For the purposes of this Law, the following basic concepts are used:
1) excluded by the Law of the Republic of Kazakhstan dated 03.07.2020 № 359-VI (
effective from 01.01.2021);
1-1) electronic trading platform for the sale of banking and microfinance assets - an
Internet resource that provides infrastructure for participants to conduct trades, operating in
accordance with the Law of the Republic of Kazakhstan "On state regulation, control and
supervision of the financial market and financial organizations";
2) credit dossier - documents and information generated by an organization that carries
out microfinance activities for each borrower;
3) a borrower - an individual or legal entity who has entered into a microcredit agreement
with an organization engaged in microfinance activities;
4) a microcredit - money provided by an organization carrying out microfinance activities
to the borrower in the national currency of the Republic of Kazakhstan in the amount and in
the manner determined by this Law, on the terms of payment, urgency and repayment;
5) an organization engaged in microfinance activities - a microfinance organization, credit
partnership, pawnshop, carrying out activities for provision of microcredits;
6) excluded by the Law of the Republic of Kazakhstan dated 02.01.2021 № 399-VI (
effective from 01.01.2021);
6-1) a major participant in an organization engaged in microfinance activities - an
individual or legal entity that owns directly or indirectly ten or more percent of the shares in
the authorized capital or voting (minus preferred) shares of an organization engaged in
microfinance activities;
6-2) spotless business reputation - absence of unremoved or outstanding criminal record,
including absence of legally binding court order on the application of criminal punishment in
the form of deprivation of the right to hold an executive position of a financial institution,
banking and (or) insurance holding and to be a major participant (major shareholder) of a
financial institution for life, as well as absence of relations with third parties (control and
influence of third parties), whose actions contributed to the legalization (laundering) of
proceeds from crime, financing of terrorism and financing of the proliferation of weapons of
mass destruction, based on information from the financial monitoring authority;
7) an applicant - an individual or legal entity that has submitted an application to a
microfinance organization for a microcredit;
7-1) service company - a subsidiary of the bank that acquires dubious and hopeless assets
of a parent bank, a collection agency that shall have the rights under a trust management
agreement (requirements) under bank loan agreements and/or microloan agreements (
hereinafter referred to as the trust agreement) concluded with the person referred to in the first
part of paragraph 4 of Article 36-1 of the Law of the Republic of Kazakhstan "On banks and
banking activities in the Republic of Kazakhstan" and (or) the first part of paragraph 5 of
Article 9-1 of this Law, powers of trust management of rights (requirements) under bank loan
agreements and (or) microloan agreements, including amendments to the terms of the bank
loan agreement and (or) an agreement on the provision of a microloan, on the representation
of the interests of the person with whom the trust agreement has been concluded, in court, on
the receipt of money from the debtor and (or) other property and other powers provided for by
this Law, other Laws of the Republic of Kazakhstan and a trust agreement;
7-2) consumer microcredit - a microcredit that is not a microcredit secured by a mortgage
of real estate, provided to an individual for the purchase of goods, works, services and (or)
other purposes not related to the implementation of entrepreneurial activities;
8) an authorized body - a state body exercising state regulation, control and supervision of
the financial market and financial organizations.
Footnote. Article 1 as amended by the Law of the Republic of Kazakhstan dated
03.07.2019 № 262-VI (shall be enforced from 01.01.2020); dated 03.07.2020 № 359-VI (
effective from 01.01.2021); dated 02.01.2021 № 399-VI (effective from 01.01.2021); dated
04.07.2022 № 133-VII (shall enter into force upon expiry of sixty calendar days after the day
of its first official publication); dated 19.06.2024 № 97-VIII (comes into force sixty calendar
days after the date of its first official publication); dated 19.09.2025, № 219-VIII (effective
sixty calendar days after the date of its first official publication).

Footnote. The title of Article 3, as amended by the Law of the Republic of Kazakhstan
dated 03.07.2019 № 262-VI (shall be enforced from 01.01.2020).
1. is excluded by the Law of the Republic of Kazakhstan dated 03.07.2019 № 262-VI (
shall be enforced from 01.01.2020).
1-1. Microfinance activities include:
1) the activities of credit partnerships to provide microcredits to their participants;
2) the activity of pawnshops on the provision of microcredits to individuals on the
security of movable property intended for personal use, for a period of up to one year in an
amount not exceeding eight thousand-fold monthly calculation index established for the
corresponding financial year by the law on the republican budget;
3) the activities of microfinance organizations to provide microcredits to individuals and (
or) legal entities with or without collateral in an amount not exceeding twenty thousand fold
monthly calculation index established for the corresponding financial year by the law on the
republican budget.
