Loan issues | New law on borrower protection | Part 1

On June 30, 2025, a law was signed to strengthen consumer protection in financial services and enhance measures against fraudulent loans. The changes cover several areas, including a ban on issuing loans to conscripts, the voluntary credit freeze service, a requirement for spousal consent when obtaining large consumer loans, and mandatory in-person signing for a first loan.

If a bank or microfinance organization issues a loan in violation of these restrictions, the debt may be subject to cancellation, interest and penalties may be refunded, and the borrower’s credit history may be cleared. The law also introduces additional protections for borrowers whose loans were obtained through fraud.