Kyrgyzstanis are short of money: demand for microloans rose sharply in the first quarter of 2025

In the first quarter of 2025, microcredit institutions in Kyrgyzstan issued loans worth about KGS 19 billion and served more than 340,000 borrowers, according to the National Bank. This is 30.5% more than in the same period last year. The total amount of funds disbursed also increased by 39%.

Most borrowers are registered in Bishkek (38% of the total), as well as in the Osh (14.5%), Jalal-Abad (about 12%), and Chui (more than 10%) regions. These same regions also received the largest amounts of microloans: 27% in Bishkek, over 16% in the Osh region, 14% in the Jalal-Abad region, and over 13% in the Chui region.

Of all microloans, 61.5% were issued for consumer needs, 12.2% more than a year ago. Agriculture accounted for about 17%, trade and catering for just over 10%.

According to economist Nurgul Akimova, the growing popularity of microloans reflects not an economic upturn but the financial vulnerability of citizens.

"The growing popularity of microloans, especially in the regions, is explained not only by their simplicity and minimal requirements for borrowers, but also by the fact that a significant part of the population has a shortage of cash income. In a situation where savings are insufficient and access to traditional bank loans is limited, microfinance organizations often become the only source of borrowing, despite high interest rates," the expert told the editorial office of Akchabar.

This trend also points to socio-economic imbalances, where loans are used not for business development but as a means of survival. This, in turn, leads to an increase in debt and reduces household stability.

Akimova also emphasizes that microloans in the regions are widening the gap between rich and poor.

“Access to more advantageous financial products and opportunities for savings and investment is often limited to the wealthy, while less secure citizens are forced to resort to expensive microloans. This exacerbates inequality and limits their prospects for socio-economic growth,” the expert notes.

To change the situation, according to Nurgul Akimova, it is necessary to comprehensively develop the financial infrastructure, improve financial literacy among the population, and expand access to long-term and affordable credit products.

“This will reduce dependence on microloans and contribute to the sustainable development of the regions,” she concluded.