1-2. Organizations engaged in microfinance activities (hereinafter referred to as
microfinance organizations), in addition to the activities specified in paragraph 1-1 of this
article, are entitled to carry out the following operations:
1) attracting loans (except for attracting money in the form of a loan from citizens as
entrepreneurial activity) from residents and non-residents of the Republic of Kazakhstan;
2) investing own assets in securities and other financial instruments;
3) provision of consulting services on the issues related to the provision of microcredits;
4) to lease (rent) own property;
4-1) sale of own property;
5) implementation of leasing activities;
6) sale of special literature on the activities of microfinance organizations on any types of
information carriers;
7) performance of the functions of a paying agent and a paying subagent;
8) conclusion of insurance contracts on behalf of and at the instruction of insurance
organizations - residents of the Republic of Kazakhstan as an insurance agent;
9) performance of the functions of an agent of the electronic money system in accordance
with the legislation of the Republic of Kazakhstan;
10) factoring operations: the acquisition of rights to claim payment from the buyer of
goods (works, services) with the acceptance of the risk of non-payment;
11) forfeiting operations (forfeiting): payment of the promissory note of the buyer of
goods (works, services) by purchasing a promissory note without recourse;
12) issuance to legal entities of guarantees, sureties and other obligations requiring
execution in monetary form.
1-3. A microfinance organization that provides microcredits to individuals secured by
movable property intended for personal use has the right to additionally register, store and sell
jewelry containing precious metals and precious stones.
1-4. Microfinance organizations are prohibited from carrying out other entrepreneurial
activities not provided for by this Law.
1-5. A microfinance organization may not provide microcredits to a citizen of the
Republic of Kazakhstan from the date of placement of an announcement on completion of an
out-of-court bankruptcy procedure or a judicial bankruptcy procedure as prescribed by the
Law of the Republic of Kazakhstan “On the restoration of solvency and bankruptcy of
citizens of the Republic of Kazakhstan”, nor may it accept security from such persons in the
form of a pledge , guarantees and sureties under microcredit agreements for five years.
The requirements of this paragraph shall not apply to microcredits provided by pawnshops
secured by movable property not subject to state registration.
1-6. Microfinance organizations shall have the right to collect copies of identity
documents of non-residents for the purposes provided for by this Law.
2. Microfinance organization shall have the right to extend microcredits only in existence
of the rules of extension of microcredits, confirmed by its superior body.
2-1. Is excluded by the Law of the Republic of Kazakhstan dated 29.03.2016 № 479-V (
shall be enforced upon expiry of twenty one calendar days after the day its first official
publication).
3. Is excluded by the Law of the Republic of Kazakhstan dated 24.11.2015 № 422-V (
shall be enforced from 01.01.2016).
3-1. A microfinance organization has the right to provide microcredits electronically in
the manner determined by the authorized body.
3-2. An individual may establish a voluntary refusal to receive microloans free of charge
or withdraw it at a credit bureau, via the e-government web portal or the information systems
of a microfinance organisation integrated with the services hosted on the e-government
gateway.
3-3. A microfinance organisation shall be prohibited from granting microloans to an
individual if there is information in their credit report, obtained by the microfinance
organisation prior to making a decision on granting a microloan, indicating that they have
voluntarily refused to receive microloans.
This prohibition shall not apply to cases where a microloan is issued by a pawnshop.
A microfinance organisation shall be prohibited from granting consumer microloans that
are not secured by property subject to registration to an individual without the consent of their
spouse. The procedure for obtaining such consent and the minimum amount of the consumer
microloan for which consent is required shall be established by a regulatory legal act of the
authorised body.
A microfinance organisation may not conclude a contract for granting a consumer
microloan not secured by collateral with an individual whose credit report does not contain
data on previously obtained microloans and/or bank loans without the individual being
physically present at the microfinance organisation. The minimum amount of a microloan
under a consumer microloan agreement, for the conclusion thereof the personal presence of a
natural person is required, shall be established by a regulatory legal act of the authorised body
referred to in paragraph 3 of Article 4 hereof.
Where and in the manner prescribed by the regulatory legal act of the authorised body
referred to in paragraph 3 of Article 4 hereof, a microfinance organisation shall enter into a
contract for granting a consumer microloan not secured by collateral with an individual only
after obtaining his or her consent to enter into such a contract. Should the aforementioned
agreement be concluded via the Internet, consent to its conclusion shall be formalised at a
credit bureau, on the e-government web portal, or via the microfinance organisation's IT
facilities integrated with the services hosted on the e-government gateway.
