Ulaanbaatar
Lower pension loan rates starting January 16
Society
Ulaanbaatar /MONTSAME/ Ministry of Labor and Social Protection, MongolBank and some commercial banks signed a memorandum of mutual understanding on improving pension loan conditions on January 5.
Starting from 16 January, pensioners will be able to take one-year loan with an interest rate of 12 percent. The loan amount will be equal to up to 70 percent of a borrower's pension. Out of 381.8 thousand people that currently receive pensions, 230.8 thousand have taken loans worth MNT 680.9 billion with a rate of 18 percent to be paid over 36 months.
Previously in January of 2017, Khan Bank and State Bank began offering 6-month loans with 15 percent rate. However, there are not many people who can afford such short-term loan. “Therefore, decreasing pension loan rate is our first step towards lessening financial burdens on retired individuals”, emphasized the Minister of Labor and Social Protection S.Chinzorig.
“Generally, foreign countries prohibit loans backed by a person’s income. Still, the need for pension loans is real in our country. it is not possible to stop them right now. However, we will study to regulate this matter in the future.”
The memorandum was signed by Minister S.Chinzorig, Deputy Governor of MongolBank B.Lkhagvasuren, CEO of State Bank B.Tsendsuren and Vice CEO of Khan Bank T.Javkhlan.
Starting from 16 January, pensioners will be able to take one-year loan with an interest rate of 12 percent. The loan amount will be equal to up to 70 percent of a borrower's pension. Out of 381.8 thousand people that currently receive pensions, 230.8 thousand have taken loans worth MNT 680.9 billion with a rate of 18 percent to be paid over 36 months.
Previously in January of 2017, Khan Bank and State Bank began offering 6-month loans with 15 percent rate. However, there are not many people who can afford such short-term loan. “Therefore, decreasing pension loan rate is our first step towards lessening financial burdens on retired individuals”, emphasized the Minister of Labor and Social Protection S.Chinzorig.
“Generally, foreign countries prohibit loans backed by a person’s income. Still, the need for pension loans is real in our country. it is not possible to stop them right now. However, we will study to regulate this matter in the future.”
The memorandum was signed by Minister S.Chinzorig, Deputy Governor of MongolBank B.Lkhagvasuren, CEO of State Bank B.Tsendsuren and Vice CEO of Khan Bank T.Javkhlan.
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