Microcredit companies will face new rules from January. They will have to verify customers and lower interest rates for customers while paying off the debt.

The new rules that are being established for non-banking institutions that grant loans are not only intended to strengthen control over them, but to set conditions for them to approve loans in a few minutes.

Microfinance has been operating for many years in the market and what distinguishes it from commercial banks is the approval of the loan without bureaucracy and the return of this loan with higher interest rates.

In this aspect, many individuals and businesses have found solutions to their problems, but many others have complained, have not repaid the loan and even due to the behavior of the institutions, have been forced to take loans on loans to pay off debts.

To fix the system, the Central Bank will now require these companies to work with banking standards, verifying customers for their ability to pay.

If we take an example, for a loan worth 500 thousand ALL, according to the customer’s choice, microfinance collects 60 thousand ALL more at the end of 6 months, and the longer the time for its repayment, the higher the interest.

For this reason, the Central Bank announces that it will set conditions for the reduction of commissions and interest rates. The new regulation is expected to take effect starting from January 2025.