Article 7. Rights and obligations of a microfinance organization The Law on Microfinance Activities

Home / RLA / Article 7. Rights and obligations of a microfinance organization The Law on Microfinance Activities

1. A microfinance organization may:

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

1-1) assign the right (claim) under a contract for the provision of a microcredit to the person specified in paragraphs 4 and 5 of Article 9-1 of this Law;

2) request from the borrower (applicant) the documents and information necessary to conclude a micro-loan agreement and fulfill obligations under it, as defined by the rules for granting micro-loans;

2-1) at the request of the borrower, transfer a micro-loan to a third party through second-tier banks in order to pay for goods, works or services.;

3) exercise other rights established by this Law, other laws of the Republic of Kazakhstan and the agreement on the provision of microcredit.

2. A microfinance organization must:

1) in case of a change of location or name, notify the authorized body in writing, as well as borrowers (applicants) by publishing relevant information in two print media in Kazakh and Russian at the location of the microfinance organization, as well as at the legal address of the borrower (applicant), an individual, and at the location of the borrower (applicant) – a legal entity, or by notifying each borrower (applicant) in writing no later than thirty calendar days from the date of such changes;

1-1) in the event of a change in the composition of the participants (shareholders), notify the authorized body in writing about this and about the compliance of the participants (shareholders) with the requirements of paragraph 6 of Article 14 of this Law no later than ten calendar days from the date of such change.;

2) place a copy of the rules for granting micro-loans in a place accessible for review and familiarization by the borrower (applicant) of the microfinance organization, including on the microfinance organization's Internet resource, if available;

3) provide the applicant with complete and reliable information about payments related to the receipt, maintenance and repayment (refund) of the microcredit;

4) provide the applicant with draft repayment schedules calculated by various methods before concluding the microcredit agreement for familiarization and selection of the repayment method of the microcredit. It is mandatory that the borrower be provided with draft repayment schedules for the micro-loan, calculated in accordance with the methods for calculating regular payments on micro-loans issued by microfinance organizations to individuals, and the time bases for calculating remuneration for such micro-loans, established by a regulatory legal act of the authorized body, with the frequency specified in the micro-loan agreement, the following repayment methods:

the method of differentiated payments, in which the repayment of microcredit debt is carried out in decreasing payments, including equal amounts of payments on the principal debt and remuneration accrued for the period on the balance of the principal debt.;

the annuity payment method, in which the repayment of microcredit debt is carried out in equal installments throughout the term of the microcredit, including increasing payments on the principal debt and decreasing payments on remuneration accrued for the period on the balance of the principal debt. The amounts of the first and last payments may differ from the others.

A microfinance organization may propose additional draft repayment schedules for a micro-loan, calculated in accordance with the rules for granting micro-loans.

4-1) excluded by the Law of the Republic of Kazakhstan dated December 27, 2019 No. 291-VI (effective ten calendar days after the date of its first official publication);

5) inform the borrower (applicant) about his rights and obligations related to obtaining a micro-loan, as well as possible consequences in case of non-fulfillment of obligations under the micro-loan agreement;

5-1) provide the authorized financial monitoring body with information in accordance with the Law of the Republic of Kazakhstan "On Countering the Legalization (Laundering) of Proceeds from Crime and the Financing of terrorism";

6) to observe the secrecy of the provision of microcredit;

7) classify assets and contingent liabilities for granted micro-loans and create provisions (reserves) against them in accordance with the rules approved by the authorized body in coordination with the state body responsible for ensuring tax revenues and other mandatory payments to the budget.

The requirement established by this subparagraph does not apply to pawnshops.;

8) comply with prudential standards and other mandatory standards and limits, as well as the calculation methodology established by the authorized body;

8-1) comply with the calculation procedure and the limit value of the borrower's debt burden ratio of the microfinance organization, established by the regulatory legal act of the authorized body.

The requirement established by this subparagraph does not apply to pawnshops.;

IZPI's note! Subparagraph 9) 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).

9) submit financial and other reports to the National Bank of the Republic of Kazakhstan in accordance with the regulatory legal acts of the National Bank of the Republic of Kazakhstan;

IZPI's note! Paragraph 2 is provided to be supplemented with subparagraph 9-1) 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).

