The Agency for Regulation and Development of the Financial Market of the Republic of Kazakhstan published a consumer guidance note setting out the practical consequences of missed loan payments and the unified pre-trial process that allows borrowers to seek restructuring of overdue debt before disputes move to court. The note explains that banks and microfinance organisations can charge penalties and default interest of up to 0.5% per day on the overdue amount, report delinquency to credit bureaus, and may initiate court proceedings once arrears exceed 90 days. Under the unified pre-trial procedure in place since 2021, the creditor must notify the borrower within 10 days of the delinquency, the borrower has 30 days to request revised terms, and the financial institution must review the application within 15 working days and provide settlement proposals. Restructuring options cited include payment deferral, extending the loan term to reduce instalments, lowering the interest rate, partial forgiveness of penalties, and sale of pledged collateral. Since 2024, banks and microfinance organisations cannot require an advance payment to consider a restructuring request; if restructuring is refused, borrowers can escalate to the bank ombudsman or microfinance ombudsman and then submit a complaint to the agency. The agency also summarises enforcement pathways if no steps are taken to settle arrears, including transfer of debt (for arrears up to 90 days) to collectors, or court recovery via a private bailiff who can freeze accounts and property, withhold up to 50% of official income, and impose travel restrictions. From June 2024, additional borrower protection measures referenced include a ban on issuing new loans to individuals with more than 90 days of payment delinquency, mandatory biometric identification for online loans, and a simplified personal bankruptcy procedure.

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