In the state Duma introduced a bill on microfinance institutions is

© RIA Novosti / Vladimir Travelagency. Archive photoIn the state Duma introduced a bill on microfinance institutions is© RIA Novosti / Vladimir Trefilov

In the state Duma introduced a bill requiring the services of microfinance institutions (MFIs) to specify the annual interest rate for the use of microcredit, amount, and repayment period, as well as all additional costs borrowers, according to the electronic database of the Parliament.

The authors of the draft law was initiated by deputies of the LDPR faction.

«Advertising of services MFIs should provide information about the interest rate for the use of micro-loans (in percent per annum), the amount and repayment period of the loans (including early repayment), the list of all additional expenses of the borrower associated with obtaining, servicing and repayment of the loans (including early repayment), penalties for violation of term of repayment of micro-loans,» — said in the text of the bill.

As noted in the explanatory note to the document, the MFI using attractive advertising slogans, hide the full cost of the microloan. In particular, is either not reported rate for the use of microcredit as a percentage per annum and other conditions that affect its full cost, or shall specify the interest accrued for the day. It all works effectively to attract the attention of consumers advertising, the authors of the bill.

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