Regulatory Alerts2025-01-21
NBFIRA Repayment Schedule Directive for Micro Lenders
The Non-Bank Financial Institution Regulatory Authority (NBFIRA) directs micro lenders to issue standardized repayment schedules to borrowers prior to loan agreement signing. The directive mandates clear disclosure of principal amounts, total cost of credit, interest rate classifications, penalty caps, and insurance details to resolve market inconsistencies in credit calculations. Non-compliant lenders face civil penalties up to P250,000 and must adhere to these disclosure standards effective April 1, 2024.
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