Article 6. Ensuring the fulfillment by the borrower of obligations under the microcredit agreement of the Law on Microfinance Activities

Home / Laws / Article 6. Ensuring the fulfillment by the borrower of obligations under the microcredit agreement of the Law on Microfinance Activities

1. The fulfillment of obligations by the borrower under the microcredit agreement is ensured by the methods provided for by the legislation of the Republic of Kazakhstan or the microcredit agreement.

1-1. If the amount of the payment made by the individual borrower is insufficient to fulfill the obligations under the microcredit agreement, the specified amount repays the obligations of the individual borrower under the microcredit agreement in the following order:

1) outstanding principal debt;

2) remuneration arrears;

3) a penalty (fine, penalties) in the amount determined in accordance with paragraph 3 of this Article;

4) the amount of the principal debt for the current payment period;

5) remuneration accrued for the current payment period;

6) the costs of microfinance organizations for obtaining execution.

2. Excluded by the Law of the Republic of Kazakhstan dated 07/03/2019 No. 262-VI (effective from 01/01/2020).

3. The amount of the penalty (fine, penalties) for violation of the obligation to repay the amount of a microcredit and (or) payment of remuneration under a contract concluded with an individual for the provision of a microcredit not related to entrepreneurial activity may not exceed 0.5 percent of the overdue payment amount for each day of delay, but not more than more than ten percent of the amount of the issued microcredit for each year of the microcredit agreement.

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