Article 3. Microfinance activities of the Law On Microfinance Activities

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1. Microfinance activities include:

1) the activity of a microfinance organization in providing micro-loans to individuals and (or) legal entities with or without collateral in an amount not exceeding twenty thousand times the monthly calculation index established for the relevant financial year by the law on the republican budget;

2) the pawnshop's activities in providing purposeless micro-loans to individuals against the pledge of movable property intended for personal use, as well as against the pledge of a vehicle intended for personal use, for a period of up to one year in an amount not exceeding eight thousand times the monthly calculation index established for the relevant financial year by the law on the republican budget;

3) the activity of a credit partnership in providing micro-loans to its participants with or without collateral in the amount determined by the internal rules of the credit partnership approved by the supreme body of the credit partnership.

2. A license to carry out microfinance activities provided for in paragraph 1 of this article shall be issued by the authorized body.

3. A microfinance organization, in addition to the activities specified in subparagraph 1) of paragraph 1 of this Article, may carry out the following operations:

1) attracting loans (except for attracting money in the form of loans from citizens as a business activity) from residents and non-residents of the Republic of Kazakhstan;

2) investing own assets in securities and other financial instruments;

3) provision of consulting services to the borrower on issues related to his business activities;

4) renting out (renting out) one's own property, as well as renting out (subletting) property hired for the purpose of microfinance activities;

5) sale of own property;

6) implementation of leasing activities;

7) performing the functions of a payment agent and a payment subagent;

8) conclusion of insurance contracts on behalf of and on behalf of insurance organizations that are residents of the Republic of Kazakhstan as an insurance agent;

9) performing the functions of an agent of the electronic money system in accordance with the legislation of the Republic of Kazakhstan;

10) factoring operations: financing for the assignment of a monetary claim with acceptance or non-acceptance of the risk of non-payment;

11) forfeiting operations (forfetting): payment of the debt obligation of the buyer of goods (works, services) by purchasing a promissory note without turnover for the seller;

12) issuing guarantees, sureties and other obligations to legal entities, providing for the fulfillment in monetary form;

13) development, implementation and support of specialized software used to automate the activities of microfinance organizations, or other software used in the activities of microfinance organizations;

14) provision of consulting services on issues related to the implementation of operations specified in the sub-paragraphs 6), 10), 11), 12) and 13) of this paragraph.

4. The pawnshop, in addition to the activities specified in subparagraph 2) of paragraph 1 of this Article, is entitled to carry out the operations specified in the subparagraphs 1), 2), 4), 5) and 8) of paragraph 3 of this Article, as well as accounting, storage and sale of jewelry containing precious metals and precious stones.

5. A credit partnership, in addition to the activities specified in subparagraph 3) of paragraph 1 of this Article, is entitled to carry out the operations specified in the subparagraphs 1), 2), 3), 4), 5), 6), 7), 8), 9), 10), 11) and 12) of paragraph 3 of this article, as well as to provide consulting services on issues related to the implementation of operations provided for in paragraphs 6), 7), 8), 10), 11) and 12) of paragraph 3 of this article.

6. Microfinance organizations, pawnshops, and credit partnerships are prohibited from carrying out other business activities not provided for by this Law.

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.

President

Republic of Kazakhstan

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