The Competition Promotion Committee explained the dangers of an unread microloan agreement

The Competition Committee clarified what an unread microloan agreement can turn into

When applying for a microloan, a borrower may receive significantly less money on their card than specified in the contract, and in the event of a delayed payment, face a demand to repay the entire remaining debt prematurely. The Competition Committee reminded which conditions should be paid attention to before signing an agreement.

In one of the cases examined by the agency, the microloan amount was 19 million 656 thousand sums. However, only 13 million 650 thousand sums were credited to the consumer's card. The remaining 6 million 6 thousand sums were automatically withheld to pay for the operator's services.

According to the Committee, consumer complaints frequently feature situations where borrowers do not study the agreement in full, do not know their rights and obligations well enough, and do not consider the consequences of overdue payments.

The agency also recalled Article 736 of the Civil Code of Uzbekistan. If a borrower violates the deadline for the next payment on a loan that is returned in installments, the lender has the right to demand early repayment of the entire remaining amount.

Before applying for a microloan, the Committee recommends clarifying how much money will actually be credited to the card, how much will ultimately have to be returned, what the amount and terms of payments are, and what penalties apply for overdue payments. The agency also urges assessing one's financial capabilities in advance to avoid unexpected obligations.