Bank interest is nothing more than a payment for the use of borrowed funds. in cash. In civil circulation, the most famous cases of using interest are the fee for and the fee for the deposit. In both cases, there are two entities in the relationship, one of which is always a banking institution, which, based on certain methods of economic calculations, determines the amount of bank interest for a particular type of operation.

Types of bank interest

In practice banking There are several types of interest:

• loan (credit),
• deposit,
• discount,
• accounting.

Loan interest - this is the amount that is charged to the borrower for the use of credit funds. Deposit interest is essentially the same as loan interest, but in this case the borrower is a banking institution that pays you a reward in the form of this same deposit interest for using your money.

Discount percentage refers to the size of the discount from any amount in monetary transaction. The discount rate is the rate determined by the Central Bank at which this institution issues loans to other banks.

Calculation of bank interest

In financial practice, it is customary to calculate bank interest in annual terms. This means that if the bank indicates that the rate of funds accepted for deposit is, for example, 10% per annum, you will receive an amount greater by these 10% accrued during the year. If you need to calculate how much it will be received per month or per day - just divide the interest rate by the period of time you need. To find out how much you will receive per month, you need to divide 10% by 12 (the number of months in a year). And to calculate the interest per day, it will be necessary to divide the interest rate by 365 (the number of days in a year).

Simple and compound bank interest

Bank interest can be calculated in two ways, called simple and compound interest. In the first case, it is understood that the amount of the loan (deposit) is always taken as the basis for settlements during the term of the contract. Compound interest takes into account that in each subsequent period the amount on which interest is calculated increases by the amount of interest received in the previous period.

Traditionally, deposits on which the bank charges compound interest are considered to be more profitable. For loans, the situation is reversed. Profitable interest is calculated not on the entire amount of the loan, but on the balance of funds not returned to the bank.

Bank interest rate calculation

Before signing a loan agreement, it is desirable to understand what amounts will have to be paid, so the correct calculation of the bank account is important. interest rate. Many online banks offer a calculator for these calculations on their websites, but in fact it is not so easy to apply it, but it is possible to make an approximate calculation.

Many methods for calculating the bank interest rate are complex and require mathematical knowledge. So let's focus on more simple ways. If you add up all the payments proposed in the list, then you can calculate the approximate percentage that will have to be paid for borrowed funds:

1. loan interest;
2. all bank commissions (for consideration of an application, opening, servicing an account, and so on);
3. all life insurance services and others;

For a correct calculation, one should take into account various circumstances that may arise at the time of using borrowed money, for example, early repayment, penalties, fines, and much more.

Some bank customers, on the contrary, trust a credit institution to store their finances. The bank pays interest for this, its size depends on many factors.

Interest rate in brokerage companies

The brokerage company is an intermediary between the seller and the buyer. If earlier only banks were engaged in savings operations, now similar services in other institutions are becoming more and more popular. The client's assets in a brokerage house can also be of a savings nature. The broker can use free funds on the client's deposit for his own purposes and pay the client for it.

Interest in brokerage companies change frequently, so they are calculated daily and deposited at the end of the month. Brokers offer different interest rates. If the client concludes many transactions, then the option with a reduced interest rate will be convenient for him (Commission - 0.015%, SWAP - 1 pip, Interest rate - 3%). For strategic investors, a high percentage is important, since deals are rarely made (Commission - 0.03%, SWAP - 0 pip, Interest rate - 6%.). The client is obliged to make at least one transaction in order for the interest rate in brokerage companies to begin to be credited to the deposit.

When lending, there are several features of bank interest

The borrower pays an interest rate to a credit institution; today, when lending, there are several features of bank interest:

1. loan (receiving profit by the bank from the client for the use of money);
2. deposit (paid by the bank to the client for the opportunity to use his money);
3. discount rate (the Central Bank rate at which loans are issued to other banks);
4. discount (% for the risks associated with the issuance of a loan).

Each of them is designed for certain functions: savings, regulatory and redistributive. The calculation of the bank's interest rate is influenced by many different factors.

What determines the amount of bank interest

Currently, there is a single formula for calculating the interest rate on a deposit account. It is necessary to understand what the size of bank interest depends on and take into account that various factors can adjust it:

M \u003d D * (1 + r / 100 * t / 360).

