Advice for Kazakhstan residents: What to do if you can't make your loan payment on time?
When should you seek restructuring?
The bank may consider a restructuring request if the borrower has objective reasons for financial difficulties, such as:
- a decrease in income or job loss;
- serious illness or disability;
- maternity leave;
- military service call-up;
- force majeure circumstances (fire, theft of property, etc.).
The sooner you contact the bank, the higher your chances of avoiding penalties, a negative credit history, and legal action.
How to submit a request?
Contact the bank with a restructuring application within 30 days after the overdue payment. In your application, specify the reason for your financial difficulties and attach supporting documents (income statement, medical certificates, etc.). The bank will review the application within 15 calendar days and offer possible options.
What are the restructuring options?
Banks may offer several solutions:
- extending the loan term — reduces the monthly payment but increases the total repayment;
- lowering the interest rate — possible if the National Bank's base rate decreases;
- payment deferral — temporarily relieves from payments, but interest continues to accrue;
- waiving penalties and fines — the bank may partially write off the penalties;
- changing the repayment order — prioritizing the repayment of the principal debt.
What to do if the bank denies your request?
If the bank does not approve the restructuring, you can:
- contact the banking ombudsman;
- consult with a financial lawyer;
- consider refinancing — taking out a new loan to pay off the old one on more favorable terms.