Agency for Regulation and Development of the Financial Market of the Republic of Kazakhstan explains how the debt burden ratio is calculated and the 0.5 cap for borrowers

The Agency for Regulation and Development of the Financial Market of the Republic of Kazakhstan published an explainer on the debt burden ratio used by banks and microfinance organisations to assess a borrower’s financial position and decide whether to approve or refuse a loan. It outlines that a higher ratio signals a higher risk of repayment difficulties and can reduce the likelihood of credit approval. The agency describes the ratio as the total amount of monthly payments on all credit obligations divided by the borrower’s average monthly income. It notes that mandatory payments include mortgages, auto loans, consumer loans, microcredits, and credit card limits regardless of whether they are used, while income is assessed over the last six months and must be official and documented (such as salary and pension). The explainer also restates the legislated cap for individuals borrowing from banks and microfinance organisations at 0.5, meaning monthly payments should not exceed half of monthly income, and highlights potential consequences of excessive debt load, including refusals of new credit, higher interest rates, arrears, deterioration of credit history, and debt-trap risk.