Questions and answers from The Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market about public services and official procedures.
Is there a specific period within which the bank and the heirs must settle the borrower’s outstanding loan?
Pursuant to Article 1072-2 of the Civil Code of the Republic of Kazakhstan, an inheritance may be accepted within six months from the date the inheritance is opened. If the inheritance is opened on the date of the presumed death of a citizen or upon the citizen being declared dec...
Do heirs have to start making loan payments immediately, or must the inheritance be formalized first?
Creditors are entitled to bring claims against heirs after the heirs have accepted the inheritance. Accordingly, the legally significant circumstance is the acceptance of the inheritance and the formalization of inheritance rights. At the same time, the law does not prohibit thir...
Are debts written off if the borrower had life insurance?
If an insured event specified in the insurance agreement occurs, the insurance company makes an insurance payment in accordance with the procedure and on the terms provided for in the insurance agreement. The existence of an outstanding debt after the insurance payment does not,...
What happens to a loan if there is a co-borrower or a guarantor?
Pursuant to Article 287 of the Civil Code of the Republic of Kazakhstan, an obligation involving multiple parties, under which each creditor has the right to demand, and each debtor is obligated to perform, the obligation in full, is recognized as a joint and several obligation....
What actions does the bank take if no one makes the loan payments after the borrower’s death?
Questions concerning the repayment of outstanding loan debt by the heirs of a deceased borrower may be resolved either voluntarily or through court proceedings. If there are no heirs, banks are entitled to enforce their claims against the collateral if the loan was secured by col...
Do debts from loans pass on to heirs after a person dies?
Pursuant to paragraph 1 of Article 1040 of the Civil Code of the Republic of Kazakhstan, the estate includes property belonging to the deceased, as well as rights and obligations whose existence is not terminated by the deceased’s death. The estate may also include rights necessa...
What mistakes do borrowers most commonly make when taking out a mortgage?
The most common mistakes include underestimating one’s financial capabilities, focusing solely on the amount of the monthly payment without considering the total cost of the loan and the overall amount of interest paid, and overlooking additional expenses associated with purchasi...
What additional expenses, apart from the monthly payment, should be taken into account when purchasing a home with a mortgage?
When purchasing a home with a mortgage, it is important to consider not only the monthly loan payment but also additional expenses associated with acquiring and maintaining the property. These may include property appraisal costs, insurance, notarial and registration fees, taxes,...
Can a borrower lose their home due to a prolonged mortgage delinquency? What is the foreclosure procedure?
In the event of a prolonged failure to fulfill obligations under a mortgage loan, the legislation provides for the possibility of foreclosure on the mortgaged property. However, before such measures are taken, borrowers are provided with a number of tools to settle their debt. In...
What are the “gray” and “black” lists of droppers?
To combat dropper schemes, a centralized system for recording suspicious clients has been established. The system is operated by the Anti-Fraud Center of the National Bank, which receives information from banks, payment organizations, telecommunications operators, and law enforce...
What new requirements have been introduced for the remote issuance and reissuance of bank cards?
For the remote issuance and reissuance of bank cards, financial institutions are required to use two-factor authentication, including biometric identification. Bank cards may only be linked to Kazakhstan-registered mobile phone numbers, which reduces the risk of using foreign SIM...
What is “dropping” and what penalties are provided by law?
“Dropping” refers to the illegal provision, transfer, or use of access to a bank account, payment instrument, or identification tool, as well as the execution of unauthorized payments or money transfers, including on behalf of third parties, in exchange for financial compensation...