M - the amount received by the client at the end of the investment period;

D - deposit amount;

r is the bank's interest rate;

t is the number of days for which the client entrusts his finances to the bank.

In the financial world, it is believed that each month has 30 days.

Example: put 100,000 rubles in the bank at 3% per annum for a period for 6 months.

100000 * (1 + 3%/100 * 180/360) = 100000 * (1+ 0,03 * 0,5) = 100000 * 1,015= 101500

The proposed formula is only suitable for, the interest on which is accrued once a year. If interest on a deposit is credited several times a year, for example, every month, then you will have to calculate interest using a complex banking formula:

M = D * (1 + r/100*30/360)^(360/30).

Types of banking risks

The types of risks of financial institutions are divided into general and banking, it is rather difficult to distinguish between them. In the process of functioning, the enterprise faces various problems. In specialized literature, types of banking risks are grouped according to financial transactions:

1. banking risk (this includes risks associated with the activities of the bank and general, depending on external influences);
2. credit risk (rises due to overdue debts of customers or enterprises lending to the bank);
3. currency risk (associated with changes in the exchange rate);
4. interest rate risk (fluctuation in the interest rate forces the bank to pay increased interest for the use of money or to receive less income from loans granted);

There are risks in any enterprise, so it is important for the bank not to avoid them, but to anticipate and, as a result, reduce the threat to a minimum.

Not all loans and credits are the same. Understanding the principles of calculating monthly loan payments, including the total amount of interest that you will eventually have to pay for using borrowed funds, is very helpful in choosing the ideal loan terms for you. Calculating the exact amount requires some calculations using a fairly complex formula, but this process can be simplified if you use functionality Excel.

Steps

Studying basic information about the planned loan

Enter the details of the proposed loan in credit calculator to quickly calculate interest payments online. Calculation of interest payments is not reduced to the simplest calculations. But, fortunately, a quick web search for "loan calculator" will allow you to easily calculate the regular amount of annuity payments on a loan, if you know the initial loan terms that should be entered into the calculator.

Find out the interest rate on a loan before taking out a loan. The interest rate determines the cost of using borrowed funds. It also underlies the calculation of the total amount of interest that you pay to the lender for the entire term of the loan. You want the interest rate to be as low as possible. Even a 0.5% difference can represent a huge amount in terms of money. If you choose to pay smaller amounts on your loan, you may need to extend the loan term, accept a higher interest rate (because of the increased risk to the lender) and pay more interest, but thereby reduce the financial burden on your monthly budget. This lending option is preferred by people with lower savings and those whose salary is highly dependent on bonuses and commissions. However, we recommend that you try to find a loan option in which the interest rate on the loan will not exceed 10%. Currently, in Russia, interest on various types of loans, on average, fluctuates within the following limits:

Find out how often interest is charged on a loan. From a technical point of view, the frequency of interest calculation determines the amount of interest paid to the lender. The more often interest is compounded, the more you need to pay in the end, as you will actually have less time to pay off the interest and prevent it from growing. For example, if you took out a loan in the amount of 100,000 rubles at a preferential rate of 4% per annum, then the total amount of loan payments may turn out to be different with different interest rates:

• with annual accrual- 110412.17 rubles;
• on a monthly basis- 110512.24 rubles;
• with daily charge- 110521.28 rubles.

1. Use longer loan terms to make smaller monthly payments, given that you end up paying more in the end. The term of the loan is the period during which you agree to repay the loan. Again, loan terms depend on the specific types of loans, and you should choose a loan option for yourself where the repayment terms suit your needs. If you are not sure that you will be able to pay off a shorter-term loan with a higher monthly payment, you can always choose a longer loan with lower monthly payments but a higher total amount. A longer loan term usually means an increase in the total amount of interest paid, but allows for lower monthly loan payments. Let's say that you take out a car loan in the amount of 200,000 rubles at 5% per annum. The amount of monthly annuity payments for different loan terms will be as follows:

   Calculating Interest Payments Manually

   1. Learn the compound interest formula. Although there are a huge number of online calculators for calculating payments and interest on loans, understanding the principle of these calculations plays an important role in making an informed decision on making a loan. To calculate payments and interest on a loan, you must use a mathematical formula that looks like this: Payment = Principal ∗ i (1 + i) n (1 + i) n − 1 (\displaystyle (\text(Payment))=(\text(Principal))*(\frac (i(1+ i)^(n))((1+i)^(n)-1))) ,

      • where "i" is the interest rate and "n" is the number of payments on the loan.
      • Like most others financial formulas, this formula only outwardly looks so intimidating, but in fact, calculations on it are not so complicated. Once you understand the concept of plugging your data into the formula, actually calculating your monthly payments is a breeze.

