The Government has adopted a bill amending the rules of loans. Under the new regulations lenders will not be able to freely determine additional payments for purchases in installments. It will also be prohibited to add unlimited commission, margins, fees for submitting or processing applications or compulsory insurance.
The maximum limit for additional payments for installment purchases will be set at 45 percent of the loan amount per year. If the installments are spread over six months, the additional costs will not exceed 32.5 percent, while the interest limit will remain at the current level, i.e. 10 percent a year.
The new rules will apply to short-term loans for small amounts.