The requirement set forth in part four of this paragraph shall not apply to cases where a
microloan agreement is concluded and the amount of the consumer microloan is transferred to
the bank account of the seller (supplier) of goods, works and services for the purpose of
purchasing goods, works and services, the receipt thereof is confirmed by the borrower (buyer
).
A microfinance organisation shall transfer money to a borrower under a consumer
microloan not secured by collateral based on a microloan agreement concluded via the
Internet, the amount thereof exceeding the minimum amount set by the regulatory legal act of
the authorised body indicated in paragraph 3 of Article 4 hereof, subject to the following
requirements:
1) no earlier than twenty-four hours after signing the agreement or increasing the
microloan amount;
2) after the borrower has given their consent, upon expiry of the period specified in
sub-paragraph 1) of this part, to receive a consumer microloan, formalised in line with the
requirements set out in the regulatory legal act of the authorised body referred to in paragraph
3 of Article 4 hereof.
When several consumer microloans, unsecured by collateral, are provided to a borrower
via the Internet, and the total amount of these loans exceeds the minimum amount set by the
regulatory legal act of the authorised body referred to in paragraph 3 of Article 4 hereof, a
microfinance organisation shall observe the requirement prescribed in sub-paragraph 1) of
part seven of this paragraph, pursuant to internal documents, with due regard to the
requirements established by the regulatory legal act of the authorised body mentioned in
paragraph 3-1 of this article.
The requirements envisaged in parts one, five and seven of this paragraph shall not apply
to cases where the amount of a consumer microloan is transferred to the bank account of the
seller (supplier) of goods, works and services for the purpose of purchasing goods, works and
services, the receipt of which is confirmed by the borrower (buyer) and (or) the creditor for
the purpose of repaying the borrower's microloan debt received from the same microfinance
organisation.
Should a microfinance organisation issue a microloan without observing the requirement
prescribed in part three of this paragraph, the microfinance organisation shall not be entitled
to demand that the individual fulfil their obligations under such microloan. No later than three
working days from the date of discovery of the fact that a microloan was issued without
complying with the requirement set forth in part three of this paragraph, the microfinance
organisation shall take the following measure:
decides to write off the customer's debt on such a microloan;
terminates debt collection and claims and litigation work on such a microloan of the
customer;
makes adjustments to the customer's credit history in credit bureaus by removing records
of the data on such a microloan;
refunds to the customer the previously withheld (paid) amounts of remuneration and (or)
penalties on such a microloan.
The measures envisaged in part ten of this paragraph shall apply to cases where a
microloan is issued without meeting any of the requirements set out in parts one, four, five,
seven and eight of this paragraph, provided that the microfinance organisation receives
procedural documents from law enforcement agencies as specified in part two of paragraph 3-
4 of this article.
3-4. Upon finding unlawful access to information constituting a microloan secret, its
unlawful alteration, unlawful actions by third parties, or other illegal (fraudulent) actions
involving microloans to individuals, the microfinance organisation shall, within one working
day, inform the customer and the authorised body thereof, take measures to eliminate the
unlawful actions within two working days, and take measures to eliminate the consequences
of such actions within ten working days.
Based on a submission made (issued) by law enforcement agencies under the Code of
Criminal Procedure of the Republic of Kazakhstan to take measures to eliminate the
circumstances that contributed to the commission of a criminal offence, or a ruling
recognising the borrower – an individual – as a victim of a criminal offence related to the
fraudulent issuance of a microloan, within three calendar days, the microfinance organisation
shall:
suspenses debt collection and claims and litigation work on such a client's microloan;
suspenses the accrual of remuneration and (or) penalties on such a client's microloan.
No later than ten working days from the date of receipt of a legally binding court order
establishing that a microloan was fraudulently issued to a customer recognised as a victim in
a criminal case as a result of the unlawful acquisition and use of the customer's identification
details by a third party, including when applying for a microloan using remote management
software for the remote provision of services by a microfinance organisation, or when a
microfinance organisation breaches the procedure for biometric identification or the
requirements for identification established by a regulatory legal act of the authorised body,
recording and analysing internal and external fraud, a microfinance organisation shall decide
to write off the customer's microloan debt and takes measures to return to the customer the
amounts previously withheld (paid) under such microloan.
3-5. A microfinance organization is prohibited from concluding an agreement on the
provision of a microloan with an individual via the Internet without conducting his biometric
identification, the procedure for which is determined by the authorized body.
