The purpose of the document is to adapt existing norms to the laws "On Consumer Credit" and "On Banking Relations," as well as to enhance the level of protection for borrowers.
As part of the proposed changes, new obligations are introduced for banks, microfinance organizations, and credit unions. In particular, creditors will be required to calculate the borrower's debt burden when providing consumer loans.
If the borrower's debt burden exceeds 60 percent, they must be informed in advance about the potential risks of non-fulfillment of obligations and the consequences.
There is also a plan to require the disclosure of the total cost of the loan, including all fees, interest, and penalties, in an accessible and standardized form.
One of the key aspects of the project is the limitation of the total amount of charges on the loan: it should not exceed 60 percent of the loan amount, even in the case of restructuring.
In addition, it is proposed to limit the possibility of refinancing a single loan to two times.
Additionally, borrowers will have the right to refuse imposed insurance when taking out a loan.
The National Bank also plans to strengthen control over financial institutions, including measures to address violations of norms in the field of consumer lending.
Within the framework of the new document, the regulation of Islamic financing will be organized: relevant norms will be integrated into general provisions, and outdated acts will be repealed.
