The Central Bank of Uzbekistan Proposes Stricter Rules for Installment Purchases

Tashkent, Uzbekistan (UzDaily.com) — The Central Bank of Uzbekistan has drafted a Code of Ethics for participants in the installment market, which proposes significant tightening of the rules for providing purchases on installment plans. The document has been published for public discussion.

According to the regulator, the proposed measures are aimed at preventing a rise in debt burdens among the population. In particular, an age restriction is planned: only citizens aged 18 and older will be able to take out installment plans.

When registering new clients, both online and offline, the collection of basic personal data will be mandatory, including full name, date of birth, Individual Identification Number (PINFL), phone number, residential address, and citizenship.

Upon registration, the client will receive an initial installment limit of 2 million soums. Any increase will be possible only after calculating the debt-to-income ratio (DTI), which, according to the Central Bank’s proposal, should not exceed 50%. This means that borrowers will be able to allocate no more than half of their official income toward installment payments.

The Central Bank also proposes prohibiting compound interest: in the case of overdue payments, fines or penalties would be applied only once for the fact of the delay. If there is an outstanding debt on previous loans, granting a new installment plan will be prohibited.

Additionally, the total amount of all additional charges—including interest, fees, penalties, and other payments—cannot exceed 50% of the principal debt per year, effectively capping the maximum overpayment on an installment plan at 50%.

The regulator also intends to secure clients’ right to early repayment of debt without any penalties or fines.

The Central Bank announced plans to regulate the BNPL (Buy Now, Pay Later) market back in January. In May, the head of the Central Bank, Timur Ishmetov, emphasized that the agency is concerned about the rapid growth of this segment, which is not yet fully supervised but already poses certain risks. At a Senate session in June, he confirmed that the regulator intends to legally require market participants to report installment contracts to credit bureaus and disclose information on overpayments.