Microfinance and Credit Regulatory Authority Act 2026 · As enacted · Part VIII · Customer Protection
48. The loan agreement
Official English translation. Where it differs from the Sinhala or Tamil text, the Act itself says which text prevails.
Official translationFrom Department of Government Printing, unchanged
Any agreement to provide a loan or any other financial service entered into by a licencee with its customer shall-
be concise, easy to understand, and accurate;
be available in Sinhala, Tamil or English languages to the customer in his preferred language;
not include any terms and conditions which are unfair, misrepresented, exclude or restricts the liability of such licencee, excludes or restricts any right of the customer or prevents the applicability of any provision of this Act or any direction, directive or rule issued thereunder or any written law, for the time being in force;
include all terms and conditions subject to which money is lent or any other financial service is provided to the customer, and any amendment, modification made to such conditions shall not be enforceable before a court of law, unless the customer is notified in writing of such amendment or modification and such customer agrees in writing to the same; and
be explained to the customers by the licencee before entering into agreement, on its contents and financial implications, in his preferred language.
Any loan agreement or any guarantee or security to secure such loan, entered in contravention of the provisions of this Act or any direction, rule, directive or determination issued thereunder shall be null and void and shall not be enforceable before any court of law.
Part IX
Investigation of Offences
Part X
Offences and Penalties
Part XI
Finance
Part XII
General
Part XIII