Lenders in Armenia obliged to inform borrowers on actual interest rate

YEREVAN, June 3. /ARKA/. Armenia’s National Assembly on Wednesday approved in the second and final reading a package of amendments to the Law On Consumer Lending.

According to them, the lender must confirm in writing the actual interest rate of the loan provided to an individual. According to the authors of the amendments, this will serve as an additional warning for people to review their credit behavior.

This rule will apply also to loans considered and provided online. In this case the amendments provide for a loan freeze period during which the borrower will receive a message regarding the actual rate in order to rethink his further steps.
In addition, the amendments suggest that when obtaining loans in the amount of 300 thousand drams and more with a maturity of less than three months, credit organizations will have to look into the borrower’s solvency.

The amended law will enter into force on January 1, 2021 ($ 1,448.49 dram). -0-

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