About rules for early repayment of loans and upcoming legislative changes
Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market reminds borrowers about the procedure for early repayment of loans, and also informs about legislative changes in this area that take effect on 31 August 2025.
Early repayment allows the borrower to reduce overpayments on interest and speed up discharge of his debt obligations. It can be full – with repayment of the entire debt, or partial – with payment of an amount in excess of the established schedule. With partial early repayment of the loan, it is possible to reduce the loan maturity while maintaining the amount of the monthly payment or reduce the amount of the monthly payment while preserving the loan maturity.
Financial institutions have the right to determine the procedure for early repayment within the legislative framework: set minimum amounts, application deadlines and settlement dates. Borrowers are advised to agree with the bank in advance on a chosen recalculation method, as well as clarify the procedure for writing off the cash, specifics of returning the insurance premiums and releasing the mortgage encumbrances.
Before the changes take effect, banks have the right to apply penalties for early repayment: during the first six months – for loans with a maturity of up to one year, and during the first year – for loans with a maturity of over one year.
In order to enhance protection of rights of consumers of financial services, a rule will take effect on 31 August 2025, whereby penalties for early repayment will apply only to legal entities. Individuals will be able to repay loans ahead of schedule at any time with no penalties. This rule applies to all contracts, including previously signed ones. However, please note that fines and penalties paid before the changes take effect are not subject to recalculation or refund.
Early repayments help reduce debt burden, improve credit history and improve financial stability of borrowers. Before deciding on early repayment, it is recommended to assess the availability of a financial reserve and possible alternatives for using the available funds.
External Communications Directorate