The Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market
How to choose the right loan?
A loan is a convenient financial tool if used properly. When deciding to take out a loan, carefully assess all risks. Before applying for a loan, it is necessary to:
• Calculate your financial capabilities, taking into account your income and expenses;
• Analyze your capacity considering the expected increase in loan-related expenses;
• Understand that obtaining a loan entails the obligation to repay the principal amount (the sum borrowed from the lender) within the contractually agreed terms, as well as to pay remuneration, commissions, and other fees for the use of the loan.
Do not forget about the debt-to-income ratio! Your monthly loan payment should not exceed 50% of your official income.
Determine the purpose of the loan and the repayment methods (annuity or differentiated).
Compare offers from several financial organizations.
Do not sign the loan agreement until you have thoroughly reviewed it.
Pay attention to the memorandum and the title page, where all contract terms are indicated: loan amount, term, interest rate, total repayment amount, and monthly payment date.
Clarify whether there are additional services or products such as insurance, and penalties for early loan repayment.
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...
How has the regulator strengthened its oversight of collection agencies in recent years?
Since 2017, the Agency has pursued a regulatory policy aimed at strengthening oversight of collection activities, improving the functioning of the debt collection market, and reducing unfair collection practices. Since 2017, the following regulatory measures have been introduced:...
Does a debtor have the right to record a conversation with a collector?
Yes. Under subparagraph 7) of paragraph 1 of Article 16 of the Law on Collection Activities, a debtor and/or their representative has the right to independently record interactions with employees of a collection agency using audio and/or video recording equipment.
