Kazakhstanis Increasingly Buying Housing and Cars on Credit

The National Bank reported on the lending market in Kazakhstan. Second-tier banks, during a survey, provided the regulator with data for analysis, Orda.kz reports.

As Olzhas Kubenbayev, Director of the Financial Stability and Research Department of the National Bank, notes, individual demand for mortgages and car loans increased in the third quarter of the year.

At the same time, Kazakhstanis began to take out unsecured loans and consumer loans with collateral less often.

Banks explain the increase in demand for mortgages by additional collection of applications within the framework of state programs and interaction with developers. The increase in demand for mortgage products of one of the banks was influenced by some tightening of the collateral requirements by competing banks. As a result, the total number of loan applications increased by 31% quarter-on-quarter, to 274 thousand,
 noted Olzhas Kubenbayev.

Kazakhstanis have also started applying for car loans more often – +10% compared to the previous quarter, or 1.1 million. 

This is partly due to car dealerships actively promoting their services through partner banks.

In the fourth quarter of 2024, banks expect an increase in demand for car loans and unsecured consumer loans, while no increase in demand is forecast for mortgages and secured consumer loans,
 Olzhas Kubenbayev points out.

In the third quarter of 2024, Kazakhstani banks began to approve loans to businesses more often, mainly medium and large ones.

At the same time, the demand for business loans remained at the same level. Large and small enterprises began to apply for loans three percent more often than in the previous quarter.

There were 845 thousand applications for loans from small businesses, although only one in three (35%) were ultimately approved by banks. Medium-sized businesses receive loan approval in 41% of cases, and large businesses in 51%.

Banks expect that business loan growth in the country will only increase in the last quarter of 2024.

At the end of August, we wrote that interest rates on individual loans for up to one month reached a record high.

Original Author: Nikita Drobny