Article 4. Micro-credit agreement of the Law on Microfinance Activities

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1. A micro-loan agreement is concluded taking into account the requirements of the civil legislation of the Republic of Kazakhstan for the written form of the transaction.

2. Information on a micro-loan agreement concluded by a microfinance organization must be provided to a credit bureau with state participation on the terms defined by the legislation of the Republic of Kazakhstan on credit bureaus and the formation of credit histories.

2-1. A microfinance organization is not entitled to provide consumer microcredit, the amount of which does not meet the requirements established by the regulatory legal act of the authorized body.

The requirements set out in this paragraph do not apply to microcredit agreements concluded by a pawnshop or a credit partnership.

3. The regulatory legal act of the authorized body, taking into account the requirements established by the civil legislation of the Republic of Kazakhstan, approves the procedure for concluding a micro-loan agreement, including the requirements for the content, design of the agreement and its first page containing information on the full cost of the micro-loan (the amount of overpayment for the micro-loan, the subject of the micro-loan), the mandatory terms of the micro-loan agreement microcredit, as well as the form of the repayment schedule of the microcredit.

3-1. Excluded by the Law of the Republic of Kazakhstan dated 06/19/2024 No. 97-VIII (effective sixty calendar days after the date of its first official publication). 4. Excluded by the Law of the Republic of Kazakhstan dated 07/02/2018 No. 168-VI (effective from 01.01.2019).

4-1. When rights (claims) are assigned under a micro-loan agreement to a third party, the requirements and restrictions imposed by the legislation of the Republic of Kazakhstan on the relationship between the lender and the borrower under the micro-loan agreement extend to the legal relationship of the borrower with the third party to whom the rights (claims) have been assigned under the micro-loan agreement, and in the case of transfer of rights (requirements) under the agreement on the provision of a micro-loan to the trust management of the service company requirements and restrictions, The requirements imposed by the legislation of the Republic of Kazakhstan on the relationship between the lender and the borrower under the micro-loan agreement apply to the legal relationship between the borrower and the service company.

Violation by a third party to whom the rights (claims) have been assigned under the microcredit agreement, as well as by the service company of the requirements and restrictions imposed by the legislation of the Republic of Kazakhstan on the relationship between the lender and the borrower under the microcredit agreement, entails liability established by the laws of the Republic of Kazakhstan.

5. Excluded by the Law of the Republic of Kazakhstan dated 07/02/2018 No. 168-VI (effective from 01.01.2019).

6. If the terms of the performance of the contract for the provision of a micro-loan, not related to the conduct of entrepreneurial activity, secured by a mortgage of immovable property, which is a dwelling and (or) a land plot with a dwelling located on it, issued to an individual, or the issuance of a new micro-loan in order to repay a micro-loan, not related to the conduct of entrepreneurial activity, secured by a mortgage of immovable property, which is a dwelling and (or) a land plot with a dwelling located on it, issued to an individual, capitalization (summation) of overdue remuneration, penalties (fines, penalties) to the amount of the principal debt is not allowed.

7. When changing the terms of execution of a contract concluded with an individual for the provision of a micro-loan not related to the conduct of entrepreneurial activity and unsecured by a mortgage of immovable property, which is a dwelling and (or) a land plot with a dwelling located on it, or the issuance of a new micro-loan in order to repay a micro-loan of an individual not related to the conduct of entrepreneurial activity and unsecured mortgage of immovable property, which is a dwelling and (or) a land plot with a dwelling located on it, accrual of remuneration on overdue remuneration or penalties (fines, penalties) capitalized (summed up) to the amount of the principal debt is not allowed.

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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