Article 3. Microfinance activities, procedures and conditions for granting micro-loans The Law on Microfinance Activities

Home / RLA / Article 3. Microfinance activities, procedures and conditions for granting micro-loans The Law on Microfinance Activities

1. Excluded by the Law of the Republic of Kazakhstan dated 03.07.2019 No. 262-VI (effective from 01.01.2020).

1-1. Microfinance activities include:

1) the activities of credit partnerships to provide micro-loans to their members;

2) the activities of pawnshops to provide micro-loans to individuals secured by movable property 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 activities of microfinance organizations 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.

1-2. Organizations engaged in microfinance activities (hereinafter referred to as microfinance organizations), in addition to the activities specified in paragraph 1-1 of this Article, are entitled to carry out the following operations:

1) attracting loans (with the exception of attracting money in the form of loans from citizens as an entrepreneurial 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 on issues related to the provision of microcredit;

4) the leasing of one's own property;

4-1) sale of own property;

5) implementation of leasing activities;

6) the implementation of special literature on the activities of microfinance organizations on any type of media;

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: acquisition of the rights to demand payment from the buyer of goods (works, services) with 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) the issuance of guarantees, sureties and other obligations to legal entities, providing for the fulfillment in monetary form.

1-3. A microfinance organization engaged in the provision of micro-loans to individuals secured by movable property intended for personal use may additionally carry out accounting, storage and sale of jewelry containing precious metals and precious stones.

1-4. Microfinance organizations are prohibited from carrying out other business activities not provided for by this Law.

1-5. A microfinance organization is not entitled to provide micro-loans to a citizen of the Republic of Kazakhstan from the date of posting an announcement on the completion of out-of-court bankruptcy or judicial bankruptcy proceedings in accordance with the procedure provided for by the Law of the Republic of Kazakhstan "On Restoration of Solvency and Bankruptcy of Citizens of the Republic of Kazakhstan", as well as to accept collateral from such persons in the form of collateral, guarantees and sureties under agreements on the provision of micro-loans in accordance with the Legislation of the Republic of Kazakhstan "On Restoration of Solvency and Bankruptcy of Citizens of the Republic of Kazakhstan". for five years.

The requirements of this paragraph do not apply to micro-loans provided by pawnshops secured by movable property that is not subject to state registration.

1-6. Microfinance organizations have the right to collect copies of identity documents of non-residents for the purposes provided for by this Law.

2. A microfinance organization has the right to provide micro-loans only if there are rules for providing micro-loans approved by its highest authority.

2-1. Excluded by the Law of the Republic of Kazakhstan dated 29.03.2016 No. 479-V (effective twenty-one calendar days after the date of its first official publication).

3. Excluded by the Law of the Republic of Kazakhstan dated 24.11.2015 No. 422-V (effective from 01.01.2016).

3-1. A microfinance organization has the right to provide micro-loans electronically in accordance with the procedure determined by the authorized body.

IZPI's note! Subparagraph 3-2 is provided for in the wording of 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).

3-2. An individual has the right to establish a voluntary waiver of receiving micro-loans free of charge or to withdraw it from a credit bureau, through the e-government web portal or the microfinance organization's informatization facilities integrated with services hosted on the e-government gateway.

IZPI's note! Subparagraph 3-3 is provided for in the wording of 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); (effective ninety calendar days after the date of its first official publication).

3-3. A microfinance organization is prohibited from providing micro-loans to an individual if there is information about the establishment of a voluntary refusal to receive micro-loans in his credit report received by the microfinance organization before making a decision to provide a micro-loan.

This prohibition does not apply to cases where a micro-loan is issued by a pawnshop.

A microfinance organization is prohibited from providing consumer micro-loans that are not secured by a pledge of property subject to registration to an individual without the consent of the spouse, the procedure for obtaining which and the minimum amount of consumer micro-credit for which consent is required are determined by a regulatory legal act of the authorized body.

It is prohibited for a microfinance organization to conclude an agreement on the provision of consumer micro-loans, not secured by collateral, with an individual whose credit report does not contain information about previously received micro-loans and (or) bank loans, without his personal presence in the microfinance organization. The minimum amount of a micro-loan under a consumer micro-loan agreement, which requires the personal presence of an individual, is determined by a regulatory legal act of the authorized body specified in paragraph 3 of Article 4 of this Law.

