Kazakhstan plans to change how microloans issued by pawnshops against movable property for personal use are reflected in credit reports. This will allow borrowers to maintain a positive credit history, reports infohub.kz.
The Agency for Regulation and Development of the Financial Market (ARDFM) has proposed excluding from credit reports information on the number of days overdue for such microloans, the amount of overdue payments, the amount of penalties (fines and interest), and the date of the last payment. However, until the borrower's obligations are terminated and the loan agreement is in effect, the microloan will be shown in the credit history with the status "Active."
In the comparative table to the draft resolution, the ARDFM explains that such changes will allow borrowers to maintain a positive credit history. According to the regulator, this will expand citizens' opportunities to participate in state and social financing programs, where one of the conditions for receiving support is the absence of current overdue debt.
The agency also notes that pawnshop microloans are fully secured by pledged property that covers the creditor's claims. Therefore, overdue or non-repayment of such a loan, according to the document's developers, does not indicate the borrower's insolvency and should not negatively affect their credit history.
"When applying to a pawnshop, the borrower may initially have no intention of redeeming the pledged property. Pawnshops often accept jewelry that has lost value for the owner: wedding rings after divorce, outdated designs, gifted or inherited items, incomplete or damaged pieces, and found items. Thus, not redeeming such items is a conscious decision by the client," the ARDFM explained.
In December 2025, Madina Abylkassymova, head of the Agency for Regulation and Development of the Financial Market, reported that nearly 19,000 Kazakhs aged 18 to 21 have overdue debt of more than 90 days in microfinance organizations.
Earlier, Kazakhs with overdue loans received good news.