The Agency for Regulation and Development of the Financial Market of the Republic of Kazakhstan has reminded citizens to carefully assess any decision to join a credit agreement as a co-borrower. It stressed that a co-borrower signs the bank loan contract together with the main borrower and is equally responsible for meeting the obligations under it. If the main borrower stops performing, the lender may require the co-borrower to repay the debt in full or in part. The agency noted that co-borrowers are often used in mortgage lending when the main borrower’s income is not sufficient for approval, because banks can take into account the combined income of both parties. It emphasized, however, that the co-borrower takes on the same obligations as the main borrower. In the event of arrears, the lender may apply recovery measures allowed by law, including debiting funds from the co-borrower’s accounts, enforcing against property and court action. The agency also distinguished co-borrowers from guarantors, noting that a co-borrower’s income is counted when determining the loan amount and that liability extends to the full contractual obligation, while a guarantor’s liability is limited by the terms of the guarantee. Consumers were advised to review contract terms carefully before agreeing to become a co-borrower, objectively assess their financial capacity if the main borrower faces repayment difficulties, and take into account that the obligation remains in force until the contract is fully performed regardless of the number of co-borrowers.

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