In recent years, the activity of the microloan and consumer lending market in Uzbekistan has increased. However, financial services are becoming popular among the population through aggressive advertising and marketing methods by some credit institutions. This, in turn, leads to a sharp increase in the debt burden.
According to the Committee on Competition, in many cases, such credit products are advertised in such a way that citizens mainly focus on the possibility of obtaining them quickly and easily. However, due to insufficient information about financial risks, many citizens find themselves in a difficult financial situation.
In this regard, in cooperation with the Competition Committee and the Central Bank, it is proposed to amend the Law "On Advertising." According to it, when advertising loans and microloans, at least 10% of advertising should be allocated to financial risk warnings. This initiative is aimed at raising the financial awareness of citizens and preventing excessive debt.
The Competition Committee urged citizens to accurately and responsibly assess their capabilities while assuming any debt obligations, as well as carefully study loan terms, interest rates, and payment obligations.
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