Deferment provision is carried out in accordance with Articles 36 of the "Law on Banks and Banking Activities in the Republic of Kazakhstan" and 9-2 of the "Law on Microfinance Activities."
As of September 1, 2023, the Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market reported that 5,000 conscripts and military personnel have received payment deferments on 8,800 loans totaling 1.4 billion KZT during their compulsory military service, as reported by Sarbaz.kz citing FinGramota.kz.
So, how does the process of granting payment deferments for bank loans and/or microloans work for conscripts and military personnel undergoing conscription?
The Ministry of Defence provides the Agency with a list of conscripts and military personnel undergoing compulsory military service who have loans, along with their personal information and the name of the bank or microfinance institution.
The Agency forwards the lists received from the Ministry of Defence to banks, microfinance institutions, or collection agencies, specifying conscripts and military personnel undergoing compulsory military service and having bank loans and/or microloans.
Banks and microfinance institutions promptly grant deferments and suspend all debt collection activities as prescribed by the legislation of the Republic of Kazakhstan.
The granting of payment deferments by banks and microfinance institutions for bank loans and microloans is carried out in accordance with Articles 36 of the Law of the Republic of Kazakhstan "On Banks and Banking Activities in the Republic of Kazakhstan" and 9-2 of the Law of the Republic of Kazakhstan "On Microfinance Activities" when a conscript or military personnel, or their legal representative, submits an application along with supporting documents confirming their conscription or the fact of military personnel undergoing compulsory military service.
Can the borrower personally contact the creditor?
The borrower has the right to independently submit an application to the bank or microfinance institution through email, the online banking system, the internet platform, a mobile application, or other means of communication, or by visiting the creditor's office. The application must be accompanied by a certificate confirming conscription or military personnel undergoing compulsory military service.
Deferments for loans are granted to conscripts or military personnel upon their personal application to the creditor, in accordance with the Ministry of Defence's list. Representatives of the borrower can also apply to the creditor with a power of attorney.
Additionally, there is no need to submit an additional application to the Agency.
As previously reported by Sarbaz.kz, more than 5,000 citizens have received credit holidays on 8,800 loans totaling 1.4 billion tenge.
It is worth recalling that in December 2022, a Memorandum of Mutual Cooperation was signed between the Ministry of Defence of the Republic of Kazakhstan and the Agency, envisaging the provision of payment deferments for bank loans and microloans to borrowers called up for compulsory military service.