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Kazakhstan is set to introduce new restrictions on consumer loans and installment plans as financial regulators move to address the growing level of household debt. The measures aim to create a more sustainable borrowing environment for citizens.

Linking Debt to Income

The Agency for Regulation and Development of the Financial Market (ARDFM) is planning to cap the total debt of borrowers relative to their annual income. This move is a direct response to the increasing trend of consumer lending across the country.

ARDFM head Madina Abylkassymova stated that specific limits will also be applied to mortgages, car loans, and unsecured consumer loans. The agency is looking to establish a maximum allowable debt coefficient for borrowers.

Stricter Income Verification

To ensure accurate assessment of borrowers' financial capacity, the ARDFM intends to tighten requirements for income verification. While various data sources are currently used, the agency acknowledges that not all information is consistently reliable.

This includes strengthening the criteria for financial institutions' scoring models and the types of officially verifiable income. These changes are anticipated to take effect from January 1, 2027.

Regulating Installment Plans

Legislative amendments are also being prepared for the installment plan market. The ARDFM recognizes that installment products offered by non-financial institutions, such as marketplaces, have a credit-like nature and will be brought under regulatory oversight.

Past Measures and Future Outlook

The agency noted that previous measures implemented in 2025 have already shown success in slowing the growth of consumer lending, which had previously averaged 30% annually. Restrictions were placed on loans exceeding five years, and individuals with overdue payments longer than one day are now ineligible for new loans from Microfinance Organizations (MFOs), while banks face restrictions on debts over 30 days old. These steps are designed to prevent 'credit shopping,' where individuals take out new loans solely to pay off old ones.

Additionally, individual default rates have been introduced for banks, serving as an indicator of how well they assess borrowers' financial situations. The ARDFM also previously announced plans to reform the mortgage lending system by December 2025, with interest rates expected to vary based on the down payment amount, offering market rates for high-income earners and subsidized programs through 'Otbasy Bank' for low-income citizens.

This information was reported by Infohub.kz.