In the cases and in accordance with the procedure provided for by the regulatory legal act of the authorized body specified in paragraph 3 of Article 4 of this Law, a microfinance organization enters into an agreement on the provision of consumer microcredit, not secured by a pledge of property, with an individual only after receiving his consent to conclude such an agreement In the cases and in accordance with the procedure provided for by the regulatory legal act of the authorized body specified in paragraph 3 of Article 4 of this Law, a microfinance organization enters into an agreement on the provision of consumer microcredit, not secured by a pledge of property, with an individual only after receiving his consent to conclude such an agreement. If the specified agreement is concluded via the Internet, consent to its conclusion is issued at the credit bureau, on the e-government web portal, or through the microfinance organization's informatization facilities integrated with services hosted on the e-government gateway.

The requirement provided for in part four of this paragraph does not apply to cases of conce requirement provided for in part four of this paragraph does not apply to cases of concluding a micro-loan agreement, as well as transferring the amount of consumer micro-credit to the bank account of the seller (supplier) of goods, works and services for the purpose of purchasing goods, works and services, the receipt of which is confirmed by the borrower (buyer).

A microfinance organization transfers money to a borrower on a consumer micro-loan that is not secured by a pledge of propeA microfinance organization transferney to a borrower on a consumer micro-loan that is not secured by a pledge of property on the basis of a micro-loan agreement concluded via the Internet, the amount of which exceeds the minimum amount determined by the regulatory legal act of the authorized body specified in paragraph 3 of Article 4 of this Law, subject to the following requirements:

1) not earlier than twenty-four hours after signing the contract or increasing the amount of the micro-loan;

2) after the borrower has provided, upon expiration of the period specified in subparagraph 1) of this part, consent to receive a consumer micro-loan, issued in accordance with the requirements provided for by the regulatory legal act of the authorized body specified in paragraph 3 of Article 4 of this Law.

If several consumer micro-loans are provided to the borrower via the Internet, not secured by a pledge of property, the amount of which, as a result of addition, exceeds the minimum amount determined by the regulatory legal act of the authorized body specified in paragraph 3 of Article 4 of this Law, teveral consumer micro-loans are provided to the borrower via the Internet, not secured by a pledge of property, the amount of which, as a result of addition, exceeds the minimum amount determined by the regulatory legal act of the authorized body specified in paragraph 3 of Article 4 of this Law, the microfinance organization shall comply with the requirement provided for in subparagraph 1) of the seventh part of this paragraph, in accordance with internal documents, taking into acc

If a microfinance organization issues a micro-loan without complying with the requirement provided for in part three of this paragraph, the microfinance organization shall not have the right to require an individual to fulfill obligations under such a micro-loan. No later than three working days from the date of revealing the fact of issuing a micro-loan without complying with the requirements provided for in part three of this paragraph, the microfinance organization shall take the following measures:

decides to write off the client's debt on such a microcredit;

stops debt collection and claim-based work on such a micro-loan of the client;

makes adjustments to the credit history of the client in the credit bureaus by eliminating records of information on such a microcredit;

returns to the client the previously withheld (paid) amounts of remuneration and (or) penalties for such a microcredit.

The measures provided for in part ten of this paragraph shall apply to cases where a micro-loan is issued without complying with any of the requirements provided for in parts one, four, five, seven and eight of this paragraph, provided that the microfinance organization receives the procedural documents of the law enforcement agencies specified in part two of paragraph 3-4 of this article.

IZPI's note! The first part of paragraph 3-4 is provided for in the wording of 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).

3-4. From the moment of discovery of unlawful access to information constituting the secret of providing a micro-loan, its unlawful modification, the commission of unlawful actions by third parties or other illegal (fraudulent) actions with micro-loans of individuals, the microfinance organization shall inform the client and the authorized body about this within one working day, and take measures within two working days to eliminate the unlawful It takes measures to eliminate the consequences of such actions within ten working days.

IZPI's note! The first paragraph of the second part is amended by 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).

On the basis of a submission made (issued) by law enforcement agencies in accordance with the Criminal Procedure Code of the Republic of Kazakhstan on taking measures to eliminate the circumstances that contributed to the commission of a criminal offense, or a resolution recognizing an individual borrower as a victim of a criminal offense related to the fraudulent issuance of a microcredit, a microfinance organization no later than three calendar days:

suspends debt collection and claim-based work on such a micro-loan of the client;

suspends the accrual of remuneration and/or penalties for such a micro-loan of the client.

IZPI's note! The third part of paragraph 3-4 is amended by 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).

