Article 24. Prohibition of micro-credit activities and advertising that does not correspond to the validity of the Law on Microfinance Activities

Home / RLA / Article 24. Prohibition of micro-credit activities and advertising that does not correspond to the validity of the Law on Microfinance Activities

1. Legal entities that are not registered as microfinance organizations, credit partnerships, pawnshops are not entitled to carry out entrepreneurial activities to provide micro-loans.

2. Microfinance organizations are prohibited from:

1) advertising of their activities that does not correspond to reality on the day of its publication;

2) advertising related to the offer of a micro-loan on terms that do not comply with the legislation of the Republic of Kazakhstan on microfinance activities.

IZPI's note! Article 24 is provided to be supplemented by paragraphs 2-1 and 2-2 in accordance with the Law of the Republic of Kazakhstan dated 30.06.2025 No. 205-VIII (effective sixty calendar days after the date of its first official publication).

2-1. When distributing and (or) placing advertisements containing information on the amount of remuneration for a micro-loan, a microfinance organization must indicate the annual effective remuneration rate.

2-2. When distributing advertisements containing information about the amount of remuneration for a micro-loan, including when publishing it, the annual effective remuneration rate is indicated in digital terms, in the same size and font design style as other remuneration rates. It is not allowed to indicate the annual effective remuneration rate in a font smaller than the one used when specifying other information in this advertisement.

3. The authorized body has the right to require a microfinance organization to make changes to an advertisement that does not correspond to reality, to terminate it and (or) to publish its refutation.

In case of failure to comply with this requirement within the time period established by the authorized body, the authorized body has the right to publish information about the inconsistency of the information contained in the advertisement, or to clarify them at the expense of the microfinance organization that published such advertising.

4. Legal entities that do not have a license to carry out microfinance activities are prohibited from advertising services that fall under the category of microfinance activities.

The Law of the Republic of Kazakhstan dated November 26, 2012 No. 56-V.

This Law regulates public relations related to the provision of micro-loans, establishes the specifics of the creation and reorganization of organizations engaged in microfinance activities, the legal status, activities of organizations engaged in microfinance activities, and also defines the specifics of state regulation of organizations engaged in microfinance activities, control and supervision of their activities.

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