Microloans will be issued with a risk warning

The Competition Committee, together with the Central Bank, proposed amendments to the Law “On Advertising”.

According to the department, there is an increase in activity in the microcredit and consumer lending market in the country. At the same time, due to aggressive marketing and advertising by some credit institutions, a sharp increase in the debt burden among the population is observed.

In most cases, in the advertisements of such companies, the population’s attention is focused on the possibility of quickly and easily obtaining a loan. However, such an approach does not provide sufficient information about the financial risks that may arise in the future.

In this regard, the Competition Committee, together with the Central Bank, proposed to amend the Law “On Advertising”. According to the proposals, when advertising loans, including microloans, at least 10% of advertising time should be allocated to financial risk warnings.

This initiative aims to improve the financial literacy of the population, foster a culture of conscientious lending, and prevent excessive debt burden. The Competition Committee urges citizens, when undertaking any loan obligations, to clearly and responsibly assess their financial capabilities, as well as carefully study the terms, interest rates, and payment obligations related to such services,” the statement said.

Also read: Uzbekistanis’ microloan debt is increasing — CB. The Central Bank plans to tighten the requirements for microloans.