This law will come into effect 10 days after its signing.
According to the new regulations, lenders are required to provide borrowers with complete information about the cost of the loan and the annual effective interest rate in a standard information sheet before signing the agreement.
The nominal interest rate must not exceed 0.08% per day, and the total charges, including interest, fees, and penalties, are limited to 60% of the loan amount for the entire duration of the loan.
Borrowers have the right to repay their loans at any time without additional fees and penalties; lenders are required to recalculate the payment schedule and interest. Penalties and fines cease 15 days after notifying the borrower about the initiation of collection, with the maximum penalty for the entire restriction period being 10% of the loan amount.
Banks and microfinance organizations are required to assess the financial burden on the borrower. If the debt burden exceeds 60%, the borrower must be notified in writing about the potential risks, and their consent for further lending must be obtained. Refinancing the same consumer loan is possible no more than twice. The transfer of claims to third parties is allowed only with the borrower's consent and in compliance with legislation on credit histories and personal data protection.
It should be noted that this law does not apply to mortgage loans provided for the purchase, construction, or completion of housing. Within six months, the National Bank is required to adapt its regulatory documents in accordance with the new requirements.
