Regulatory Alerts1995-01-01
Banking and Financial Services (Cost of Borrowing) Regulations, 1995
Issued by the Government of Zambia under the Banking and Financial Services Act, 1994, these regulations mandate financial institutions to transparently disclose the true cost of borrowing to customers. The rules establish standardized formulas for calculating the annual percentage rate and cost of borrowing, require written disclosure of loan terms and charges at or before contract execution, and specify mandatory contents for disclosure statements. Additionally, the regulations exempt certain small or statutory loans from disclosure requirements, restrict penalties for late payments and prepayments, and govern specific disclosure obligations for credit and charge card holders.
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