Loan issues | New law on borrower protection | Part 2

The second part of our review of the law dated June 30, 2025 focuses on new measures designed to protect borrowers from fraudulent loans. A 24-hour cooling-off period is being introduced for online loans exceeding 150 MCI: the agreement is signed first, then the borrower waits 24 hours before providing additional confirmation to receive the funds.

If an online loan is issued without biometric verification, it is considered invalid: the bank or microfinance organization must cancel the debt, return the funds, and remove the record from the borrower’s credit history. A loan may also be written off if the bank or microfinance organization violated the procedure while a credit freeze was active, failed to comply with the cooling-off period, or issued a loan without the customer’s consent, provided the person has been officially recognized as a victim in a fraud case. Mandatory biometric verification will also be introduced for SIM card registration, while mobile operators will be required to strengthen oversight of fraudulent phone numbers.