Microloans in Russia to Require Biometric Verification
Officials say the technology is designed to curb fraud and protect borrowers.
Microfinance organizations in Russia will be required to use biometric identification when issuing loans. Starting March 1, 2026, loans issued without biometric verification will fall outside the scope of current legislation.
Verifying passport details and a one-time SMS code will no longer be sufficient to sign an electronic loan agreement. Contracts will require a new identity confirmation format. The rule will apply to microcredit organizations beginning in March 2027.
Fraud Cases Decline
Authorities say the system will help protect citizens from fraud and make online lending more transparent. It will no longer be possible to take out a loan using only someone’s personal data.
As part of broader anti-fraud measures, Russia has also introduced a self-ban on loans, which citizens can activate through Gosuslugi (State Services Portal). Some 22 million people have already used the option. Since the rule was introduced, cases of credit fraud have fallen by 40 percent, and the volume of stolen funds has declined.
