Decreasing auto loan rates anticipated in Kazakhstan, sparking experts' predictions of increased vehicle demand
Scoop: Loan Sharking in Kazakhstan on the Rise
Get ready to hit the roads, Kazakhstan! The Financiers Association has declared an unexpected surge in auto loan demands, and it ain't slowing down anytime soon.
In the first quarter of the year, an eye-popping 213,000 auto loans, totalling an eye-watering 483 billion tenge, were handed out to eager drivers. That's a whopping 36% jump compared to the same period last year. And guess what? Half of all cars purchased in Kazakhstan are bought on credit!
If you're thinking about joining the club, take note. The average auto loan interest rate is a reasonable 14.8%, significantly lower than other loans. However, the approval rate for these applications has dipped to 15.7%, though it's still higher than the previous year's 18.5%. The association attributes this to a decrease in creditworthy borrowers.
So, what's the future looking like? Well, the association predicts that by the end of the second quarter, the demand for auto loans will only increase. But don't worry, they assure us that strict borrower selection and stringent scoring will keep things under control.
Interestingly, the average auto loan amount has risen by 2%, to 6.4 million tenge. Car prices have gone up by 4% compared to the previous quarter. With 75.2% of borrowers now eyeing cars priced between 3-10 million tenge, it seems we're seeing a shift towards more affordable models in an intensely competitive car market.
Want more car-related scoop? Check out these other hot topics:
- Gas-guzzlers of Kazakhstan: Find out how many gas cars have flooded our streets over the past year.
- Car Taxes 101: Get the lowdown on taxes, how much to pay, when, and what kinds.
- Kazakhstan's Back Alley Car Registrations: Discover how much money our country is losing due to illegal car registrations.
[1] Central Bank of Kazakhstan 2025 Inflation Projections[2] Halyk Bank 2024 Annual Report[3] Consumer Loan Trends in Emerging Markets[4] Kazakhstan Financial Sector Report H1 2025 (available soon)[5] Regional Financial Market Trends in 2025
In light of the increasing auto loan demands and the rising preference for cars priced between 3-10 million tenge, the automotive industry and the transportation sector in Kazakhstan might witness a significant boost in growth. The surge in the demand for auto loans, coupled with stringent borrower selection, could lead to a shift in the market dynamics, potentially influencing financing institutions such as finance and banking sector in the country.
