Estonia, Financial Services, Legislation, Loan

International Internet Magazine. Baltic States news & analytics Friday, 29.03.2024, 01:29

Law regulating interest rates of fast loans failed in Estonia

Juhan Tere, BC, Tallinn, 11.08.2009.Print version
The law, that regulates fast loan interest rates, failed in Estonia since in fact fast loans haven't gone cheaper, that appeared from the analysis from Kiirlaen.info, quoted by Aripaev.ee/LETA.

The law amendment regulating fast loan market activity, came to force about three months ago, in May 2009. The upper limit was set to loan interests, Tõnis Hinnosaar, the co-founder of Webistre Solutions OÜ which manages Kiirlaen.info, said.

 

The upper limit comes to force only when some assumptions are filled. The main thing is that the lender may not take advantage of a borrower's difficult situation. The borrower must be aware of all loan terms, and the issuer must be aware of the borrower's economic situation.

 

"One must admit that there haven't been big changes. We envisaged then that borrowers would start to think of new possibilities on taxation of the loans. It has happened since several loan lenders have reduced interest rates, but have added credit rating analysis or some other similar service. In practice, it means that loan will cost as much as before," Hinnosaar said.






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