President of Belarus signs law on consumer credit and microloan

On February 18, the President of Belarus Alexander Lukashenko signed the law "On consumer credit and consumer microloan". This was reported by BELTA.

The document is aimed at comprehensively improving the legal regulation of relations in the field of lending and microfinancing of individuals, as well as increasing the level of protection of the rights of consumers of financial services.

The law, in particular, provides for the provision of individuals with more detailed information on the terms of the loan (microloan) and a mandatory assessment of their creditworthiness.

The essential terms of consumer loan (microloan) agreements, a limit on the amount of interest under a consumer microloan agreement, as well as a ban on charging a penalty for early repayment of a consumer loan and additional payments for using a loan (microloan) are established.

Borrowers who are in a difficult life situation will be able to receive payment deferments.

It is also possible for third parties to participate in consumer lending (microfinancing) on behalf of the lender (creditor) without charging remuneration to citizens.

In addition, the law contains a provision on amendments to the Civil Code in terms of determining in the lease agreement (except for the leasing agreement) the amount of rent only in Belarusian rubles.

The innovations will contribute to the formation of more transparent and understandable legislation, and will also provide additional guarantees to citizens.