Kazakhstan is introducing a new borrower protection mechanism: starting in 2026, citizens will be able to withdraw from an unsecured loan within 14 days without penalties. This measure aims to reduce the risks of over-indebtedness among the population, reports infohub.kz.
The Agency for Regulation and Development of the Financial Market (ARDFM) has approved a regulation setting requirements for managing financial products at all stages of their life cycle, from planning to discontinuation. The document introduces behavioral supervision within the framework of banking legislation.
The key innovation concerns consumer loans: the borrower gets 14 calendar days from the moment of receiving the loan to return the entire amount without fines or penalties for early repayment. This rule applies to unsecured loans. The borrower is only obliged to pay remuneration for the actual period of using the funds, including interest on voluntary insurance if it was taken out.
Financial organizations are also required to inform clients of their right to decline a product or additional service without sanctions.
The new rules tighten advertising requirements: inappropriate advertising is prohibited, as is advertising that does not disclose risks. If an advertisement indicates the cost of the product, the amount of payments, or other expenses, it is necessary to fully disclose information about rates, commissions, and other costs, including the annual effective rate. In addition, it is forbidden to call a product free if additional conditions are required.
Financial organizations are obliged at the planning stage to identify and assess risks of harm to consumers, constantly monitor them, and take measures to reduce them. A digital passport is created for each product with characteristics, rates, commissions, risks, and target audience. Particular attention is paid to testing products before launch: if testing reveals an increased behavioral risk, the product is refined or withdrawn from sale.
The regulation comes into force on October 12, 2026. Earlier it was reported that Kazakhstan is tightening the rules for banks, microfinance, and insurance organizations: they are now obliged to ensure that the product offered to the client is indeed suitable for them.