Regulatory Alerts2017-01-01
Decree of NBS No 10/2017 on the assessment of borrowers’ ability to repay consumer loans
Národná banka Slovenska issued Decree No 10/2017 to establish detailed provisions for assessing borrowers' ability to repay consumer loans. The regulation mandates a maximum Debt Service-to-Income ratio of 1.0, defines specific calculation methods for income, expenses, and existing financial obligations, and requires verification of income through objective external or internal sources. Additionally, it sets maximum loan terms at eight years for standard consumer loans and thirty years for those under other legislation, while defining thresholds for significant refinancing increases.
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