   2. Adjust your interest rate to the frequency of your loan payments. Before substituting the numbers in the formula, adjust the interest rate "i" for the frequency of payments made on the loan.

      Determine the total number of loan payments. To find out what number to substitute in the formula instead of "n", you need to calculate the total number of loan payments that you will need to make over the entire loan term.

      Calculate the amount of the monthly annuity payment. To find out the amount of the monthly payment on the loan, you just have to substitute the data into the formula. The upcoming calculations may seem complicated, but if you act step by step, you will quickly cope with the calculations and find out the result. The following is a step by step calculation of the monthly payment amount for the above example.

      • Continuing with the example mentioned above, let's assume that the initial loan amount is 100,000 rubles. In this case, the formula with the substituted data will look like this: 100000 ∗ 0 , 00375 (1 + 0 , 00375) 3 60 (1 + 0 , 00375) 3 60 − 1 (\displaystyle 100000*(\frac (0.00375(1+0.00375)^(3)60) ((1+0.00375)^(3)60-1)))
      • 100000 ∗ 0 , 00375 (1 , 00375) 3 60 (1 + 0 , 00375) 3 60 − 1 (\displaystyle 100000*(\frac (0.00375(1.00375)^(3)60)((1+ 0.00375)^(3)60-1)))
      • 100000 ∗ 0 , 00375 (3 , 84769....) (1 + 0 , 00375) 3 60 − 1 (\displaystyle 100000*(\frac (0.00375(3.84769....))((1 +0.00375)^(3)60-1)))
      • 100000 ∗ 0 , 01442..... (1 + 0 , 00375) 3 60 − 1 (\displaystyle 100000*(\frac (0.01442.....)((1+0.00375)^(3 )60-1)))
      • 100000 ∗ 0 , 01442..... (1 , 00375) 3 60 − 1 (\displaystyle 100000*(\frac (0.01442.....)((1.00375)^(3)60-1 )))
      • 100000 ∗ 0 , 01442..... 3 , 84769..... − 1 (\displaystyle 100000*(\frac (0.01442.....)(3.84769.....-1) ))
      • 100000 ∗ 0 , 01442..... 2 , 84769..... (\displaystyle 100000*(\frac (0.01442.....)(2.84769.....)))
      • 100000 ∗ 0 , 00506685..... = 506 , 69 (\displaystyle 100000*0.00506685.....=506.69)
      • RUB 506.69- it's your monthly payment on credit.

   3. Calculate the total interest on the loan. Now that you know the amount of monthly payments, you can find out the amount of interest that you will need to pay for the entire term of the loan. Multiply the total number of payments by the amount of monthly payments. Then subtract the original loan amount from the result.

      • Using the above example, you would multiply 506.69 by 360 and you would get 182408 rubles. This is the total amount of payments on the loan for its entire term.
      • Subtract the original $100,000 loan from that amount and you're left with 82408 rubles. The last value reflects the amount of interest that you will need to pay for using the loan.

   Calculating interest payments using Excel

   1. Enter the principal amount of the loan, its term and the interest rate in one column of the Excel spreadsheet. If you enter information about the loan amount, loan term and interest rate into separate cells of the Excel table, the program will help you make further calculations of monthly payments. For convenience, the following example will be considered in the text.

      • The loan amount is 100,000 rubles. The loan term is 30 years and the annual interest rate is 4.5%.

   2. Enter the value of the original loan amount minus. Excel should treat this figure as your debt. To do this, it should be made negative and, in addition to the minus and the numbers themselves, no more signs denoting the currency should be entered.

      • -100000 - the principal amount of the loan.

   3. Specify the number of loan payments. If you wish, you can specify the loan term in years without converting it into a number of months, but then the calculation will be made according to the annual interest calculation, and not monthly. And since loans are usually repaid monthly, you need to multiply the term of the loan by 12 months to calculate the total number of monthly payments. Write the result in the box below.

