The Agency for Regulation and Development of the Financial Market of the Republic of Kazakhstan published consumer guidance explaining what it means to act as a co-borrower on a credit agreement and the potential consequences if the primary borrower defaults. It notes that a co-borrower signs the loan contract alongside the borrower and shares joint responsibility for performance, allowing the bank to demand full or partial repayment from the co-borrower if the borrower fails to pay. The guidance highlights that co-borrowers are commonly used in mortgage lending when the borrower’s income is insufficient for bank approval, because the borrower’s and co-borrower’s incomes are combined to support the loan decision. It also stresses that a co-borrower’s liability is equivalent to the borrower’s and may expose the co-borrower to enforcement actions such as debiting funds from any accounts, seizing property, or court action. Unlike a guarantor, the co-borrower’s income is counted when calculating the loan amount and the co-borrower undertakes to repay the debt in full rather than within a capped guarantee limit. The Agency advises prospective co-borrowers to review contract terms carefully, assess their ability to repay if the borrower becomes insolvent, and note that obligations remain until the contract is fully performed even where there are multiple co-borrowers. It directs readers to Fingramota.kz for additional materials.

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