Finance Minister Seeks to Cap Interest Rates, Drawing Debate on Loan Access
• Finance Minister plans to lower maximum interest rate to 35% APR, down from 47%, cutting off access to loans for millions • Lenders sending letters warning clients they may lose access to credit under new rules • Lenders lobbying government for concessions, claim rules will push borrowers to more expensive payday loans • Advocates counter that lower rates will protect vulnerable and say rates remain too high • Debate centers on if high rates fairly account for risk or exploit borrowers; capping rates may eliminate market