The bill proposes to limit the maximum rate to 1% per day. Today it is 2-3% or more.
The Verkhovna Rada on Thursday, September 21, approved in the first reading a bill on further regulation of the consumer loan market in Ukraine. This was reported by a representative of the people from the faction Voice Yaroslav Zheleznyak on Telegram.
According to him, the draft law was supported as a basis by 243 parliamentarians.
Bill No. 9422, in particular, suggests:
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introduce the indicator “daily interest rate on a consumer loan”, define the procedure for its calculation and set its maximum value at 1% per day of the total loan amount;
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establish requirements for the mandatory indication in the consumer loan agreement of information on the daily interest rate (except for consumer loans, the fulfillment of obligations which are secured by a pledge /mortgage or a right of trust);
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prohibit the lender and the new creditor from requesting the payment of any payments not specified in the consumer loan agreement and/or not taken into account in the calculation of the daily interest rate specified in the consumer loan agreement consumers;
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give the NBU the authority to establish additional requirements for assessing the borrower’s creditworthiness, as well as establish additional requirements for components of the calculation of the daily interest rate;
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oblige the lender to transfer information on all consumer loans, regardless of loan amount, to at least one of the credit history bureaus, and assess the consumer’s creditworthiness;
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prohibit the establishment in a consumer credit agreement of a condition on the unilateral extension of the term of credit use (extension of the term of credit use must be carried out exclusively by concluding an additional agreement by agreement of parties).
The explanatory note on the bill states that the National Bank of Ukraine arranges very high pricing in the microcredit market: the daily nominal rate can reach 5% per day, and the average nominal annual interest rate is more than 1000% per year.
At the same time, the average loan size that a person takes from a microfinance company is 5,000 hryvnias with a daily rate of 2.5%. Therefore, after 14 days, the most popular loan period, a person must return funds totaling 6,750 Hryvnia. That is, the amount of credit funds in financial terms is 1,750 Hryvnia.
Let’s recall that according to the results of the second quarter, the amount of net retail hryvnia loan portfolio of Ukrainian banks increased for the first time since the beginning of a full-scale war – by 4.5%.
Source: korrespondent
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.