Car Loan Default in Kazakhstan: What Happens to the Car and Debt

In 2025, the auto loan portfolio of Kazakhstan's banks grew by 42.4% to reach 4 trillion tenge. Of that, about 240 billion tenge is overdue debt, and the share of stage-three loans hit 5.7%, according to infohub.kz.

One of the key risks is that after the car is sold, part of the debt may remain with the borrower.

The car is collateral for the bank and loses value over time. If the borrower stops paying, after the debt settlement procedure, the lender can sell the car.

The proceeds go toward paying off the debt. If the car is sold for less than the remaining loan amount and related costs, the unpaid difference stays with the borrower.

For example, with a debt of 8 million tenge and the car sold for 6.5 million tenge, the 1.5 million difference does not automatically disappear. The final amount depends on the contract terms, accrued interest, and costs of selling the collateral.

The main mistake is to judge affordability only by the monthly payment. You also need to add fuel or charging, mandatory insurance (OSGPO) and CASCO, maintenance and repairs, tires, taxes, parking, and other expenses.

Also, until the end of 2026, the debt-to-income ratio limit is temporarily not applied to certain auto loans. Starting January 1, 2027, banks will again have to take DTI into account when issuing such loans.

Before taking out a loan, it's useful to do a stress test: imagine a 20-30% drop in family income and check if you can still pay the bank, maintain the car, and cover essential expenses. It's advisable to have a financial cushion of at least six months.

Don't wait for a large overdue amount to accumulate. The borrower should immediately contact the bank with a request to change the loan terms. Options include restructuring, extending the term, deferment, or reducing the payment. In some cases, you can sell the collateral car yourself with the bank's consent. This may fetch a higher price and reduce the remaining debt.

The main rule: an affordable monthly payment does not mean the car fits the family budget. Before taking out a loan, check whether the budget can withstand a drop in income.