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Kazakhstan approves conditions for preferential car loans

Kazakhstan Materials 16 May 2022 12:38 (UTC +04:00)
Kazakhstan approves conditions for preferential car loans
Nargiz Sadikhova
Nargiz Sadikhova
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BAKU, Azerbaijan, May 16. The total amount of funding will be 100 billion tenge ($233.6 million) under the program of concessional lending and 30 billion tenge ($70 million) to upgrade the bus fleet in Kazakh regions, Trend reports with reference to the Telegram channel of the Kazakh Ministry of Ecology, Geology and Natural Resources.

Program is being developed for the purchase of cars by citizens of Kazakhstan on preferential loans in order to stimulate the renewal of the personal fleet, also the renewal of the fleet of buses at the expense of Zhasyl Damu JSC.

According to the Kazakh Ministry of Industry and Infrastructure Development, car loans for the population will be subject to the following conditions:

- remuneration rate 4 percent;

- the amount of credit is not more than 10 million tenge ($23,364);

- term of financing is not more than 7 years;

- initial payment from 0 percent;

- the cost of the vehicle does not exceed 15 million tenge ($35,046).

Lending will be carried out by second-tier banks.

Condition is provided for obligatory availability of an automated system for second-tier banks to track the status of the term for providing financing to the final borrower for the purpose of transparency of financing.

Also, there is a restriction in the form of providing financing for one final borrower no more than once in two years.

Conditions for lessees for the purchase of buses will be as follows:

- interest rate 0.01 percent;

- leasing period up to 7 years;

- initial payment from 0 percent.

In addition, to support in form of preferential car loans, the state is working out measures to resolve the issues of the validity period of discount certificates.

To date, mechanisms are being researched so that citizens can use the already purchased discount certificates, which they could not use earlier due to the transfer of the functions of the ROP operator to Zhasyl Damu JSC.

The usage of these certificates has been temporarily suspended due to ongoing verification activities.

Other financing conditions are specified in Government Decree no. 604 of September 2, 2021.

Earlier it was reported that preferential car loans in Kazakhstan will begin on May 16.

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