Kazakhstan considering relaunching preferential car lending programs

Kazakhstan Materials 31 January 2022 10:25 (UTC +04:00)
Kazakhstan considering relaunching preferential car lending programs

BAKU, Azerbaijan, Jan. 31


The Ministry of Industry and Infrastructural Development of Kazakhstan is considering the issue of allocating additional budgetary funds for a program of preferential car lending, Trend reports via the ministry.

According to the ministry, the program is aimed at ensuring the availability of locally produced cars for the population.

Besides, by the president’s instruction, a new program of preferential car lending for the population will be developed. At the moment, several options for relaunching the program are being considered.

A distinguishing feature of one of the options is that an additional subprogram to support large families, law enforcement officers, doctors and teachers are proposed to be included in it.

A variant with the inclusion of the "First Family Car" subprogram is also being considered.

The preferential car lending program was launched in 2015. It’s designed for 20 years and is based on "revolving" lending. The total funding limit is 82 billion tenge ($190 million).

Since the implementation of the program, 30,525 loans, including revolving funds, with a total amount of 159 billion tenge ($370 million), have been issued. About 80,000 people have already purchased cars for domestic production.

The lending program has the following conditions:

- the cost of 1 car is no more than 15 million tenge ($35,000);

- the lending deadline is seven years;

- the nominal interest rate for the final borrower mustn’t exceed four percent per annum;

- when the final borrower repays the loan to the second-tier banks, repeated lending to buyers of domestic-made cars is allowed at the expense of the returned funds.

Currently, the following cars of domestic production are available for purchase under the program: Hyundai, KIA, JAC, Chevrolet, and LADA.