A presidential decree in Uzbekistan has established that starting January 1, 2027, the activities of installment service operators will be formally regulated. According to the document, any legal entity providing installment services (excluding banks and microfinance organizations) will be recognized as an installment service operator.

The right to operate as an installment service provider will only arise after the entity is included in a registry maintained by the Central Bank. Banks and microfinance organizations will be registered through notification, while other legal entities must undergo formal registration with the central bank.

The decree specifies that real estate and other property withdrawn from circulation or restricted under legislation cannot be the subject of installment services. Operators are prohibited from issuing financial consumer loans or attracting funds from individuals. They may only assign rights of claim under installment contracts to other operators, microfinance organizations, or banks.

Requirements for installment contracts include: the value of the object must not exceed 250 times the basic calculation value (110 million soums as of September 1); commission fees and other charges must be listed separately; total additional payments cannot exceed half the installment amount per year; consumers have the right to early repayment without penalties; and the maximum contract term is 12 months.

Additionally, from next year, organizations providing commodity consumer loans will no longer be required to report contracts worth up to 3 times the basic calculation value (1.32 million soums) to credit bureaus.

Source: uznews.uz