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

Home / RLA / 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. The amount of the payment made by the borrower under the microcredit agreement concluded with an individual, if it is insufficient to fulfill the borrower's obligation under the microcredit agreement, shall repay the borrower's debt in the following order:

1) outstanding principal debt;

2) remuneration arrears;

3) a penalty (fine, fine) in the amount determined by the agreement on the provision of microcredit;

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

5) remuneration accrued for the current payment period;

5-1) is excluded by the Law of the Republic of Kazakhstan dated 03.07.2019 No. 262-VI (effective from 01.01.2020);

6) the costs of the microfinance organization for obtaining execution.

The requirements set out in this paragraph do not apply to a micro-loan agreement concluded by a pawnshop.

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, penalty) for violation of the obligation to repay the amount of the 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 after ninety days The delay may not exceed 0.03 percent of the overdue payment amount for each day of delay., but not more than ten percent of the amount of the micro-loan issued for each year of the micro-loan 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.

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Republic of Kazakhstan

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