Central bank to omit certain finance leases from loan database

Mongol Bank will be omitting certain information regarding finance leases from its loan database if the debtor has paid their obligations before June 1, 2018 and have no prior history of overdue payments.

The omittance will only affect individuals who have taken out leases and were included in the loan database as not having made payments on time. If the individual has paid off all of their payments before June 1 and has no prior history of such overdue debt, the central bank will omit the negative credit information from their database.

In March 2018, the central bank omitted credit information of 41,085 individuals. Omittance from the loan database means that loans in question will not be included in any credit references issued by the central bank.

Although there are no laws restricting citizens and businesses with outstanding loans from applying for new loans, many banks and financial institutions avoid issuing loans to high risk borrowers. Mongol Bank’s omission of specific loans from its loan database will benefit the credit scores of borrowers looking to borrow again in the future.

In March 2017, Mongol Bank omitted over 25,000 loans if the loans had duration of less than one year, did not exceed an amount more than 12 times the minimum wage, and did not have a record of default.

The central bank underlined that it wants to improve financial inclusion and reach of financial services.

...If the individual has paid off all of their payments before June 1 and has no prior history of such overdue debt, the central bank will omit the negative credit information from their database...