The Agency for Regulation and Development of the Financial Market of the Republic of Kazakhstan published guidance for retail borrowers on exercising due diligence before signing a microcredit agreement with a microfinance organisation (MFO), including checking that the MFO is licensed via the agency’s website and ensuring contract terms are clearly set out and within legal limits. The guidance highlights minimum disclosures that should be explicit in the agreement, including the microcredit amount and term, repayment schedule and method, interest rate and the annual effective interest rate capped at 46% (for short-term microcredits, 0.3% per day but not more than 179% per year), and late-payment penalties. It reiterates statutory limits on penalties, including a cap of 0.5% per day on overdue payment amounts during the first 90 days of delinquency and 0.03% per day thereafter, subject to an overall cap of 10% per year of the microcredit amount. Borrowers are reminded of their rights to review an MFO’s internal rules and tariffs, repay early without penalties or commissions, request a review of terms within 30 calendar days after becoming overdue (with supporting documents), and escalate unresolved disputes to the microfinance ombudsman. The agency also warns that paid add-on services (such as insurance or consulting) are often offered under separate contracts and can increase total repayments, and advises caution when accepting electronic agreements where tick-boxes may indicate consent to additional services and terms.

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