Central Bank Demands Bank Clarification on Microloan Insurance
The Central Bank of Uzbekistan has ordered commercial banks to clarify online microloan insurance terms and early repayment refund procedures by 16 July 2026.
Central Bank Seeks Clarification from Banks on Microloan Insurance
Tashkent, Uzbekistan (UzDaily.uz) — The Central Bank of Uzbekistan has directed commercial banks to offer comprehensive explanations to customers regarding the insurance terms associated with online microloans and other retail loans. This directive comes in response to social media discussions about potential challenges in reclaiming a portion of the insurance premium when a loan is fully repaid early.
In a letter addressed to banks, the Central Bank noted that it is examining reports suggesting that when online microloans are granted, the insurance premium is deducted either from the client's account or from the loan amount itself. However, during early repayment, clients often find that the portion of the insurance premium for the unused period is either not refunded or the process for obtaining a refund is unclear.
Consequently, the Central Bank has instructed credit institutions to provide detailed information about the insurance product procedures on their official websites, mobile apps, and social media platforms. Banks are required to clarify whether the insurance is compulsory or optional, the sources of funds used for the insurance premium, which insurance companies are involved in the program, and whether a partial refund of the insurance premium is available upon early loan repayment.
Additionally, the regulator has asked banks to specify whether the refund process is automatic or if clients need to reach out to the bank or the insurance company. They must also outline the timelines for fund returns, the necessary documentation, and the application process.
If the situations reported on social media do not reflect the actual practices, the Central Bank has encouraged banks to publish well-reasoned explanations that clearly outline the current procedures. Should there be any technical or organizational challenges in refunding the insurance premium, credit organizations are urged to transparently communicate these issues and detail the steps and timelines for their resolution. The regulator stressed that communications should provide practical advice for clients rather than just general statements.
Commercial banks must report on the actions taken and provide links to the published clarifications to the Central Bank by July 16, 2026.
This intervention by the regulator was triggered by a post on the anonymous Telegram channel Platforma.uz, which alleged that the insurance premium is automatically deducted when processing online microloans, and that clients must independently request a refund to recover part of the funds after early loan repayment. The post also called for the establishment of an automatic refund system for insurance premiums without requiring borrower involvement.