NBK bans banks from charging loan fees
"With a view to reduce charges collected by second-tier banks on a monthly basis, the National Bank prohibited establishing and collecting charges for bank account keeping, those associated with granting and servicing a loan, as well as for crediting (granting) to a bank account a loan under bank loan agreements for the purchase of goods, works and services with individuals not engaged in any entrepreneurial activities," the National Bank's statement says.
The prohibition will extend to bank loan agreements, which will be signed from March 2019.
In the meantime, it should be recalled that starting 2019, along with remuneration and forfeit, banks are not entitled to claim payment of any charges or other fees related to loan issuance and service, which were accrued after 180 consecutive calendar days overdue, under a mortgage housing loan agreement for an individual not engaged in any business activities.
Besides, to protect the rights of individuals who were granted mortgage loans secured on real estate, this year the National Bank prohibited banks from claiming payment of any remuneration charged after 180 calendar days overdue.
One should be aware that the remuneration charged and paid before the enactment of the Law dated January 21, 2019, that is, before February 3, 2019, is not subject to adjustment. By the Law dated July 2, 2018, charges and other fees related to loan disbursement and service are included in the order of loan payments.
Starting February 1, 2019, there are some changes. According to them, to inform borrowers about the interest rate to be paid, banks are given the opportunity to indicate the interest rate not only as percent per annum but also as a fixed amount, i.e. as a specific amount.
For loans with an interest rate in a fixed amount, the highest annual effective interest rate shall not exceed the limit established by law.