NBK warns installment plans hide debt load and distort consumer credit market

September 28, 2026 at 08:00 AM2 min

This digest was compiled by AI from multiple sources — links to the originals are below.

The National Bank of Kazakhstan has published a discussion paper on installment plans and BNPL services, flagging risks to debt burden and transparency in consumer finance. The regulator proposes dividing installment transactions into five categories and notes that non-bank financing often falls outside credit history and consumer protection rules. Overdue debt on interest-free bank loans rose 33% year-on-year to 206.8 billion tenge in August 2026, even as the portfolio grew only 4.4%.

Key Facts

The National Bank of Kazakhstan published a discussion paper on installment plans and BNPL services in September 2026.
The regulator divides installment transactions into five categories: bank, BNPL, seller, developer, and lease with subsequent purchase.
Interest-free bank loans reached 2.57 trillion tenge as of September 1, 2026, up 4.4% year-on-year.
Overdue debt on interest-free bank loans rose 33% year-on-year to 206.8 billion tenge in August 2026.
Bank installment debt grew almost threefold from 0.86 trillion tenge in April 2022 to 2.46 trillion tenge in August 2025.

Regulatory Gaps

The National Bank identifies the absence of a unified legal definition of installment plans in Kazakhstan as one of the main market problems. Transactions involving a bank or microfinance organization are credit agreements subject to consumer lending requirements. Financing provided by non-financial organizations may be structured as civil law contracts, leases with subsequent purchase, or other arrangements. Such obligations may not appear in credit history or be subject to the same consumer protection requirements.

Market Growth and Overdue Debt

The National Bank has separately recorded interest-free bank loans, excluding credit cards, since 2025. As of September 1, 2026, the outstanding balance of these loans was 2.57 trillion tenge, up 4.4% year-on-year. The share of such loans in consumer lending fell from 20% to 19.3%. Issuance of interest-free loans in August 2026 rose 2.2% year-on-year to 304.6 billion tenge. The weighted average rate on these loans increased from 35.7% to 37%. Overdue debt grew significantly faster than the portfolio, rising a third year-on-year to 206.8 billion tenge in August. The share of overdue debt rose from 21.6% to 23%.

Hidden Debt Burden

The National Bank estimates that bank installment debt grew almost threefold from 0.86 trillion tenge in April 2022 to 2.46 trillion tenge in August 2025. Obligations under some installment plans and BNPL services may not be reflected in credit history. Financial organizations therefore do not see the full picture of a borrower's debt. The National Bank links this to the risk of hidden over-indebtedness among the population.