      • -100000 - the principal amount of the loan.
      • 360 - the number of loan payments.

   4. Convert the interest rate according to the number of loan payments per year. In this example, we know the annual interest rate, which is applicable to the whole year. However, loan payments must be made on a monthly basis, so you need to know the monthly interest rate. Since the 4.5% rate corresponds to 12 months, simply divide it by 12 to calculate the monthly interest rate. Don't forget to enter the percentage as a decimal at the end of your calculations.

      Use the "=PMT()" function to calculate annuity payments on a loan. Excel contains a ready-made formula for calculating monthly interest payments on a loan. All you need to do is enter your details to make the payment. Click on an empty table cell, then find the formula bar to manually enter the formula into the cell. It is located on the toolbar directly above the table to the right of the button labeled "fx". Click on a line and start typing a function into it "=PLT("

   5. Enter the function arguments in the correct order. In brackets, indicate the data necessary for the calculation of annuity payments, separating them with semicolons. In the example above, after the function name, you need to enter the following: "(interest rate; number of periods; initial loan amount; 0)".

      • For the example above, the full entry in the cell should look like this: "=PMT(0.00375;360;-100000;0)".
      • The last argument must be zero. He says that by the end of all payments, the balance of settlements should be equal to zero.
      • Don't forget to close the parentheses after entering the arguments.

   6. Press the "Enter" key to display the result of the calculation of annuity payments in the cell. If you correctly entered all the arguments of the function, then the result of the calculation will appear in the corresponding cell of the table.

      • In our example, this will be the sum RUB 506.69. This is the amount of the monthly payment on this loan.
      • If you see a "#NUMBER!" error in a cell or other incorrect result, it means that you entered the function or its arguments incorrectly. Double-check the input line and try to correct the shortcomings.

   7. Calculate the total loan payments by multiplying the monthly payment by the total number of payments. To find out the total amount of payments on the loan, you only need to multiply the monthly payment by the number of payments for the entire term of the loan.

      • In this example, multiplying 506.69 by 360 gives 182408 rubles. This is the total amount of payments on the loan for the entire term of the loan.

   8. Calculate the total interest by reducing the total loan payments by the original loan amount. If you want to know how much interest you will need to pay for using a loan, you need to perform a simple subtraction operation. Reduce your total loan payments by the original loan amount.

      • In this example, you need to subtract 100,000 rubles from 182,408 rubles. As a result you will get 82408 rub. This is the total amount of interest for the entire term of the loan.

   Calculation table for automatic calculation of interest payments

   The table below explains how to use Excel, Google Sheets, or another spreadsheet program to calculate interest payments for any of the parameters. Just fill it in with your own data. Please note that where indicated F x = (\displaystyle Fx=), input should be done through the formula input line above the table to the right of the "Fx" button. Combinations of letters and numbers (A2, C1, and so on) correspond to the designation of specific cells in Excel program and the Google Sheets app.

   Example of annuity payment calculation table

   	A	B	C	D
   1	[Principal Loan]	[Total number of payouts]	[Annual interest rate]	[Monthly interest rate]
   2	With a minus loan amount (-100000)	Total number of payments in months (360)	Annual interest rate as a decimal (0.05)	Monthly interest rate (divide the annual rate by 12)
   3			Monthly payment	FX=PMT(D2;B2;A2;0). NOTE: The last argument of the formula is zero.
   4			Total payout	FX=PRODUCT(D3;B2)
   5			The total amount of interest on the loan	FX=SUM(D4;A2)

   • Understanding the principle of calculating loan payments allows you to filter out unsuitable loan options and choose exactly the conditions that really suit you.
   • If you have a fluctuating income, it is likely that the best choice it can become a loan not necessarily with the lowest rate, but with a longer loan term and less frequent and not so large payments, despite the fact that in total you will have to pay more interest on it.
   • If you have a good regular income that leaves you with a lot of free cash at your disposal, it would probably be wiser to take out a loan with favorable rate, with a shorter term and higher monthly payments, as this will reduce the total amount of interest for the entire loan term.

