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Government Bill Bans to Lift Effective Interest Rate on Online Loans over 100%

Government of Georgia plans to introduce limits in online loans interest rates. The government-proposed bill determines top margin of online loan interest rate. Namely, effective interests rate must not exceed 100%.

The bill also sets top margin of fine. Namely, total amount of any financial costs, imposed fine or any form of financial sanction must not exceed the double amount of the loan’s principal sum.

Moreover, the lender is banned to impose payment commission fee or fine in advance on the borrower or any other penalty sanction that exceeds 2% of the remaining amount of the credit.