I. The decision to take out a loan is a responsible decision.

Before applying for a loan from a bank or non-banking financial institution (hereinafter referred to as the bank), the borrower must pay attention to the fact that obtaining a loan implies the obligation to repay the principal amount within the terms established by the loan agreement and pay interest on the loan.

Before deciding to receive a loan, the borrower should:

• determine the intended purpose of the loan, assess your needs for obtaining a loan and the ability to repay it on time in accordance with the loan agreement;
• familiarize yourself with the conditions under which the loan will be provided, including all payments associated with obtaining the loan and its repayment;
• pay attention to the loan interest rate;
• pay attention to the size of the annual effective interest rate, which takes into account the borrower's expenses associated with obtaining a loan;
• pay attention to the full cost of the loan in absolute terms, which takes into account the client’s expenses, including payments in favor of third parties at the time of concluding the loan agreement.

II. Carefully study the loan agreement and other documents.

Before signing a loan agreement, the borrower must carefully study its terms.

Before signing the loan agreement, the borrower has the right:

• at your discretion, request draft contracts for legal advice;
• if the terms of the loan agreement are not clear, ask for clarification from bank employees.

After studying the terms of the loan agreement, the borrower needs to once again weigh the pros and cons of receiving a loan.

III. Signing agreements to obtain a loan.

At the client’s request, the contract is drawn up in the state or official language (with the borrower being given the right to choose the language). The text of the loan agreement must be clear and accessible for perception and understanding.

When signing a loan agreement, the borrower should clarify all the conditions under which the loan is issued in order to avoid possible problems in the future with the return of borrowed funds in accordance with the terms of the loan agreement.

After signing the loan agreement, the borrower has the right to reject a loan in the period after the conclusion of the loan agreement until the receipt of funds.

It must be remembered that by signing a loan agreement, the borrower agrees to all its terms and assumes obligations to fulfill them.

The borrower needs to know that in case of non-fulfillment or improper fulfillment of obligations in accordance with the loan agreement, banks can file a foreclosure on the collateral (including real estate: a house or apartment) in accordance with the legislation of the Kyrgyz Republic.

In this regard, the loan agreement and other bank documents must be signed in

if the borrower is confident that all the terms of the contract are clear, he knows exactly what payments will need to be made and when, and he is confident that he can do it.

The borrower can find general information on banks on the official website of the National Bank of the Kyrgyz Republic (www.nbkr.kg), in the sections “Banking System” and “Non-Bank Financial Institutions”.