Average Debtor In Kazakhstan Is Getting Younger, Economist Says

The average debtor in Kazakhstan is getting younger, according to economist Ruslan Sultanov, who analyzed the National Bank’s study on short-term non-bank lending, or PDL, a category often referred to as payday loans, Orda.kz reports.

Writing on his Telegram channel Tengenomika, Sultanov noted that the average age of a borrower in the PDL category fell from 36 in 2022 to 33 in 2024. At the same time, the average loan amount rose from 50.6 thousand tenge to 64.2 thousand.

In his view, this points to a gradual change in the consumer habits and financial behaviour of Kazakhstanis.

At first glance, this may look like an ordinary ‘rejuvenation’ of the client base. But in reality, such a shift is much more serious. The younger the borrower, the higher the probability that a loan begins to become part of a person’s financial behaviour even before they have built a stable safety cushion, savings and the habit of living within their income. Then debt becomes not a temporary tool in an emergency, but part of a daily consumption model. Sultanov said. 

According to the economist, young people are becoming used to seeing debt dependence as normal. He also pointed out that in 2024, half of borrowers in the PDL category had at least one more active microloan at the same time.

Almost a third of borrowers remained in that status for at least six months during the year, which, Sultanov believes, points to the systemic nature of this type of borrowing.

In this situation, he considers the National Bank’s tight monetary policy justified. The base rate has remained at 18 % per annum since last autumn.

Sultanov’s view differs from that of some other economists. Analysts at Halyk Finance, for example, argue that loans help support demand in the economy and improve living standards.

Original author: Alexey Afonsky

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