BISHKEK, Kyrgyzstan, November 28. In a move aimed at protecting citizens from financial fraud, the Board of the National Bank of Kyrgyzstan adopted a regulation, introducing a cooling-off period for online loans, Trend reports.
The cooling-off period is a timeframe during which the bank refrains from disbursing funds to the borrower, giving the client the opportunity to cancel the loan and terminate the agreement.
This measure is intended to protect borrowers in cases where a loan may have been taken out fraudulently, for example, if scammers have obtained the loan in the client's name.
The length of the cooling-off period will depend on the loan amount:
Loans between 15,000 (approximately $172) and 50,000 soms ($576): 3 hours;
Loans between 50,000 and 100,000 soms ($1,152): 6 hours;
Loans over 100,000 soms: 24 hours.
Additionally, during the cooling-off period, financial institutions will be required to make a confirmation call to the borrower for loans exceeding 100,000 soms to verify the client's consent to the loan.
If the confirmation call is not made within the required timeframe, the bank will not be able to disburse the funds.