9-1) submit reports on the implementation of prudential standards and other mandatory standards and limits to the National Bank of the Republic of Kazakhstan in accordance with the regulatory legal acts of the National Bank of the Republic of Kazakhstan;

10) eliminate violations of the legislation of the Republic of Kazakhstan identified by the authorized body;

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

11-1) to refuse to provide a micro-loan in cases stipulated by the Law of the Republic of Kazakhstan "On Countering the Legalization (Laundering) of Proceeds from Crime and the Financing of terrorism";

11-2) provide, under a contract for the provision of a micro-loan to conscripts, a deferral of payment on the principal debt and remuneration for a period including the duration of military service and 60 days after its completion, without accrual of remuneration for a micro-loan in accordance with the procedure determined by the authorized body.

IZPI's note! The second part of subparagraph 11-2) 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).

The exchange of information about conscripted military personnel, as well as their dismissal, the presence or absence of a microcredit, and the granting of deferred payment on it 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.;

12) comply with other requirements established by this Law and other legislation of the Republic of Kazakhstan.

3. A microfinance organization may not:

1) unilaterally change the remuneration rates (except in cases of their reduction) and (or) the method and method of repayment of the microcredit;

1-1) provide a microcredit that is not related to the implementation of entrepreneurial activity to an individual who has overdue debts on a bank loan and (or) a microcredit for more than ninety calendar days.

The requirement established by this subparagraph does not apply to micro-loans issued for the purpose of repayment of a bank loan and (or) a micro-loan of an individual not related to the conduct of entrepreneurial activity on improving terms providing for a downward change in the remuneration rate and (or) the amount of periodic payments and (or) a downward change or a complete cancellation of penalties (fines, penalties), as well as micro-loans provided by pawnshops secured by movable property, which is not subject to mandatory registration;

IZPI's note! Subparagraph 1-2) 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).

1-2) establish and collect from the borrower (applicant) any payments, with the exception of remuneration and penalties (fines, penalties) for violating the obligation to repay the amount of the micro-loan and (or) payment of remuneration for a micro-loan not related to the conduct of business activities

IZPI's note! Paragraph 3 is provided to be supplemented with subitems 1-3) 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).

1-3) establish and collect from the borrower (applicant) any payments, with the exception of remuneration and penalties (fines, penalties) for micro-loans related to business activities;

2) require the borrower, who is an individual, to repay the amount of the micro-loan, penalty (fine, fine) and other payments for the early repayment of the micro-loan to the microfinance organization ahead of schedule.;

3) use and dispose of mortgaged items;

4) to demand payment of remuneration, penalties (fines, penalties) accrued upon the expiration of ninety consecutive calendar days of delay in fulfilling the obligation to repay any of the payments for the amounts of the principal debt and (or) remuneration for a micro–loan of an individual borrower not related to the conduct of entrepreneurial activity.

The requirement of this subparagraph does not apply to a micro-loan agreement if, as of the date of its conclusion, the amount of the principal debt was fully secured by a pledge of property subject to registration and (or) a pledge of money.;

5) to demand payment of remuneration, as well as penalties (fines, penalties) accrued after one hundred and eighty consecutive calendar days of delay in fulfilling the obligation to repay any of the payments for the amounts of the principal debt and (or) remuneration for a micro–loan of an individual borrower secured by a mortgage of immovable property not related to entrepreneurial activity.

6) conclude agreements providing for cooperation with private bailiffs to recover the amount of debt from the borrower under the microcredit agreement, as well as conclude an agreement (agreement) on the terms of execution of the enforcement document with a private bailiff affiliated with a microfinance organization in accordance with paragraph 2 of Article 12-1 of the Law of the Republic of Kazakhstan "On Limited Liability Companies and additional liability" and (or) paragraph 1 of Article 64 of the Law of the Republic of Kazakhstan "On Joint-Stock Companies";

7) apply for notarial actions to a notary who is an affiliated person of a microfinance organization in accordance with paragraph 2 of Article 12-1 of the Law of the Republic of Kazakhstan "On Limited and Additional Liability Partnerships" and (or) paragraph 1 of Article 64 of the Law of the Republic of Kazakhstan "On Joint Stock Companies";

8) extend the term of the microcredit agreement concluded with an individual without his consent and on terms that do not ensure the preservation or improvement of the terms 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.

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