At an emergency meeting of the Good Finance, held in connection with the spread of coronavirus, MPs passed a law on interest on credit in the country for the period of quarantine.
According to this decree, fines and penalties for overdue loans are canceled for a while, because many people were forced to go on vacation due to the aggravated situation with the epidemic, while others completely lost their livelihoods.
For example, businessmen, owners of catering establishments, entertainment centers, clubs, travel agencies, carriers. Ultimately, this will affect every Ukrainian.
It seems that in this situation, everyone lost, except for manufacturers of masks and antiseptics for hands. Therefore, it will be relevant to understand what the newly adopted law on fines and late interest on loans indicates, how much you can not pay a fine for an overdue loan and other important points.
Law of the country on the abolition of fines and penalties on loans
On March 17, 2020, the government adopted the Law on the abolition of fines on loans, which is valid from March 1 to April 30 of the current year. In the Law of the country “On consumer lending” (Vedomosti of the Supreme Council (BBC), 2017, No. 1, Art. 2) appropriate amendments have been made.
Thus, banks and financial companies are required to temporarily abolish fines and penalties for loans in case of non-compliance by the borrower with contractual obligations.
For an ordinary person, the canceled penalties for non-payment of a loan is extremely good news. However, it is worthwhile to understand that the abolition of fines and penalties for late credit is a temporary order.
In addition, the law does not abolish the calculation of the obligatory monthly or daily payment stipulated by the loan agreement and does not provide for the cancellation of existing loans.
It is important not to forget about another important point – credit history. A positive credit history is an opportunity in the future to turn to any financial company and get a loan without difficulty. Even under quarantine, it is important to comply with the rules of the loan agreement and maintain payment discipline.
Credit conditions during the period of the coronavirus epidemic
In the indicated period, the loan conditions will not change, except for the above innovation. Banking structures and MFIs promise to work normally.
However, it is not advisable to go to public and crowded places under quarantine, therefore it will be more efficient to choose remote financing (without visiting branches). So, in the online lending service Mr. Bumble any adult Ukrainian can take out a loan on the following conditions:
- The first loan is up to USD 6,000, and the subsequent ones allow you to increase the limit to 12 thousand. Also, regular customers become participants in the loyalty program, which provides for mandatory discounts, promotions, special offers and regular draws;
- An instant loan without a penalty can be taken for a period of 1-30 days. There is also a free opportunity to extend the contract if you can’t make a payment. This service is called prolongation. It can be repeated an unlimited number of times;
- If under normal conditions the daily interest on the loan was 1.1% plus the daily rate of 1.6%, now the penalty and late payment interest are canceled. The standard rate is applicable – 1.6%;
- Loans are issued under two documents – a civil passport and TIN, the data of which are filled in the applicant’s application form. Thus, the requirements of certificates, guarantors, collateral are excluded. Students, unemployed, people with an unstable income, pensioners and people with a bad credit history can apply. Approval statistics are 9/10.
How to repay a loan without fines?
For the convenience of users, provides an opportunity to repay a loan without penalty in three possible ways:
- At the box office of partner banks;
- In self-service terminals;
- Through the Internet.
Obviously, paying off debt is more convenient and safer (with current realities) online. The procedure for making funds via the Internet is extremely simple:
- Enter the client’s personal account on the company’s website;
- Choose the “Pay off” column in the “My credits” tab;
- To clarify, pay the full debt or only interest;
- Enter bank card details (16-digit number, expiration date, CVV-code);
- Confirm the operation with consent.
You can find out the balance of the debt through the user account without leaving the apartment. You can also remotely order additional services (eg, prolongation).
As you can see, lenders meet borrowers by abolishing fines for non-payment of loans.
But you should remain a respectable person and settle accounts, if there is such an opportunity for its part, provided full remote access to the service so that people did not violate quarantine and stay at home, managing affairs remotely.