That's it! Instant online loans are no longer available

New regulations for online loans have come into effect in Kyrgyzstan. As a result, borrowers can no longer receive instant funds as before. The National Bank has introduced a “cooling-off period,” a mechanism designed to reduce the risk of fraud and protect consumers. How does it work? The “cooling-off period” is the set time during which a borrower cannot immediately access funds after submitting an online application. This window allows the client to cancel the loan and terminate the agreement if it turns out the loan application was submitted by fraudsters. The length of the cooling-off period depends on the loan amount: 3 hours for loans from 15,000 to 50,000 soms 6 hours for loans from 50,000 to 100,000 soms 24 hours for loans over 100,000 soms For loans exceeding 100,000 soms, there’s an additional security measure: the financial institution must contact the client by phone to confirm the application. If the client does not confirm, the loan is automatically blocked. Why is this important? These new rules are a response to a surge in online lending fraud. Criminals posing as bank employees often use social engineering techniques to convince individuals to take out loans or transfer money into so-called “safe” accounts. According to the National Bank of the Kyrgyz Republic, more than 120 complaints were received last year from citizens victimized by such schemes. Those most affected are typically individuals with low financial literacy, including the elderly and residents of rural areas. According to Iskender Sharsheev, the cooling-off period may help reduce impulsive, ill-considered decisions that lead to debt. However, for well-prepared fraudsters who have extensive information about their victims, this delay may not be an insurmountable obstacle, though it will make their work more difficult. The cooling-off period could slightly inconvenience honest borrowers who need immediate funds, but given the relatively short waiting times, it is unlikely to significantly hinder standard lending scenarios. Sharsheev points out that such measures often lead to a decrease in fraud, including telephone scams and dubious offers like “Nigerian prince” letters. The impact may be especially notable in the initial phase, as fraudsters scramble to find new loopholes. While the cooling-off period mechanism is not a guaranteed safeguard—no single measure can completely prevent fraud—it raises the difficulty threshold for criminals and gives clients more time to detect and prevent potential errors. The National Bank expects that this initiative will be an important step toward curbing financial crimes and boosting security in the online lending sector. Source: https://www.akchabar.kg/ru/article/elektronnie-dengi-igvepnpgkpdmhynm/vse-poluchit-momentalnij-onlajn-kredit-bolshe-ne-poluchitsya-osdadikvcempqmln online loans, Kyrgyzstan, instant funds, new regulations, National Bank, cooling-off period, fraud prevention, consumer protection, online lending sector, telephone scams, social engineering, financial crimes, loan application process, loan confirmation, financial literacy, rural areas, elderly victims, impulsive borrowing, debt prevention, fraudsters, short waiting times, security measures, verification calls, loan blocking, digital finance, financial security, online credit schemes, legal framework, economic stability, borrower rights, regulatory reforms