The Agency for Regulation and Development of the Financial Market of the Republic of Kazakhstan published an explanatory note on pawnshop (lombard) microcredits, stating that a pawnshop loan does not automatically prevent a borrower from obtaining a bank loan or mortgage, but may affect the lender’s decision through the borrower’s credit history and overall debt burden. Banks and microfinance organisations assess an applicant’s financial position and repayment capacity, with credit history and debt load playing a key role; overdue arrears owed to a pawnshop reduce the likelihood of approval and are treated like other credits and microcredits when calculating debt burden. Pawnshops must submit information on such loans to credit bureaus. Where a microcredit is not repaid on time, the pawnshop must keep the pledged property for at least 30 days, during which the borrower can repay and recover the item; after that, the pawnshop may sell the collateral or transfer it into its ownership, ending the pledge and microcredit agreements, with termination evidenced by documents such as a sale act or a decision to take ownership and a repayment certificate.

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