This provision helps prevent credit providers from taking abbreviations by simply accepting apparently solvent debtors at face value. A lender can use its own valuation mechanisms, provided they are fair and objective. The consumer, on the other hand, must provide the requested information in a complete and truthful manner. Otherwise, the credit provider could fully defend the charge of granting reckless credits. The types of loan contracts vary considerably from sector to sector, from country to country, but characteristically a professionally developed commercial loan contract contains the following conditions: Section 90 lists many provisions of credit contracts (unlike all agreements) that are illegal and unauthorized. There are too many of them to make the list. The list is broad and extensive; Many of these provisions are likely to be open to a wide range of interpretations, which should lead to uncertainty. For example, a provision is illegal if its general purpose or general effect is to enslave the purposes or directives of the law or to “mislead” the consumer. In addition, an illegal provision of ancillary credit contracts does not fall within the definition of credit contracts in the act. Section 5 defines the limited provisions of the law applicable to them. Section 89 lists a number of credit contracts that are illegal, including any adult person entitled to apply for a loan, but no one is entitled to the credit.
A lender may choose to refuse credit on reasonable business grounds, but should not unfairly discriminate against a consumer against other consumers on the basis of race, religion, pregnancy, marital status, ethnic or social origin, sex, sexual orientation, age, disability, culture, language Etc. A consumer may demand reasons for denial of credit that must be communicated in writing by the credit provider. A credit contract is a credit contract if it provides for a deferral or delay in payment and when a commission or interest is charged for the deferred payment. The law does not require a credit contract to be signed in writing and by both parties, even though this is implicit in the law as a whole. A credit contract can be a credit facility, a credit transaction or a credit guarantee (or a combination of these). These three terms are defined in section 8 of the act. The National Credit Act imposes limited interest rates on all forms of credit, including microcredit. However, the law introduces other fees (initiation fees and service charges) that keep the total cost of credit extremely high. It is no longer enough to take into account only interest rates. Interest rates, introductory fees and service charges must be carefully calculated to calculate the total cost of credits for borrowers. The new cost of credit provisions came into effect on June 1, 2007. The law contains detailed provisions for bank statements.
The regulations prescribed the form and content of declarations for small agreements. Credit providers are required to provide consumers with regular bank statements, usually once a month (but every two months for temperature purchase contracts). The law pursues the ambitious and extremely difficult goal of promoting a competitive, efficient and efficient credit economy and a fair, transparent, accountable and accessible market. The main theme of the law is consumer protection. Section 3 of the Act contains a number of methods used by law to achieve this objective. The law limits the lender`s common right to impose debts, i.e. to demand what is owed under the credit contract. This is in line with international consumer law, but the provisions of the law have been criticized for being unusually cumbersome and harmful to credit providers.  Institutional credit transactions also include revolving and non-renewable credit options.