Article 9-2. Conditions and procedure for debt settlement and measures applied to an insolvent borrower of the Microfinance Law

Home / RLA / Article 9-2. Conditions and procedure for debt settlement and measures applied to an insolvent borrower of the Microfinance Law

1. If there is a delay in fulfilling the obligation under the micro-loan agreement, but not later than ten calendar days from the date of its occurrence, the microfinance organization is obliged to notify the borrower in the manner and within the time limits stipulated by the micro-loan agreement, as well as through information facilities about:

1) the occurrence of a delay in fulfilling the obligation under the microcredit agreement and the need to make payments indicating the amount of overdue debt as of the date specified in the notification;

2) the right of an individual borrower under a micro–loan agreement to apply to a microfinance organization with an application provided for in paragraph 2 of this article.;

3) the consequences of the borrower's failure to fulfill its obligations under the microcredit agreement.

The microfinance organization has the right to involve a collection agency to notify the borrower.

2. Within thirty calendar days from the date of the delay in fulfilling the obligation under the microcredit agreement, the borrower – An individual has the right to visit a microfinance organization and (or) submit in writing, as well as through information facilities or in the manner provided for in the microcredit agreement, an application containing information about the reasons for the delay in fulfilling obligations under the microcredit agreement, income and other confirmed circumstances (facts) that determine his application for a micro-loan. changes to the terms of the microcredit agreement, including those related to:

1) a change in the direction of decreasing the remuneration rate or the remuneration value under the microcredit agreement;

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

1-1) a change in the direction of reducing the amount of the monthly payment by at least fifty percent of the payment established by the repayment schedule of the microcredit;

2) deferral of payment on the principal debt and (or) remuneration;

3) changing the repayment method or the order of repayment of debt, including repayment of the principal debt on a priority basis;

4) changing the term of the micro-loan;

5) forgiveness of overdue principal debt and (or) remuneration, cancellation of penalties (fines, penalties) on microcredit;

6) independent sale by the mortgagor of immovable property, which is the subject of mortgage, within the time limits established by the agreement of the parties;

7) the submission of compensation in return for the fulfillment of obligations under the agreement on the provision of microcredit by transferring the pledged property to the microfinance organization;

8) the sale of real estate, which is the subject of a mortgage, with the transfer of obligations under the contract for the provision of microcredit to the buyer.

IZPI's note! Paragraph 2 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).

The procedure for reviewing an individual borrower's application for amendments to the terms of a microcredit agreement, the list of documents attached to it, and the procedure for informing the authorized body of the results of the microfinance organization's review of the application are determined by a regulatory legal act of the authorized body.

3. Within fifteen calendar days after the date of receipt of the individual borrower's application, the microfinance organization shall consider the proposed amendments to the terms of the microcredit agreement in accordance with the procedure established by the regulatory legal act of the authorized body, and in writing, as well as through information facilities or in the manner provided for by the microcredit agreement, inform the individual borrower about one of the following solutions:

1) agreement with the proposed amendments to the terms of the microcredit agreement;

2) a counterproposal to amend the terms of the microcredit agreement;

3) the refusal to amend the terms of the micro-loan agreement, indicating a reasoned justification for the reasons for such refusal.

IZPI's note! Paragraph 3 is provided to be supplemented with parts two and three 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).

During the consideration of the individual borrower's application for amendments to the terms of the microcredit agreement, the microfinance organization has no right to demand early repayment of the microcredit.

Failure to reach a mutually acceptable solution between a microfinance institution and an individual borrower within thirty calendar days from the date of receipt of the microfinance institution's decision provided for in subparagraph 2) in the first part of this paragraph, it is considered a refusal to change the terms of the microcredit agreement. This period may be extended with the consent of both parties.

The microfinance organization decides to agree with the proposed amendments to the terms of the micro-loan agreement for a period of at least three months when submitting an application for amendments to the terms of the micro-loan agreement provided for in subitem 1-1) and (or) subitem 2). of the first part of paragraph 2 of this Article, the borrower is an individual:

1) related to socially vulnerable segments of the population in accordance with the Law of the Republic of Kazakhstan "On Housing Relations";

2) victims as a result of the circumstances that served as the basis for the introduction of a state of emergency.

The decision to agree to the proposed amendments to the terms of the microcredit agreement concluded with the borrower, an individual specified in subparagraph 1) of part two of this paragraph, is made subject to a decrease in the borrower's average monthly income calculated for the two months preceding the month of the borrower's application, by more than thirty percent compared with the average monthly income calculated for the twelve months preceding the month of the borrower's application or appointment of targeted social assistance

IZPI's note! The first part of paragraph 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).

