Regulatory Alerts2022-01-01
Circular Letter No. 1 of 2022 Regarding Financing Grant Considerations and the Application of the Early Repayment Option for Default Risk Interface
The Financial Regulatory Authority mandates licensed microfinance and SME financing entities to strictly verify full repayment before granting new or top-up financing, ensuring funds are not used to split existing debts. It further requires comprehensive written disclosure and client consent regarding cost burdens when exercising the early repayment option, while prohibiting concurrent financing to related parties during this process. Finally, it holds management and authorized officers directly responsible for enforcing these provisions across all service channels and promptly reporting any non-compliance.
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