   Warnings

   • Often, loans with a minimum interest rate are not the most profitable in terms of the total amount of payments. By knowing how to calculate loan payments, you can quickly estimate the real cost of using borrowed money, which you will eventually have to pay.

   Sources

   1. http://www.interest.com/home-equity/calculators/monthly-payment-calculator/
   2. http://www.investopedia.com/terms/i/interestrate.asp
   3. https://www.sravni.ru/avtokredity/calculator/?productType=15&isPeriodChanged=¤cy=1&IsInitialAmountInPercents=0&IsRetirees=false&CreditSubTypes=0&amount=1000000&initialAmount=300000&period=3-0-0&solvencyProof=127&bankGroupId=0&showAll=false&selectedBankId=false&orderBy=0&term=

Microfinance organizations (MFIs) have limited the accrual of interest on microloans.

Limitation of interest on microloans

On January 1, 2017, articles 12 and 12.1 of the Federal Law "On Microfinance Activities and Microfinance Organizations" dated 02.07.2010 N 151-FZ came into force, which introduces a ban on recovering from borrowers Microfinance organizations (MFIs) unreasonably high interest consumer microloans. What is the reason for limiting interest on microloans? The reason is as simple as the world - Microfinance organizations (MFIs), striving to obtain excess income, issue microloans instantly and practically without checking the client's solvency.
Microloan- This is a small loan that is provided for a short period of time, and as a rule, without confirmation and verification of the solvency of the borrower.

In article 2 of the Federal Law N 151-FZ of 07/02/2010, the concept of "microloan" is described as follows:

3) microloan - a loan provided by the lender to the borrower on the terms and conditions stipulated by the loan agreement, in an amount not exceeding size limit obligations of the borrower to the lender for the principal debt, established by this Federal Law;

According to Federal Law No. 151 of July 2, 2010, the amount of a microloan issued to one borrower cannot exceed one million rubles. The actual issuance of microloans in the amount of up to 30 - 50 tr. is issued only with a passport and naturally without checking the solvency of the client.

Federal Law No. 151 of July 2, 2010 No. There are two types of restrictions on the accrual of interest by Microfinance Organizations (MFIs) on issued consumer microloans, namely:

1. Threefold limitation of accrual of interest under a consumer microloan agreement.
2. Termination of accrual of interest on overdue loans as soon as the interest reaches twice the amount of the outstanding part of the debt.

The Bank of Russia provides an explanation of the essence of the restrictions imposed by Federal Law No. 151, which boils down to the following:

1. From January 1, 2017, a three-fold restriction on the calculation of interest under a consumer microloan agreement entered into starting from this date comes into force.

If the repayment period under the agreement does not exceed one year, microfinance organizations (MFIs) are not entitled to charge interest to the borrower - an individual after their amount reaches three times the loan amount.

So, for example, with a loan of 5,000 rubles, the debt of the borrower at no time can exceed 20,000 rubles. This amount includes:

• loan amount of 5000 rubles
• accrued interest in the amount of 15,000 rubles (5,000 rubles x 3).

The Bank of Russia draws the attention of borrowers to the fact that the limitation on the amount of interest does not apply by law to penalties (fines, penalties), as well as payments for services provided to it for a separate fee.

This is how it is stated in the Federal Law of 02.07.2010 N 151-FZ (as amended on 03.07.2016) "On microfinance activities and microfinance organizations" (as amended and supplemented, entered into force on 01.01.2017) :

Article 12
1. A microfinance organization is not entitled to:
9) to accrue to the borrower - an individual interest under a consumer loan agreement, the period of repayment of a consumer loan for which does not exceed one year, with the exception of a penalty (fine, penalty fee) and payments for services provided to the borrower for a separate fee, if the amount accrued for the interest agreement will reach three times the amount of the loan. The condition containing this prohibition must be indicated by the microfinance organization on the first page of the consumer loan agreement, the term of repayment of the consumer loan for which does not exceed one year, before the table containing the individual terms of the consumer loan agreement; (As amended by the Federal Law of July 3, 2016 N 230-FZ)

2. The second limitation concerns the delay in the repayment of a short-term (up to one year) consumer microloan: after the occurrence of a delay, the MFI can accrue interest to the debtor only on the remaining (outstanding) part of the principal amount, however, the accrual will stop as soon as the interest reaches a double amount of this amount.