4. The borrower, an individual, within fifteen calendar days from the date of receipt of the decision of the microfinance organization provided for in subparagraph 3) of paragraph one of paragraph 3 of this Article, or if a mutually acceptable decision is not reached to amend the terms of the microcredit agreement within the time period provided for in paragraph five of paragraph 3 of this Article, has the right to apply to the microfinance ombudsman with simultaneous notification microfinance organizations.

The Microfinance Ombudsman considers the individual borrower's application when providing evidence of his application to a microfinance organization and failure to reach a mutually acceptable decision with the microfinance organization on changing the terms of the microcredit agreement.

During the consideration by the microfinance ombudsman of an application from a borrower, an individual belonging to socially vulnerable segments of the population, in accordance with the Law of the Republic of Kazakhstan "On Housing Relations", under a contract for the provision of a micro–loan secured by a mortgage of immovable property that is a dwelling not related to entrepreneurial activity, foreclosure on mortgaged property is not allowed by filing a lawsuit in court or out of court.

5. In cases of dissatisfaction with the requirement provided for in subparagraph 1) of the first part of paragraph 1 of this Article, as well as the failure of the individual borrower under the microcredit agreement to exercise the rights provided for in paragraph 2 of this article, or the lack of agreement between the individual borrower and the microfinance organization to amend the terms of the microcredit agreement, the microfinance organization has the right:

1) consider the application of measures against the borrower.

The decision on the application of measures is made in accordance with the rules for the provision of microcredit;

2) transfer the debt for pre-trial collection and settlement to a collection agency.

The transfer of debt for pre-trial collection and settlement to a collection agency is allowed if there is a right of a microfinance organization in the contract for the provision of a micro-loan to attract a collection agency if the borrower is overdue in fulfilling obligations under the contract for the provision of a micro-loan.;

On the day of transfer of the debt for pre-trial collection and debt settlement, the microfinance organization notifies the borrower in the manner provided for in the microcredit agreement, as well as through information facilities indicating the name, location of the collection agency, telephone numbers of the collection agency for contacts with debtors.;

2-1) cede, in compliance with the requirements set out in Article 9-1 of this Law, the rights (claims) under the contract for the provision of microcredit to a person if the borrower is overdue in fulfilling a monetary obligation.:

under the agreement on the provision of a micro–loan to an individual secured by a mortgage of real estate - over one hundred and eighty consecutive calendar days;

under other agreements on the provision of micro–credit to an individual - for more than ninety consecutive calendar days.

IZPI's note! The fourth paragraph of subparagraph 2-1) is effective from 05/01/2026 in accordance with the Law of the Republic of Kazakhstan dated 06/19/2024 No. 97-VIII (text deleted).

The provisions of this subparagraph do not apply to cases where the procedure for restoring solvency, out–of-court or judicial bankruptcy is applied to a borrower who is a citizen of the Republic of Kazakhstan in accordance with the procedure provided for by the Law of the Republic of Kazakhstan "On Restoring Solvency and Bankruptcy of Citizens of the Republic of Kazakhstan";

3) apply the measures provided for by the legislation of the Republic of Kazakhstan and (or) the microcredit agreement, including filing a lawsuit with the court to recover the amount of debt under the microcredit agreement, as well as foreclose on mortgaged property out of court, except in cases provided for by the Law of the Republic of Kazakhstan "On Mortgage of Immovable Property", or in court;

4) file a claim with the court for declaring the borrower, an individual entrepreneur, a legal entity bankrupt in accordance with the legislation of the Republic of Kazakhstan.

6. A microfinance organization is prohibited from receiving services from third parties for pre-trial debt collection and settlement, as well as collection of information related to debt, except in cases where such services are provided to the microfinance organization by a collection agency and (or) a service company.

7. It is not allowed for a microfinance organization to conclude an agreement on pre-trial debt collection and settlement, as well as collecting information related to debt, with a collection agency in respect of an individual whose debt is secured by a mortgage on real estate, which is a dwelling.

8. During the period when the debt is in pre-trial collection and settlement with a collection agency, a microfinance organization may not:

file a claim with the court for debt collection;

to demand payment of remuneration for the period when the debt is in operation from the collection agency, as well as to charge a penalty (fine, fine) for late repayment of the principal debt and remuneration during the specified period.

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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