Kazakhstan has tightened its rules for issuing loans: banks will now more thoroughly scrutinize borrowers' financial standing, according to infohub.kz.
The National Bank has amended its regulation governing loan issuance. When assessing creditworthiness, banks will now consider a client's financial history over the past six months, and artificially inflating income through transfers between one's own accounts will no longer work.
When calculating income, salaries, pensions, scholarships, and social benefits will be taken into account. Monetary receipts must be recorded in at least two different months, after which the bank will determine the average monthly income. Control over borrowers' obligations has also been strengthened: loans, microloans, overdue debts, and certain written-off debts are now included in the calculation. If the size of payments is too large relative to earnings, a new loan may be refused. Additionally, banks will use the debt-to-income ratio (DTI).
As explained by Asan Akhmetzhan, Director of the Information and Communications Department and press secretary of the National Bank of Kazakhstan, the DTI reflects the size of a borrower's debt expressed in terms of their annual income. A high value of this indicator signals increased debt burden and a higher probability of insolvency. The initiative aims to promote responsible lending policies by banks, reduce risks of excessive household indebtedness, strengthen the stability of the financial system, and foster a more balanced credit structure.
For now, the DTI is only for monitoring purposes – no strict limits have been set for individuals. However, borrowers under 21, recipients of targeted social assistance, and clients showing signs of gambling addiction will be checked separately. The DTI restrictions do not apply to all types of loans: exceptions include educational loans, certain mortgage and auto loans.