Starting October 1, Kazakhstanis will be asked questions before being issued online loans
Tengrinews.kz — Starting October 1, Kazakhstanis applying for certain online loans will be required to answer questions regarding who prompted them to borrow the money and whether they are acting under the influence of fraudsters. These new requirements will apply to both banks and microfinance organizations.
What changes on October 1
The new regulations are outlined in resolutions from the Agency for Regulation and Development of the Financial Market, which were signed back on May 15. However, certain provisions will only come into effect now. October 1:
These rules apply to unsecured consumer bank loans and microloans processed via the internet.
Before a contract is finalized, the bank or microfinance organization must conduct a client survey. The purpose of this questionnaire is to identify potential fraud or determine if the individual is acting under the influence of third parties.
What will be asked
The questionnaire consists of seven questions.
Specifically, the borrower must indicate who suggested they take out the loan: whether it was an independent decision, advice from an acquaintance, or a call allegedly from "security services," "police," or other officials.
Banks and microfinance organizations will also seek to determine:
whether the person is applying for the loan independently or at the request of third parties;
the purpose of the funds—whether for personal needs, "account verification," "returning an erroneous transfer," or transferring to a so-called "safe account";
whether they understand the loan terms—the amount, term, interest rate, and repayment schedule;
whether anyone is pressuring them or demanding they take out a loan urgently;
whether anyone advised them to hide the loan application from bank employees, microfinance staff, or relatives;
whether they previously received calls offering to "protect money" or "verify account transactions."
What happens if the bank suspects fraud
If a client’s answers suggest potential fraud or indicate they are acting under third-party influence, the financial institution must conduct an additional investigation into the circumstances of the loan application.
This includes providing the client with further information regarding the risks associated with potential fraudulent schemes.
Earlier, the National Bank amended its resolution regulating loan issuance. These new rules took effect on August 10. Consequently, obtaining a loan has become more difficult, as new details in the financial history of Kazakhstanis are now taken into account.