At the same time, the MFI will be able to start accruing interest again only after the borrower partially repays the loan and (or) pays the interest due.

The penalty (fines, penalties) should be charged only on the part of the principal amount not repaid by the borrower.

So, for example, if the outstanding part under the overdue contract is 5,000 rubles, the amount charged from the borrower will be equal to 15,000 rubles, which includes the amount of overdue debt - 5,000 rubles and accrued interest - 10,000 rubles (5,000 rubles x2).

Each MFI is required to place information about these restrictions on the first page of a short-term consumer loan agreement before a table with individual terms of the agreement.

Federal Law No. 151-FZ of July 2, 2010 "On Microfinance Activities and Microfinance Organizations" (as amended and supplemented) states this restriction as follows:

Article 12.1. Features of the calculation of interest and other payments in case of delay in fulfilling loan obligations (introduced by Federal Law No. 230-FZ of July 3, 2016)
1. After the occurrence of a delay in fulfilling the obligation of a borrower - an individual to repay the loan amount and (or) pay interest due, a microfinance organization under a consumer loan agreement, the term for repayment of a consumer loan for which does not exceed one year, has the right to continue accruing interest to the borrower - an individual only on part of the principal amount not repaid by him. Interest on the portion of the principal outstanding by the borrower continues to accrue until the total amount of interest payable is equal to twice the amount of the outstanding portion of the loan. A microfinance organization is not entitled to accrue interest for a period of time from the moment the total amount of interest payable is reached in an amount equal to twice the amount of the outstanding part of the loan, until the borrower partially repays the loan amount and (or) pays the interest due.

2. After the occurrence of a delay in fulfilling the obligation of a borrower - an individual to repay the loan amount and (or) pay interest due, a microfinance organization under a consumer loan agreement, the term for repayment of a consumer loan for which does not exceed one year, has the right to charge a borrower - an individual a penalty (fines, fines) and other measures of liability only for the part of the principal amount not repaid by the borrower.

3. The conditions specified in parts 1 and 2 of this article must be indicated by the microfinance organization on the first page of the consumer loan agreement, the consumer loan repayment term for which does not exceed one year, before the table containing the individual terms of the consumer loan agreement.

Sources:

• The message of the Bank of Russia dated 01.01.2017 - “The accrual of interest on short-term microloans is limited”
• the federal law dated 02.07.2010 N 151-FZ "On microfinance activities and microfinance organizations" (with amendments and additions)
• Federal Law No. 230-FZ of July 3, 2016 “On the Protection of the Rights and Legitimate Interests individuals when carrying out activities to return overdue debts and on amendments to the Federal Law "On MICROFINANCE ACTIVITIES AND MICROFINANCE ORGANIZATIONS"

How to correctly prescribe in the employment contract the amount of the percentage allowance (for example, 10%) for work in areas equated to the districts of Kr. North.

Answer

In the employment contract, you can specify: "Percentage bonus to wages for work experience in the regions of the Far North is paid in accordance with the law. This is explained by the fact that the amount of the allowance is regulated by law and cannot be changed by an employment contract.

You can also specify: "For the length of service in the regions of the Far North, a percentage bonus to wages in the amount of 10% is paid." At the same time, the amount of the percentage premium must correspond to the amount established by law. Also, when the size of the percentage surcharge changes, it will be necessary to conclude an additional agreement to employment contract(cm. ).

For details on this, see the materials in the rationale.

The rationale for this position is given below in the materials of "Systems Lawyer" .

« How to determine the size of the percentage allowance for work in the Far North

The amount of the percentage allowance for work in the Far North depends on:

• from the area in which the employee works;
• from the age of the employee;

• from the duration of his work (residence) in the region.

This follows from the provisions of Article 317 of the Labor Code of the Russian Federation, paragraph 16 of the Instruction approved by order of the Ministry of Labor of the RSFSR of November 22, 1990 No. 2, paragraph 6 of the Instruction approved by order of the Ministry of Labor of the RSFSR of November 22, 1990 No. 3, the order of the Government of the RSFSR of December 26 1991 No. 199-r.

