Operating within the financial sector of Uzbekistan, Octobank has rolled out two new financial offerings—Octo Card and Octo Restart—purportedly designed to assist citizens with personal expenses and the consolidation of existing debts. These programs aim to attract borrowers seeking liquidity, though questions remain regarding the long-term cost of such financing.

The Octo Card product is marketed for various personal needs, such as upgrading household appliances, home renovation, or tuition payments, offering repayment terms of up to five years with a grace period of up to three months. The annual interest rate is set at 25 percent for bank employees and payroll project participants, while remaining customers face a steep rate of 30 percent per annum.

Borrowers can allegedly access up to 100 million sums without collateral for a portion of the amount, whereas sums exceeding this threshold require property collateral. Financial observers note that such elevated interest rates significantly increase the total repayment burden, potentially trapping consumers in long-term debt cycles despite the promise of manageable monthly installments.

Meanwhile, the Octo Restart program offers refinancing options for loans previously secured at other financial institutions, ranging from 4 million to 100 million sums for up to five years. While a reduced rate of 24.9 percent is promised to those with exemplary payment records, the standard baseline rate sits at 28.9 percent, highlighting the substantial financial costs involved in restructuring household liabilities.

Source: www.uznews.uz