The Agency for Regulation and Development of the Financial Market of the Republic of Kazakhstan released a consumer-facing explainer clarifying what it means to act as a co-borrower on a credit agreement and the practical consequences of joint liability. A co-borrower signs the loan contract alongside the borrower and shares responsibility for its performance, allowing a bank to seek full or partial repayment from the co-borrower if the borrower fails to pay. The guidance notes that co-borrowers are often used in mortgages where the borrower’s income is insufficient, since borrower and co-borrower incomes are combined for credit approval and loan sizing. It also highlights that a co-borrower’s responsibility is comparable to the borrower’s, including potential bank actions in case of arrears such as debiting funds from accounts, enforcing against property, or pursuing court action, and contrasts this with a guarantor whose income is not used in calculating the loan amount and whose obligation may be limited to a guarantee cap. The agency advises prospective co-borrowers to review contract terms closely, assess whether they could repay the loan if the borrower becomes unable to do so, and recognise that obligations continue until the contract is fully performed, including where there are multiple co-borrowers.

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