MFIs will be able to issue loans of up to 250,000 KGS to regular customers based on credit scoring

The National Bank of Kyrgyzstan has raised the limit on loans that microfinance organizations can issue based on credit scores. For new clients, the limit will be up to 200,000 KGS; for regular clients with a good credit history, it will be up to 250,000 KGS.

Previously, loan decisions based on credit scoring could be made for loans of up to 100,000 KGS. Now the limit has been increased.

Scoring is an assessment of a borrower based on specific indicators, which helps a financial institution decide whether to grant them a loan.

At the same time, MFIs will be required to monitor how clients repay their loans and, if necessary, revise their credit ratings.

The resolution also establishes requirements for verifying borrowers’ income. For loans exceeding 100,000 KGS, MFIs will be required to determine which documents confirm the income and solvency of the client and the guarantor.

For loans up to 100,000 KGS, borrowers will not be required to provide a report detailing how the money was spent. This rule also applies to certain loans where the funds are transferred directly to the seller or supplier.

In addition, borrowers will be able to prepay loans and leases through remote services without fees or penalties.

The resolution also changes the rules for assessing delinquent loans. In certain cases, when assessing debt, delinquencies on loans taken out by the borrower’s spouse, parents, or children will also be taken into account if they are repaid from a common source of income.