BAKU, Azerbaijan, Mar. 19
By Ilkin Seyfaddini – Trend:
Microcredits and microloans in Uzbekistan have increased to 300 million soum ($31,411), Trend reports citing the Ministry of Justice of Uzbekistan, Trend reports citing the Ministry of Justice of Uzbekistan.
Previously, the amount of a microcredit should not have exceed 223 million soum ($24,396), while the size of microloans did not exceed 22.3 million soum ($2,334).
The bank interest rate on loans in national currency increased to 25.8 percent due to increased car loans in Uzbekistan.
In January 2020, the average weighted interest rate on all loans, except for car loans, was 25.1 percent.
In December 2019, the Central Bank of Uzbekistan approved the Regulations on the procedure for calculation of debt burden on loans and microloans received by individuals.
The new regulation introduced the concept of "loan burden indicator" - the ratio of average monthly payments on all received loans and issued guarantees to the average monthly income of the loan recipient (that is, his average monthly salary, pension and other income for the last 12 months).
This indicator is calculated if the total amount of loans under all contracts concluded by an individual with microcredit organizations and pawnshops, as well as the balance of principal debt under existing loans, exceeds 50 basic calculated values.
From March 2020, the granting of a loan (microloan) will be allowed if the credit burden of the loan recipient doesn't exceed 50 percent.
The regulation also sets a ceiling on the interest rate, charged daily according to the contract and not exceeding 0.3 percent. At the same time, penalties and interest for violation of the terms of the contract shall not exceed half of the total annual debt on the loan.
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