Uzbekistan to Establish New Rules for Installment Purchases

Uzbekistan is introducing new rules governing installment purchases.

On August 14, Uzbek President Shavkat Mirziyoyev signed a decree "On measures to improve the provision of installment services to the population," as announced by the Ministry of Justice.

According to the document, a system of installment service operators will begin operating in the country on January 1, 2027. An operator will be any legal entity providing installment services, with the exception of banks and microfinance organizations.

To carry out such activities, a company must be included in a special register maintained by the Central Bank. Banks and microfinance organizations will be included in the register by notifying the Central Bank, while other legal entities will be included after registering with the regulator.

The value of the installment plan must not exceed 250 basic calculation units (110 million soums as of September 1). Real estate, as well as property seized or restricted in circulation by law, cannot be used for installment services.

Installment plan operators will be prohibited from issuing consumer loans or accepting funds from individuals. They will be able to transfer claims under installment plans only to other installment plan operators, microfinance organizations, and banks.

The resolution also establishes requirements for installment plans. They must separately specify the operator's commission or markup, as well as other payments included in the final price of the goods, work, or services. The total amount of all payments in excess of the principal debt, including brokerage fees, fines, penalties, and other penalties, will not exceed 50% of the installment amount per year.

Consumers have the right to repay the installment plan, in whole or in part, early at any time without incurring additional fines, penalties, or fees. The maximum term of the consumer's obligations under the installment plan agreement will be 12 months from the date of its conclusion.

Furthermore, starting January 1, 2027, organizations providing consumer loans for sale will no longer be required to submit information to credit bureaus on agreements valued at or below 3 BRV (1.32 million soums) and their performance.

According to the resolution, installment plan service providers are required to:

* Conduct digital identification and verification of clients using information technology when issuing installment plans.

* Submit information on all installment plans and their performance to credit bureaus.

* Consider the maximum client debt burden established by the Central Bank when deciding whether to grant an installment plan.

* Comply with prudential standards and requirements of the Central Bank established to regulate and supervise their activities.

These requirements will also apply to some organizations that formally provide consumer loans for sale. If their quarterly turnover from the sale of goods, works, and services exceeds 500 million soums, and installment plans account for at least 50% of this turnover, such companies will be required to register, be included in the registry, and comply with the requirements for installment plan operators.

A Central Bank analysis shows that the installment plan market poses hidden risks to financial stability. The regulator studied the revenue growth of services and user profiles by region. The regulator calculated that purchasing equipment on an installment plan is often more expensive than a bank loan. Using the iPhone 16 Pro Max as an example, the regulator showed that the markup can reach 44%, with the actual overpayment reaching 74% per annum.

At the end of June 2025, Central Bank Chairman Timur Ishmetov reported that the installment plan market in Uzbekistan had reached 8.5 trillion soums. Most contracts are not recorded by credit bureaus, increasing the real debt burden of the population. The regulator proposed requiring participants to disclose data and the exact amount of the overpayment.