New preferential car loan program launched in Kazakhstan

The government announced the launch of a new preferential car loan program during a press conference in the Baiterek Business Center.

The program was developed by the Ministry of Industry and Infrastructure Development in cooperation with the Ministry of Ecology, Geology and Natural Resources. Now every Kazakhstan citizen can get a car loan with the best possible rate.

The program is implemented by the Industrial Development Fund (a subsidiary of the Development Bank of Kazakhstan). Zhasyl Damu JSC has fully funded the program with 100 billion tenge.

Loan terms are as follows:

– remuneration rate is 4%;

– the maximum loan amount is 10 million tenge;

– the maximum loan term is 7 years;

– no down payment is required;

– a car must be produced in Kazakhstan;

– the maximum cost of a car is 15 million tenge.

Loans are issued by Eurasian Bank, Bank CenterCredit, Halyk Bank, and Forte Bank. This list is not final, as applications from second-tier banks are still being considered.

To make loan issuing transparent, second-tier banks must keep track of deadlines for providing financing to the final borrower.

Also, one borrower can get only one preferential car loan in two years.

The program was launched by the Decree of the Government of the Republic of Kazakhstan dated April 15, 2022. The decree entered into force ten calendar days after the signing.

The program will be implemented for 30 years. The money obtained from one borrower will be used to issue a loan to another borrower.

The new program’s terms are different from the ones of the DBK’s current program. In the new program, the waiting list is formed from scratch, while people who are on the old program’s waiting list can also apply for the new one.

The press conference was attended by Olzhas Saparbekov (Deputy Chairman of the Committee for Industrial Development of the Ministry of Industry and Infrastructure Development of the Republic of Kazakhstan), Rinat Gapparov (Deputy Chairman of the Board of the Industrial Development Fund), Galymzhan Adi (Managing Director of the Industrial Development Fund), Anar Makasheva (Vice President of the Association of Kazakhstan’s Car Business), and top managers of second-tier banks.

How to get a preferential car loan:

1. A borrower contacts a car dealership and chooses a suitable car;

2. The dealership issues an invoice with the VIN code valid for 5 banking days;

3. The borrower applies to a bank with the invoice issued by the dealership;

4. Once the application is accepted, the bank puts the borrower on its waiting list;

5. The bank then evaluates the borrower’s solvency and credit history. If everything is in order, the bank approves a loan and issues a letter of guarantee, valid for 5 banking days.

6. After receiving the letter of guarantee, the borrower contacts the car dealership to register the car.

7. If a borrower has not concluded a loan agreement within 10 banking days from the day he/she received a letter of guarantee, the borrower is excluded from the waiting list.

Once an application is submitted, a borrower cannot change the brand and model of the selected car or re-register a place on the waiting list for another person. If a borrower is refused a loan, he/she is excluded from the waiting list and another borrower will take his/her place. One borrower can get one preferential car loan every two years.

Second-tier banks (partner banks) must check borrowers’ solvency and approve car loans. Once a bank approves an application, a borrower should monitor the status of his application on the bank’s website.