About measures to introduce a cooling-off period when issuing unsecured consumer online loans

Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market reminds that in order to enhance protection of rights of consumers of financial services, a cooling-off period is introduced from 30 September 2025 when issuing unsecured consumer online loans.

The main purpose of the cooling-off period is to give the borrower time to make an informed decision and thereby reduce the likelihood of hasty entry into a loan agreement or involvement in fraudulent schemes.

This provision is contained in the Law of the Republic of Kazakhstan "Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan on Development of the Financial Market, Protection of Rights of Consumers of Financial Services, Communications and Elimination of Excessive Legislative Regulation", signed by the Head of State on 30 June 2025.

In implementation of the Law, the Management Board of the Agency  adopted the following cooling-off procedure for unsecured consumer loans issued online:

- no less than 8 hours after entry into a bank loan agreement for an amount from 150 MCIs (589,800 KZT) to 255 MCIs (1,002,660 KZT);

- no less than 24 hours for a bank loan in excess of  255 MCIs (1,002,660 KZT), a microloan in excess of  75 MCIs (294,900 KZT);

- transfer of money to the borrower is allowed only after his consent to issue the loan is received after the established cooling-off period lapses.

Banks and MFOs are required to comply with the cooling-off period in case that several loans are issued to the borrower within 1 day, the total amount of which exceeds the specified limits.

Along with that, the cooling-off period does not apply to issue of commodity loans, internal refinancing and loans to the extent of the payment card limit (up to 150 MCIs).

If the borrower changes his mind about taking out a loan during the cooling-off period, the loan agreement is cancelled and the loan funds are not transferred to him.

The cooling-off period applies only to online loans and is designed to protect citizens from fraud. In cases where the borrower urgently needs credit funds, he can always contact a bank branch or an MFO and apply for a loan without applying the cooling-off period.