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Rada ordered banks to inform borrowers about real loan rates

The deputies passed the law on consumer crediting.

Rada ordered banks to inform borrowers about real loan rates
Photo: Photo: presidential press service

The Verkhovna Rada adopted on 14 November the law On consumer credit aimed to improve the procedure for issuing consumer loans .

The bill, supported 247 by lawmakers with 226 minimum required, obliges banks to inform potential borrowers about the size of the effective interest rate, repayment schedule with specific amounts, payment terms and possible fines.

The banks are prohibited to advertise interest-free loans or loans without official confirmation of borrower's financial status.

The law will not apply to loans of up to one month, ie a bank will not have to disclose actual interest rate in the advertisement about short-term loans.

The law shall not apply to loans provided by credit unions.

The law also suggests to regulate on the issue of additional and related services on consumer crediting contracts.

Earlier, President Petro Poroshenko sponsored a bill on compensations to the depositors of the bank Mykhailivivskyy.