Should a microfinance organisation enter into a microloan agreement with an individual
via the Internet without complying with the requirement set forth in the first part of this
paragraph, the microfinance organisation shall not be entitled to demand the fulfilment of
obligations under such a microloan and shall, no later than three working days from the date
of discovery of the fact of the issuance of such a microloan, take the measures stipulated in
part ten, considering the requirements of part eleven of paragraph 3-3 of this article.
3-6. Microfinance organisations shall be prohibited from providing microloans to military
personnel serving in the Armed Forces of the Republic of Kazakhstan, other troops and
military formations if there is any information on the conscription of such a military
personnel for fixed-term military service in his/her credit report received by the microfinance
organisation prior to making a decision on granting a microloan.
The exchange of information on military personnel called up for fixed-term military
service, as well as their discharge, shall be effected via the interaction of the information
systems of public authorities and credit bureaus under the procedure established by the
authorised body in agreement with the Ministry of Defence of the Republic of Kazakhstan.
Where specified in the second part of this paragraph, the collection, processing and use of
personal data shall be performed under the laws of the Republic of Kazakhstan.
Where a microfinance organisation grants a microloan to a conscripted military
serviceman and there is information on the conscription of such a military serviceman for
conscripted military service in his/her credit report received by the microfinance organisation
prior to the decision to grant the microloan, the microfinance organisation shall not be entitled
to demand the fulfilment of obligations under such a microloan and shall, no later than three
working days from the date of revealing the fact of issuing such a microloan, take the
measures envisaged in part ten of paragraph 3-3 of this article.
4. Is excluded by the Law of the Republic of Kazakhstan dated 03.07.2019 № 262-VI (
shall be enforced from 01.01.2020).
5. It is not allowed to index the obligation and payments under the agreement on granting
a microcredit issued in tenge with reference to any currency equivalent.
6. A microfinance organization has no right to change the terms of the agreement on the
provision of a microloan unilaterally, except in cases of their improvement for the borrower.
For the purposes of this paragraph, improving the terms of the agreement on the provision
of a microloan for the borrower means:
a downward change or complete cancellation of a penalty (fine, penalty);
a downward change in the rate of remuneration under the agreement on the provision of a
microloan.
deferment of payments on the principal debt and accrued interest under the microcredit
agreement for a period that includes the period of compulsory military service and 60 days
after its completion, without accrual of interest on the microcredit.
If the microfinance organization applies improving conditions, the borrower is notified of
the change in the terms of the microcredit agreement in the manner prescribed in the
microcredit agreement.
The borrower has the right, within fourteen calendar days from the date of receipt of the
notification, to refuse, in the manner prescribed by the microcredit agreement, the improving
conditions applied by the microfinance organization.
7. The microfinance organization is obliged to sell the following property by holding an
auction on the electronic trading platform for the sale of banking and microfinance assets:
collateral property that previously served as security for the fulfillment of obligations
under the microcredit agreement, which has become the property of the microfinance
organization as a result of foreclosure;
property that has become the property of the microfinance organization as a result of the
receipt by microfinance organization of the compensation in exchange for the fulfillment of
the obligation under the microcredit agreement.
The property specified in part one of this paragraph must be sold by the microfinance
organization within three years from the date of its transfer to the ownership of the
microfinance organization, with the exception of a land plot owned by the microfinance
organization. The term for the sale of a land plot is determined taking into account the
features stipulated by the Land Code of the Republic of Kazakhstan.
The requirements established by this paragraph do not apply to pawnshops.
The property specified in part one of this paragraph, in the event of the auction being
declared invalid, may be sold through a direct address sale in accordance with the rules for
the trades on the electronic trading platform for the sale of banking and microfinance assets,
approved by the regulatory legal act of the authorized body.
Footnote. Article 3 as amended by the Laws of the Republic of Kazakhstan dated
16.05.2014 № 203-V (shall be enforced upon expiry of six months after the day its first
official publication); dated 24.11.2015 № 422-V (the order of enforcement see Art.2); dated
29.03.2016 № 479-V (shall be enforced upon expiry of twenty one calendar days after the day
its first official publication); dated 24.05.2018 № 156-VI (shall be enforced upon expiration
of ten calendar days after the date of its first official publication); 02.07.2018 № 168-VI (shall
be enforced dated 01.08.2018); dated 03.07.2019 № 262-VI (shall be enforced from
01.01.2020); dated 02.01.2021 № 399-VI (effective from 01.01.2021); dated 04.07.2022 №
133-VII (shall enter into force upon expiry of sixty calendar days after the day of its first
official publication); dated 30.12.2022 № 179-VII (shall be enforced sixty calendar days after
the date of its first official publication); dated 11.12.2023 № 44-VIII (effective sixty calendar
days after the date of its first official publication); dated 19.06.2024 № 97-VIII ((for the
procedure of implementation, see art. 2); № 205-VIII of 30.06.2025 (shall be enacted sixty
calendar days after the date of its first official publication).

