From March 3, 2023y. people who are in arrears and have got microloans can apply a statement for the failure procedure. Required condition is – promiser’s going through the troubled debt settlement procedure.

 Fingramota.kz will tell you more, what borrowers should do, in case of delaying loans and microloans.

From October 1, 2021y. the procedure for resolving problems with debt citizen’s acts, that having loan repayment troubles. Banks and microfinance organizations (MFO) have to execute it and consider the applications of debtors on restructuring their loans and microcredits.

In 2022, 708.7 thousand borrowers’ applications are considered by credit organizations, of which 74.5% applied people – 527.8 borrowers the restructuring was approved.

At the request of the Agency for regulation and development of the financial market (Further-Agency) the credit organizations are updated the internal regulations, taking into account an obligatory procedure for the settlement of overdue debts of loans and microcredits. Banks and MFO are placed an information about arrears of settlement debts mechanism on an official Internet resources, social networks and mobile applications, and also additional hotlines for consulting borrowers are opened according to the questions of loan restructuring.

Principle of actions of the borrower and the credit organization

According to the order, creditor (Bank of MFO) have to inform the borrower about the delay has occurred within 20 days from the date of its occurrence. Credit institutions inform citizens in the notification, what is necessary:

• to make loan payments,
• to repay the overdue debt, indicating an amount and consequences for the borrower in case of non-payment,
• to contact the lender to restructure the loan.

In its turn, borrowers who are in arrears must submit an application to the credit organization for restructuring loans and microcredits within 30 days from the date of its occurrence. It is necessary to indicate the reason for the delay and offer options for possible restructuring, to provide a supporting document, indicating a decrease in income and the inability to pay for their obligations in the application. The borrower’s application has to submit an acceptance, registration, accounting by the bank and MFO.

The creditor considers the application within 15 calendar days, whereupon, must provide an answer. In case of a positive response bank or MFO provides the borrower with proposals for changing the loan agreement. In case of a negative answer, they must justify the reasons for refusal.

Exactly the borrower provides an information about his financial and social standing, he must confirm the fact of a decrease or absence income, in connection with which he cannot fully fulfill his obligations. In case if the requested documents are not attached to the application, then the credit organization has the right to leave the borrower’s application without consideration.

What is a restructuring?

There are changes in the terms of an existing loan for those borrowers who find themselves in a difficult financial situation. Bank or MFO can offer the borrower:

• the downward change in the interest rate under the loan agreement,
• the change in the currency of the balance of the principal debt on the loan, which is issued in foreign tax, on national currency,
• deferring payment of principal and (or) interest,
• the change in debt repayment method of debt repayment order, including repayment of the principal debt on a priority basis,
• a loan term changes,
• the forgiveness of overdue principal and (or) remuneration, cancellation of the penalty (fines and penalties), commissions and other payments, related to servicing a bank loan,
• a presentation of a release in return for the fulfillment of an obligation under a loan agreement by transferring to a bank (organizations, carrying out certain types of banking operations) a mortgaged property,
• a sale of immovable property that is the subject of a mortgage with the transfer of liability under a loan agreement to the buyer.

Amendments to the terms of the agreement are carried out within 15 calendar days from the date of such a decision by the bank or MFO.

If the borrower does not meet the conditions offered by the lender?

If it was not possible to reach an agreement with the lender on the terms of the loan restructuring, the borrower has the right to apply to the Agency of the Republic of Kazakhstan for the regulation and development of the financial market. In this case, it is necessary to provide confirmation of the borrower’s application to the bank or MFO and to achieve the failure of an acceptable solution.

The debtors can apply to Banking Ombudsman in accordance with the Bank Law also to settle disputes, appearing from the mortgage loan agreement.

The Agency will conduct a documentary check against the bank creditor and provide an assessment of the actions of banks and MFO, based on applicant’s request. In this period a credit organization do not allowed to start the procedure of foreclosing the pledged property of debtors, which are belonging to socially vulnerable segments of the population.

You can learn more about the unified debt settlement procedure by contacting the agency through the “1459” call center’s number, or “Fingramota Online” mobile application.