Loan repayment penalties lifted: fresh regulations take effect

In a significant move, the Agency for Regulation and Development of the Financial Market in Kazakhstan has announced changes to the early repayment procedure for loans, effective from August 31. These changes bring good news for borrowers in the Central Asian country.

As of the new rules, individuals can repay their loans early without incurring penalties. This is a departure from the previous regulations, where only legal entities were subject to penalties for early repayment. The new rule applies to all loan contracts, including those signed previously.

Banks in Kazakhstan have the right to determine the early repayment procedure for loans, within the framework of the law. This means that banks can establish submission deadlines for early repayment requests and determine calculation dates for early repayment. However, banks can also set minimum amounts for early repayment and may choose to allow for either full or partial early repayment.

Partial repayment can be beneficial for borrowers as it allows for a shortened loan term while keeping the monthly payment the same, or a reduced monthly payment while keeping the original loan term. Early repayment of loans in Kazakhstan allows borrowers to reduce interest payments and accelerate debt repayment.

It's important to note that banks in Kazakhstan that set regulations for early loan repayment typically include major national and commercial banks, regulated by the National Bank of Kazakhstan. For precise details, customers usually refer to their individual bank contracts and the National Bank of Kazakhstan’s legal framework.

In other positive news, the "Nauryz" mortgage program, which was temporarily suspended, has been resumed in Kazakhstan. This program offers attractive terms for homebuyers and is expected to contribute to growth in the mortgage loan portfolio.

Experts predict growth in auto and mortgage loan portfolios in Kazakhstan, thanks to these changes and the resumption of programs like the "Nauryz" mortgage program. These developments are likely to boost the economy and provide more opportunities for individuals and businesses in Kazakhstan.

However, it's worth mentioning that penalties and fines paid before the changes take effect are not subject to recalculation or refund. This means that if you have already paid penalties for early repayment before August 31, you will not be eligible for a refund or recalculation of those penalties.

In conclusion, the changes in the early repayment procedure for loans in Kazakhstan are a step forward for borrowers, offering them more flexibility and reducing the financial burden of loans. For more detailed information, it's advisable to consult your bank or the National Bank of Kazakhstan's legal framework.