The Board of the Central Bank approved the general principles of responsible lending, which are advisory in nature for use in the activities of commercial banks and microcredit organizations in relation to the provision of consumer loans and microloans to individuals, the press service of the Central Bank reports.
These principles for credit institutions reflect the main approaches related to:
- clear and complete disclosure of information before, during and after the signing of the loan agreement;
- ethical and fair treatment of clients;
- providing effective error correction, handling complaints and a referral mechanism for resolving disputes.
The principles of responsible lending impose on the lender the obligation to provide the borrower with information about credit and microcredit services in a transparent form so that borrowers can make an informed and informed decision when obtaining a consumer loan and microloan.
The adoption of the principles of responsible lending will help to prevent unfair and difficult conditions for borrowers or the accumulation of debt burden by borrowers when issuing loans by commercial banks and microcredit organizations.