New loan disclosure rules take effect: maximum and minimum rates must appear in every loan offer
Starting from the upcoming enforcement date, financial institutions will be required to display both the minimum and the maximum interest rates in every loan announcement. The central banking authority clarified this requirement in its official statement. The move aims to bring greater transparency to the lending process and help potential borrowers compare offers more effectively.
The regulator explained that the change covers all forms of disclosure used in text advertisements as well as audio advertisements, and it extends to information published on websites and mobile applications. Financial institutions must present the full cost of borrowing in the same font and size as the most prominently advertised rate. The central bank notes that this alignment will draw attention to all terms and conditions associated with a loan, enabling borrowers to assess the true financial burden more consciously rather than on the basis of a single, potentially misleading rate.
Industry observers have weighed in on the directive. One economist criticized the previous decision, arguing that stricter lending conditions could tighten credit access for consumers and potentially exacerbate social tensions. The debate centers on the balance between consumer protection and market liquidity, with stakeholders watching to see how the policy will affect lending dynamics in the near term.
According to the economist, a large share of households already carry significant debt obligations. Many new consumer loans have been used primarily to refinance existing debts rather than to fund new spending. From this perspective, stricter loan approval criteria and tighter control over lending could disproportionately affect the most vulnerable groups, potentially widening financial insecurity. The discussion underscores the need for a careful calibration of policy to avoid unintended consequences while still promoting clear, fair pricing for borrowers.
There has also been previous public discourse about the reach and impact of concessional loan programs. The evolving conversation continues to focus on who qualifies, how benefits are allocated, and how such programs interact with broader credit markets. The central bank’s emphasis on transparency is part of a broader effort to ensure that all participants understand loan costs, eligibility requirements, and the true risk profile of borrowing in today’s economic environment.