of the loan amount (including interest, fees and all other payments)<\/td>\nLaw No. 3498-IX<\/td>\n<\/tr>\n
Late payment penalty<\/td>\nno more than 15 per cent of the overdue payment<\/td>\nPart 2 of Article 21 of the Law of Ukraine \u2018On Consumer Credit\u2019<\/td>\n<\/tr>\n
Total penalty (fines + late payment penalty)<\/td>\nnot exceeding half the amount of the loan received<\/td>\nPart 2 of Article 21 of the Law of Ukraine \u2018On Consumer Lending\u2019<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Example of calculating the statutory maximum: a loan of 10,000 UAH for 30 days. Interest and fees combined \u2014 no more than 1% \u00d7 30 days = 3,000 UAH. The total penalty for late payment \u2014 no more than 5,000 UAH. In other words, even in the worst-case scenario, a demand to \u2018pay back 40,000 for a tenner\u2019 has no legal basis.<\/p>\n

Do the new limits apply to old debt?<\/h2>\n

The 1 per cent rate applies to charges from the moment the relevant phase of the restrictions came into force; it is not applied retrospectively to the entire previous period. However, this does not mean that old debt is untouchable: the limits on late payment charges and aggregate penalties under the Law of Ukraine \u2018On Consumer Lending\u2019 have been in force for some time; hidden fees and payments not specified in the contract are not enforceable; and any terms of the contract that conflicted with the restrictions in force at the time of conclusion are void. In practice, recalculating a typical \u2018inflated\u2019 debt reduces the MFI\u2019s claim by a factor of 2 to 4.<\/p>\n

How to recalculate your debt: step by step<\/h2>\n
    \n
  1. Request a detailed breakdown of your debt<\/strong> from the MFI, showing the principal, interest, fees, penalties and late payment charges, with the dates on which they were charged. The lender is obliged to provide this; refusal is grounds for a complaint to the NBU.<\/li>\n
  2. Check the contract<\/strong>: the actual annual interest rate, the list of all payments, and whether the rate complied with the limits in force on the date the contract was signed.<\/li>\n
  3. Calculate the legal maximum<\/strong> using the limit formulas and compare it with the amount demanded.<\/li>\n
  4. Send the MFI a written request for a recalculation<\/strong> along with your calculation. A significant proportion of companies adjust the amount at this stage \u2014 it is not in their interests to face legal action over unlawful charges.<\/li>\n
  5. Lodge a complaint with the NBU<\/strong> via the \u2018Complaints\u2019 section on the regulator\u2019s website: the NBU imposes fines for exceeding the rate, and a complaint noticeably changes the tone of the negotiations.<\/li>\n
  6. Court<\/strong> \u2014 if the MFI persists: file a counterclaim in response to its claim, or bring your own claim seeking to have the terms of the contract declared invalid and to have the amount recalculated.<\/li>\n<\/ol>\n

    \"Step-by-step<\/a><\/p>\n

    Typical MFI violations identified during an audit<\/h2>\n