The FSC announced that the maximum legal lending rate will be lowered from the current twenty-four percent to twenty percent starting from July 7 this year as the government approved the amendments to the relevant laws during a cabinet meeting held on March 30.

In order to minimize the possibility of negative impact on individuals with low credit scores, the FSC plans to make available a sufficient level of microfinancing opportunities to vulnerable groups, improve rules on credit businesses while working to prevent illegal predatory lending practices and work to expand the supply of mid-range interest rate loans to borrowers with low credit standing.

Financial institutions and credit businesses are encouraged to reduce their lending rates in excess of the twenty percent limit on a voluntary basis. The authorities will closely monitor the lending rates while working to inform the public about the change in the maximum lending rate.