The rules were approved by a presidential resolution on improving installment payment services for consumers. Under the new system, companies other than banks and microfinance organizations will also be able to provide installment payment services, but only after being included in a register maintained by the Central Bank.

Banks and microfinance organizations will be entered into the register by notifying the Central Bank, while other legal entities will have to register with the regulator.

The resolution also sets new requirements for installment payment contracts and limits the costs that consumers can incur beyond the principal amount.

New limits on installment purchases

The value of goods, works or services purchased through an installment payment arrangement may not exceed 250 times the base calculating amount. Based on the current basic calculation unit of UZS 440,000, this amounts to UZS 110 million.

Operators must separately disclose commissions, markups and other charges included in the final price of a product, work or service in the contract.

Real estate and other property whose circulation is prohibited or restricted by law cannot be purchased through an installment payment service.

The total of all payments other than the principal, including commissions, fines, penalties and other liability-related charges, may not exceed 50% of the installment amount per year.

Consumers will also have the right to repay an installment plan fully or partially ahead of schedule at any time without additional fines, penalties or commissions.

The maximum term of a consumer’s obligations under an installment payment agreement will be limited to 12 months.

New rules for installment payment operators

The new framework will formally recognize legal entities providing installment payment services as installment payment operators. Banks and microfinance organizations will be subject to the same framework, while other legal entities will have to obtain registration with the Central Bank before starting such activities.

Operators will not be allowed to issue financial consumer loans or attract funds from individuals.

They will also be restricted in transferring claims arising from installment payment contracts. Such claims may be assigned only to another installment payment operator, a microfinance organization or a bank.

The new rules will take effect on January 1, 2027.