For example, in the regions of the Far North, during the first six months of work, the allowance is not paid. In areas equated with the regions of the Far North, salary supplements begin to be paid after a year of work (clause 16 of the Instruction approved by order of the Ministry of Labor of the RSFSR dated November 22, 1990 No. 2). See the table for more details on interest rates.

Employees under the age of 30 are entitled to a higher allowance. However, in order to take advantage of the increased percentage allowance, they need to live in the corresponding region for at least one year (clause 16 of the Instruction approved by order of the Ministry of Labor of the RSFSR dated November 22, 1990 No. 2).

Special rules for the calculation of interest surcharges may be established in industry agreements. However, such agreements are obligatory for commercial organizations only if they join them (Article 48 of the Labor Code of the Russian Federation). For example, employees coal industry under 30 years of age are entitled to a preferential procedure for calculating the allowance. The right to an allowance, in contrast to the general procedure, they have from the first day of work. However, for this, such employees must live in the regions of the Far North (areas equivalent to them) for at least five years. This is stated in paragraph 3.2.9 of the Federal Industry Agreement on the Coal Industry for 2010-2012.

When charging a higher percentage surcharge, observe the general limit on its maximum size in this region. That is, in the regions of the Far North, it is impossible to charge an allowance in the amount of more than 100 or 80 percent of earnings. And in areas equated to the regions of the Far North - more than 50 percent (for more details, see table).

Such rules are provided for in paragraph 16 of the Instruction approved by order of the Ministry of Labor of the RSFSR dated November 22, 1990 No. 2, and paragraph 6 of the Instruction approved by order of the Ministry of Labor of the RSFSR dated November 22, 1990 No. 3.

Experience for the allowance

Does the allowance for work in the regions of the Far North depend on the length of service of the employee in this region

Percentage allowances depend not only on the region and age of the employee, but also on his length of service in this region (Article 317 of the Labor Code of the Russian Federation). The seniority that gives the right to receive allowances is determined in calendar days of work in the corresponding region on an accrual basis. Breaks in work and their duration, as well as the reasons for termination of employment relations, do not affect the procedure for calculating the length of service. This follows from the provisions of paragraph 1 of Decree of the Government of the Russian Federation of October 7, 1993 No. 1012 and the current judicial practice, the general approach of which is set out in the review of the Supreme Court of the Russian Federation dated February 26, 2014.

The length of service for receiving a percentage allowance is determined by work book or according to certificates issued by organizations * (clause 33 of the Instruction approved by order of the Ministry of Labor of the RSFSR dated November 22, 1990 No. 2, clause 28 of the Instruction approved by order of the Ministry of Labor of the RSFSR dated November 22, 1990 No. 3).

For shift workers working in the regions of the Far North and equivalent areas, the length of service includes:

• actual time (calendar days) of watch in the regions of the Far North and areas equated to them;
• actual days on the way (provided by the schedule of work on shift) from the place of collection (location of the organization - the organizer of the work) to the place of work and back.

Such rules are established in article 302 of the Labor Code of the Russian Federation.

How to calculate the allowance for work in the regions of the Far North

Calculate the allowance from the day the employee becomes entitled to it. For part-time workers working in the organization, accrue percentage bonuses for work experience in the regions of the Far North in the same way as for other employees (part 3 of article 285 of the Labor Code of the Russian Federation).

Charge the bonus on the actual earnings of the employee, including remuneration for the length of service and on the basis of the results of work for the year, provided for by the remuneration system. Do not charge extra*:

• on the district coefficient;
• for payments on average earnings, for example, vacation pay, payment for a business trip, etc.;
• on the financial assistance;
• for payments that are of a one-time incentive nature and are not determined by the wage system (bonuses for anniversaries, holidays, etc.).

This approach is confirmed by paragraph 19 of the Instruction approved by Order of the Ministry of Labor of the RSFSR of November 22, 1990 No. 2, paragraph 7 of the Instruction approved by Order of the Ministry of Labor of the RSFSR of November 22, 1990 No. 3, paragraph 1 of the clarification approved by the Decree of the Ministry of Labor of Russia of September 11, 1995 No. 49, and decisions of the Supreme Court dated December 1, 2015 No. AKPI15-1253 and July 17, 2000 No. GKPI00-315.

