Kazakhstan cracks down on ‘loan shopping’ with strict new borrowing rules
Kazakhstan introduces a new regulation to tackle 'loan shopping', a practice where individuals rapidly take out multiple news. MP Samat Nurtaza brought this issue to the Mazhilis, the lower house of Kazakhstan's parliament. The new rule, set to come into effect soon, will prevent any institution from issuing new news to a client until their first application has been processed. This measure aims to halt the growing trend of 'loan shopping', which has been contributing to an increased debt burden among Kazakh citizens. Credit bureaus will now be required to indicate whether a client's first loan application has been approved or rejected. This will help financial institutions make informed decisions and prevent further debt accumulation. The new regulation is expected to significantly reduce the prevalence of 'loan shopping' in Kazakhstan. By ensuring that individuals can only have one loan application processed at a time, the government aims to promote responsible borrowing and decrease the overall debt burden on Kazakh citizens.
