Kyrgyz

Kyrgyzstan’s National Bank Plans to Update Online Lending Regulations

National Bank of Kyrgyzstan Proposes Changes to Online Lending Regulations

The National Bank of Kyrgyzstan has put forward a draft resolution aimed at expanding the structure of online lending and reducing the risk of fraud. This move comes in response to the growing fraudulent activity in the digital lending sector.

Previously, the National Bank had set limits on online loans to mitigate credit risks, with different limits based on the type of electronic signature used. However, these limits were hindering the development of digital lending in the country.

In an effort to combat fraudulent activities more effectively, the National Bank introduced a “cooling-off period” in November 2024. This period allows borrowers time to reconsider their decision and cancel the transaction in case of suspected fraud.

The proposed changes in the new resolution include increasing the maximum amount of an online loan to 500,000 soms, specifically for targeted loans where funds are transferred directly to the seller of goods or services. This approach is expected to stimulate small and medium-sized businesses, ensure targeted use of funds, and minimize risks by increasing transaction transparency.

Additionally, the draft resolution specifies minimum “cooling-off period” terms for online loans not related to targeted purchases, with varying time intervals based on the loan amount.

Overall, these proposed changes aim to promote responsible and transparent online lending practices in Kyrgyzstan, while also encouraging economic development and entrepreneurship in the digital lending sector.

 

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