It is important to examine the conditions for the issuance of microcredit.
The national Bank of Ukraine urges citizens to be wary of microcredit.
“Loans at 0% for 10 minutes”, “credit “without income”, “loans to customers with bad credit history”. This is sounds good. But there is a risk that you will buy the carriage, which at midnight turns into a pumpkin“, — stated in the message NBU.
The national Bank lead three rules, which will help to avoid situations when loan “at 0%” is actually a loan “under 1700%”.
- pay attention that the rate of 0%, or 0.01% on microcredit can act during the grace period, e.g. 5 days. After that, enter into customary rates. And here you can hide 100%, 700% or even 1700% per annum;
- pay attention that non-Bank financial institution indicated rate on the loan is 1-2%. Looks good. But this is a bet one day. Despite the small payment, conditionally 10-20 UAH per day, the client need not worry because of the delay and failure to meet their obligations. However, after that trigger fines, charges and accrued interest;
- clearly understand the repayment schedule and penalties in case of delay. What penalties can increase your debt significantly.
Some micro-Finance company in case of default, automatically increase the rate on the loan. This is fine (for example, 2% of the overdue payment in the first day of delay plus 2% each subsequent day) and charges (for example, 1.5% of the loan amount per each day of delay). So you should start to deal with the conditions.
The press service of the NBU said that the Agency is to protect consumers, support changes to legislation that would distribute the requirements to the disclosure of the total interest rate on the loan for loans of less than one minimum salary and for a period of less than one month.
The document, which is prepared for the second reading, also proposes to define a maximum limit of fines which financial company has the right to charge the customer. This will protect citizens from fines and penalties, the amount of which today at times, and even dozens of times exceed the amount of the loan.