Maximum annual effective interest rate on loan to be reduced to 50 percent
Maximum annual effective interest rate on loan to be reduced to 50 percent

From September 1 of the current year, several financial novelties will be launched on the financial market, which envisages reduction in interest rate and loan expenditure.

Change # 1 – The maximum annual effective interest rate on the loan will be reduced from 100 to 50 percent. High-interest rates will be mainly for short-term and high-risk loans.

Change # 2 – In case of delay, the amount of interest accrued on the loan, penalty and other expenses should be limited to 1.5 of the residual amount. Until now, there was no such regulation, and the maximum limit was not determined.

Change # 3 – In the case of a violation of the terms, the maximum daily loan costs will be reduced.

Change # 4 – The term “black list” is abolished; the rule for the customer’s credit history is changed. In case of delay, they will no longer have a negative credit status. Financial organizations will only check how the borrower paid the loan and assess whether it is possible to give him a new loan. In addition, the work of the credit information bureau falls under the supervision of the National Bank.

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