The ruling Liberal Democratic Party may loosen restrictions on the consumer finance industry to provide more options for borrowers to obtain credit, according to a Diet lawmaker who is driving the initiative.
LDP member Masaaki Taira said he will lead a new panel that will start discussing the matter next month.
The government should consider scrapping the part of a law that limits credit to a third of a borrower's income, Taira said in a recent interview. He also wants to raise the ceiling on interest rates back to 29.2 percent from 20 percent to encourage consumer lenders to make more loans.