Car Loan Issuances In Kazakhstan Fall Almost 18%

Demand for car loans in Kazakhstan is declining after several years of rapid growth. In the first quarter of 2026, banks received 11% fewer applications for car purchases on credit, Orda.kz reports.

According to the Association of Financiers of Kazakhstan, banks received about 1.2 million applications for car loans in January–March. At the same time, the volume of new issuances decreased by 17.7% and amounted to 397.7 billion tenge. For comparison, the entire retail lending market decreased by only 4.4% over the same period.

The association believes that more and more potential buyers have already managed to buy a car on credit, leaving fewer new borrowers.

High rates and stricter bank requirements for customers are creating additional pressure. The weighted average rate on car loans increased from 14.8% to 24.3% over the year. The AFC links this to the high base rate, the rising cost of bank funding, and a reduction in the number of promotional programs from car dealerships.

Against the backdrop of declining demand, the share of car loans in the total volume of retail lending fell to 9.7%, compared with 11.3% a year earlier. Only 15.4% of applications were approved, significantly lower than the retail market average.

At the same time, cars themselves are not becoming cheaper. The share of loans worth more than 10 million tenge increased from 32.3% to 37.1% over the year. The average car loan amount reached 6.7 million tenge. The AFC attributes this both to rising car prices and to a shift in demand toward more expensive market segments.

Despite the cooling in new issuances, the total car loan portfolio continues to grow. At the beginning of April, it reached 4.1 trillion tenge, while the overdue debt rate was only 2.9%, significantly lower than the retail loan average.

The AFC expects the situation to remain largely unchanged. Demand will stay at the same level, and the market will continue to slow down.

Original author: Alexander Zhdanov

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