CIVIL-LAW STATUS OF BORROWERS IN MICROCREDIT RELATIONSHIPS

Abstract

The article examines the civil-law status of borrowers in microcredit relationships in Uzbekistan as a set of rights, duties and liability measures arising from microcredit/microloan agreements and related protective mechanisms. The study proceeds from the “dual nature” of the borrower’s position: a party to a private-law obligation grounded in autonomy of will, yet often structurally weaker in terms of information and bargaining power – thus requiring mandatory transparency standards and safeguards against hidden charges. Using Uzbekistan’s Law on Non-Bank Credit Organizations and Microfinance Activity, the paper analyses key borrower protections: disclosure of terms and total cost of credit (microloan), the right to отказаться from the unused amount within two weeks, early repayment without punitive barriers, caps on aggregate charges and bans on certain fees. Doctrinal perspectives on the nature of loan/credit obligations and the limits of contractual freedom in socially sensitive financial services are discussed. A comparative section (EU/Russia/Kazakhstan) shows convergence with EU concepts of “total cost of credit” and proportional reduction upon early repayment, while highlighting regulatory differences in interest caps and supervisory techniques. Policy recommendations are proposed to strengthen coherent borrower status protection within private law.