1. An agreement on provision of microcredit is concluded taking into account the
requirements of the civil legislation of the Republic of Kazakhstan to the written form of the
transaction.
2. Information on agreement on extension of microcredit, concluded by microfinance
organization shall be subject to mandatorily provision to credit bureau with the state
participation on conditions, determined the legislation of the Republic of Kazakhstan on
credit bureau and formation of credit histories.
2-1. A microfinance organization has no right to provide a consumer microloan, the
amount of which does not meet the requirements established by the regulatory legal act of the
authorized body.
The requirements established by this paragraph do not apply to microloan agreements
concluded by a pawnshop or credit union.
3. The regulatory legal act of the authorized body, with regard to the requirements
established by the civil legislation of the Republic of Kazakhstan, shall approve the procedure
for concluding a micro-loan agreement, including requirements for the content, form of the
agreement and its first page containing information on the full microloan value (the amount of
overpay on the microloan, the subject of the microloan), mandatory terms of the microloan
agreement, as well as the form of the microcredit repayment schedule.
3-1. Excluded by the Law of the Republic of Kazakhstan dated 19.06.2024 № 97-VIII (
enters into force sixty calendar days after the date of its first official publication).
4. Excluded by the Law of the Republic of Kazakhstan dated 02.07.2018 № 168-VI (shall
be enforced dated 01.01.2019).
4-1. When assigning rights (requirements) under a microloan agreement to a third party,
the requirements and restrictions imposed by the legislation of the Republic of Kazakhstan on
the creditor's relationship with the borrower under the microloan agreement extend their
effect to the borrower's legal relationship with the third party to which the rights shall be
assigned (requirements) under the microloan agreement, and in case of transfer of rights (
requirements) under the agreement on the provision of microloan to the trust management of
the service company, the requirements and restrictions imposed by the legislation of the
Republic of Kazakhstan on the relationship of the creditor with the borrower under the
agreement on the provision of microcredit extend their effect to the legal relations of the
borrower with the service company.
Violation by a third party to whom the rights (requirements) shall be assigned under the
microloan 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 of the creditor
with the borrower under the microloan agreement, entails liability established by the Laws of
the Republic of Kazakhstan..
5. Excluded by the Law of the Republic of Kazakhstan dated 02.07.2018 № 168-VI (shall
be enforced dated 01.01.2019).
6. When changing conditions for execution of an agreement on granting a microloan
unrelated to pursuit of entrepreneurial activities, 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 when issuing a new microloan in order to repay the microloan, unrelated to
pursuit of entrepreneurial activities, 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, the
capitalization (summation) of overdue remuneration, forfeits (fines, penalties) to the amount
of the principal debt shall not be allowed.
7. When changing conditions for execution of an agreement concluded with an individual
for a microloan unrelated to pursuit of entrepreneurial activities and unsecured by a mortgage
of immovable property that is a dwelling and (or) a land plot with a dwelling located on it, or
when issuing a new microloan in order to repay the microloan of an individual that is not
associated with entrepreneurial activities and is not secured by a mortgage of immovable
property that is a dwelling and (or) a land plot with a dwelling located on it, crediting of
remuneration on capitalized (summed up) overdue remuneration, forfeits (fines, penalties) to
the amount of the principal debt shall not be allowed.
Footnote. Article 4 as amended by the Laws of the Republic of Kazakhstan dated
24.11.2015 № 422-V (shall be enforced from 01.01.2016); dated 06.05.2017 № 63-VI (shall
be enforced upon expiry of twenty one calendar days after the day its first official publication
); the Law of the Republic of Kazakhstan № 168-VI dd. 02.07.2018 (shall be enforced dated
01.01.2019); dated 03.07.2019 № 262-VI (shall be enforced from 01.01.2020); dated
24.05.2021 № 43-VII (enforcement Article 2); dated 04.07.2022 № 133-VII ((shall enter into
force upon expiry of sixty calendar days after the day of its first official publication); dated
12.07.2022 № 138-VII ((shall enter into force upon expiry of sixty calendar days after the day
of its first official publication); dated 19.06.2024 № 97-VIII (enters into force sixty calendar
days after the date of its first official publication).