This law is designed to enhance the protection of borrowers' rights and create more transparent conditions for lending.
President Sadyr Japarov has signed a new Law "On Consumer Credit," aimed at protecting borrowers' rights and improving the transparency of lending.
The main objective of the law is to prevent excessive debt burden on citizens, combat unfair practices by credit organizations, and foster a culture of responsible lending.
The law establishes rules for providing consumer loans and regulates the terms of concluding, amending, and terminating contracts, defining the rights and obligations of all parties. The document includes provisions that protect borrowers, in particular:
- The total amount of all charges on the loan (including interest, fees, penalties, fines, and damages), even considering restructuring, must not exceed 60% of the amount of the loan received;
- If the borrower's debt burden exceeds 60%, the lender is obliged to notify the borrower in writing about the possible risks and consequences of non-fulfillment of obligations;
- The maximum nominal interest rate on consumer loans is limited to 0.08% per day.
It is important to note that the law does not apply to loans issued for the purchase, construction, or completion of residential real estate secured by collateral, unless otherwise provided by the law itself.
The adoption of this law is expected to enhance transparency in the consumer lending market, which should strengthen the protection of borrowers' rights and create more sustainable and responsible relationships between citizens and financial institutions.
Photo www