If bonuses are paid based on the results of work for any period, the amount of this bonus for the calculation of allowances is distributed over the months of the reporting period in proportion to the hours worked. Such a distribution is necessary for the correct calculation of the northern allowance on the amount of the premium. When calculating the allowance for the amount of the premium for the quarter, half year, etc., be guided by the following. Apply the amount of the allowance that is set for the month of the reporting period to which the amount of the bonus relates.

This procedure for calculating the allowance is established by paragraph 19 of the Instruction approved by order of the Ministry of Labor of the RSFSR dated November 22, 1990 No. 2, and paragraph 7 of the Instruction approved by order of the Ministry of Labor of the RSFSR dated November 22, 1990 No. 3.

The essential terms of the loan agreement include, in particular, the interest rate on the loan. Its size and procedure for determining, including depending on changes in the conditions provided for in the loan agreement, as a rule, are established by the creditor bank by agreement with the borrower (clause 1 of article 819 of the Civil Code of the Russian Federation; part 1 of article 29, part 2 Article 30 of the Law of December 2, 1990 N 395-1; paragraph 4 of part 9 of Article 5 of the Law of December 21, 2013 N 353-FZ).

In this article, we will consider the limitation of the interest rate under the contract consumer credit. Note that the above applies equally to interest under consumer loan agreements, except for the provisions that are specifically stipulated in the material.

Interest rate on consumer credit

The interest rate under a consumer loan agreement is determined using one of the rates (part 1, article 9 of Law N 353-FZ):

• fixed rate;
• variable rate, the value of which changes depending on the change in the variable value provided for by the contract.

Under a loan agreement concluded with a citizen borrower, the lender, as a rule, cannot unilaterally shorten the term of this agreement, increase the amount of interest or change the procedure for determining them. In terms of consumer credit, the bank has the right only to unilaterally reduce the constant interest rate (part 4 of article 29 of Law N 395-1; part 16 of article 5 of Law N 353-FZ).

The consumer loan agreement, which provides for the obligatory conclusion of an insurance agreement by the borrower, may contain a condition on the right of the lender, in case the borrower fails to fulfill this obligation for more than 30 calendar days, to decide to increase the interest rate on the issued loan. Under such circumstances, the increase in the rate is limited to the level of the rate at the time of the conclusion of the contract for similar loan agreements, but without the obligatory conclusion of an insurance contract, as well as the rate at the time the creditor decides to increase its size (part 11, article 7 of Law N 353-FZ).

Limiting the rate on consumer credit

The legislation establishes a limit on the total cost of a consumer loan (hereinafter referred to as TIC), which affects the interest rate on it. So, at the time of the conclusion of the contract, TIC cannot exceed by more than 1/3 its average market value calculated by the Bank of Russia for the corresponding calendar quarter. In the event of a significant change in market conditions, the Bank of Russia may establish a period during which this restriction is not applicable (Part 11, Article 6 of Law N 353-FZ).

Note. The Bank of Russia quarterly calculates the average market value of TIC as a weighted average of at least one hundred largest lenders in a particular category of loan or at least 1/3 of the total number of lenders providing a particular category of loans ( Part 10 Art. 6 of Law N 353-FZ).

The average market value of TIC is published by the Bank of Russia on a quarterly basis. Thus, under consumer loan agreements concluded in the second quarter of 2017, credit institutions for the purchase of cars with a mileage of 0 to 1,000 km (with a pledge of a car), this value is 15.768%, and the maximum value of the TIC is 21.024% (part 8 of article 6 of Law N 353-FZ; Information from the Bank of Russia “On average market values the full cost of consumer credit (loan)”).

Interest rate under a microloan agreement concluded with a microfinance organization

Let us note a peculiarity in relation to interest on microloans provided not by a bank, but by a microfinance organization (hereinafter referred to as MFO).

If a short-term (up to a year) consumer microloan agreement has been concluded with an MFI since 01/01/2017, the amount of interest on it is limited to three times the loan amount. For contracts concluded in the period from 29.03.2016 to 31.12.2016, such a prohibition is valid if the amount of accrued interest and other payments under the contract (with the exception of the penalty and payment for Additional services) is four times the amount of the loan (clause 9, part 1, article 12 of the Law of July 2, 2010 N 151-FZ; part 7 of article 22 of the Law of July 3, 2016 N 230-FZ;