The Agency for Regulation and Development of the Financial Market of the Republic of Kazakhstan reminded borrowers and lenders of the rules for early loan repayment and flagged legislative changes taking effect on 31 August 2025. From that date, penalty charges for early repayment will be allowed only for legal entities, while individuals will be able to prepay loans at any time without paying a penalty, including under contracts already in force. Early repayment may be full or partial, and partial prepayment can be recalculated either by shortening the loan term while keeping the monthly payment unchanged or by reducing the monthly payment while keeping the term unchanged. Financial institutions may set parameters for early repayment within the law, including minimum prepayment amounts, application notice periods, and calculation dates; borrowers are advised to agree the recalculation approach in advance and clarify debiting procedures, insurance premium refunds, and mortgage encumbrance removal. Until the changes take effect, banks may impose penalties for early repayment within the first six months for loans with a term of up to one year and within the first year for loans with a term exceeding one year; penalties paid before 31 August 2025 are not subject to recalculation or refund.

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