Steady Loan Requirements in Kazakhstan Q1 2025
Borrowers in Kazakhstan are obtaining loans
The banking sector in Kazakhstan witnessed significant shifts in the first quarter of 2025, with key trends emerging in auto loans, mortgage loans, and unsecured consumer loans.
Key Findings and Insights
- Auto Loans on the Rise: Despite economic tensions, demand for auto loans surged due to joint programs with car vendors that offer partial auto loan subsidies. This caused a 13% (q/q) increase in credit applications totaling 1.4 million and an 11% (q/q) rise in average application sizes to 7.9 million tenge.
- Slump in Mortgage and Unsecured Consumer Loan Demand: In contrast, mortgage and unsecured consumer loan requests experienced a decrease. The approval rates for mortgage products and auto loans dropped by 7 percentage points (q/q) and 2 percentage points (q/q) to 24% and 16%, respectively. The share of approved unsecured loans increased to 31%, while the share of approved secured loans remained consistent at 36%.
- Secured Consumer Loans' Modest Increase: A slight rise in demand for secured consumer loans resulted from lower interest rates, the abolition of commissions by certain banks, and active marketing efforts by a prominent bank. This led to a 25% (q/q) increase in applications to 50.9 thousand and a 9% (q/q) increase in the average loan size to 12.8 million tenge.
- Decrease in Unsecured Consumer Loan Demand: Despite marketing campaigns and installment credit issuance suspensions by some banks, demand for unsecured consumer loans remained stable for large banks. The number of applications dwindled by 10% compared to the previous quarter, totaling 18.1 million, but the average application size escalated by 13% (q/q) to 1,025 thousand tenge.
Background Factors
Kazakhstan's economy experienced a 6% growth year-on-year in Q1 2025, primarily driven by the transport and trade sectors[4]. This economic expansion affected the banking sector, resulting in noteworthy trends in auto loans, mortgage loans, and unsecured consumer loans.
Challenges and Opportunities
- Regulatory Obstacles: Banks in Kazakhstan must navigate regulatory obstacles, such as restrictions on managing non-performing loans, which could impact loan growth and profitability[1].
- Economic Dynamics: Despite challenges, Kazakhstan's economic growth bolsters loan demand. The performance of transport and trade sectors is expected to continue shaping consumer confidence and expenditure patterns, potentially boosting demand for auto and other consumer loans.
Final Thoughts
Although specific data on auto loans, mortgage loans, and unsecured consumer loans in Kazakhstan for Q1 2025 is not extensively detailed, the general trends indicate a complex picture. Economic growth stimulates loan demand, while regulatory challenges and inflationary pressures may constrain this growth. Banks and fintech firms are navigating these challenges by focusing on digital expansion and optimizing their loan portfolios.
[1] Kazakhstan Banks Face Tough Sailing in Second Half of 2025, Astana Times, 15 April 2025.
[2] Inflation in Kazakhstan Hits 5.6% in 2025, Central Asian Review, 7 May 2025.
[3] Kaspi.kz Reports Strong Net Loan Portfolio Growth, Business Times of Central Asia, 12 May 2025.
[4] Kazakhstan Economy Grows by 6% YoY in Q1 2025, Trend News Agency, 14 May 2025.
- The rise in demand for auto loans, partially driven by joint programs with car vendors, indicates a growing trend in the finance sector within the business landscape of Kazakhstan.
- Despite the decline in mortgage and unsecured consumer loan requests, the banking industry in Kazakhstan continues to face opportunities for growth, particularly as economic expansion persists and shapes consumer spending patterns.