A microfinance organization, no later than ten working days from the date of receipt of a judicial act that has entered into force, which establishes the fact that a micro-loan was fraudulently issued to a client recognized as a victim in a criminal case as a result of illegal receipt and use by a third party of the client's identification funds, including when applying for a micro-loan through the use of remote software management for the remote provision of services to a microfinance organization or violation by a microfinance organization of the procedure for biometric identification or requirements established by a regulatory legal act of the authorized body to identify, record and analyze the facts of internal and external fraud, decides to write off the client's debt on the micro-loan, as well as measures to refund the client previously withheld (paid) amounts for such a microcredit.

3-5. A microfinance organization is prohibited from entering into a micro-loan agreement with an individual via the Internet without conducting biometric identification, the procedure for which is determined by the authorized body.

IZPI's note! Paragraph 3-5 is provided to be supplemented with Part two 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).

If a microfinance organization concludes a contract for the provision of a microcredit with an individual via the Internet without complying with the requirements set out in part one of this paragraph, the microfinance organization is not entitled to demand fulfillment of obligations under such a microcredit and, no later than three working days from the date of identification of the fact of the issuance of such a microcredit, takes the measures provided for in part ten, taking into account the requirements of part eleven of paragraph 3-3 of this article.

IZPI's note! Article 3 is provided to be supplemented by paragraph 3-6 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).

3-6. A microfinance organization is prohibited from providing micro-loans to conscripted military personnel for the period of their military service in the Armed Forces of the Republic of Kazakhstan, other troops and military formations if there is information about the conscription of such a serviceman for military service in his credit report received by the microfinance organization before making a decision on granting a micro-loan.

The exchange of information about conscripted military personnel, as well as their dismissal, is carried out by ensuring the interaction of information systems of government agencies and credit bureaus in accordance with the procedure determined by the authorized body in coordination with the Ministry of Defense of the Republic of Kazakhstan.

In the cases provided for in the second part of this paragraph, the collection, processing and use of personal data are carried out in accordance with the legislation of the Republic of Kazakhstan.

If a microfinance organization provides a micro-loan to a military serviceman, if there is information about the conscription of such a military serviceman in his credit report received by the microfinance organization before making a decision on granting a micro-loan, the microfinance organization has no right to demand fulfillment of obligations under such a micro-loan and no later than three working days from the date of revealing the fact of issuing such a micro-loan, it accepts the measures provided for in part ten of paragraph 3-3 of this Article.

4. Excluded by the Law of the Republic of Kazakhstan dated 03.07.2019 No. 262-VI (effective from 01.01.2020).

5. It is not allowed to index obligations and payments under a micro-loan agreement issued in tenge, linked to any currency equivalent.

6. A microfinance organization may not unilaterally change the terms of a micro-loan agreement, except in cases where they are improved for the borrower.

For the purposes of this paragraph, an improvement in the terms of a micro-loan agreement for a borrower is understood to mean:

a reduction or complete cancellation of the penalty (fine, penalty fee);

change in the direction of decreasing the remuneration rate under the micro-loan agreement;

deferral of payments on the principal debt and accrued remuneration under a micro-loan agreement for a period including the duration of military service and 60 days after its completion, without accrual of remuneration for a micro-loan.

If the microfinance organization applies improving conditions, the borrower is notified of a change in the terms of the micro-loan agreement in accordance with the procedure provided for in the micro-loan agreement.

The borrower has the right, within fourteen calendar days from the date of receipt of the notification, to waive the improving conditions applied by the microfinance organization in accordance with the procedure provided for in the microcredit agreement.

7. A microfinance organization is obliged to sell the following assets through bidding on an electronic trading platform for the sale of banking and microfinance assets:

collateral that was previously collateral for the fulfillment of obligations under a micro-loan agreement, which became the property of a microfinance organization as a result of foreclosure.;

property that has become the property of a microfinance organization as a result of receiving compensation from a microfinance organization in return for fulfilling an obligation under a micro-loan agreement.

The property specified in the first part of this paragraph must be sold by a microfinance organization within three years from the date of its transfer to the ownership of the microfinance organization, with the exception of the land owned by the microfinance organization. The term of sale of a land plot is determined taking into account the specifics provided for by the Land Code of the Republic of Kazakhstan.

The requirements set out in this paragraph do not apply to pawnshops.

The property specified in the first part of this paragraph, if the auction is declared invalid, may be sold through direct targeted sale in accordance with the rules of bidding on the electronic trading platform for the sale of banking and microfinance assets, approved by the regulatory legal act of the authorized body.

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

Constitution Law Code Standard Decree Order Decision Resolution Lawyer Almaty Lawyer Legal service Legal advice Civil Criminal Administrative cases Disputes Defense Arbitration Law Company Kazakhstan Law Firm Court Cases