The National Bank has expanded opportunities for unsecured lending to SMEs

The National Bank of Kyrgyzstan has relaxed the requirements for unsecured lending, thereby expanding the scope for banks and microfinance companies to provide finance to entrepreneurs. The changes are set out in the regulator’s annual report for 2025.

With a view to stimulating lending to business activities, particularly to small and medium-sized enterprises, the National Bank has amended its regulatory legislation.

In particular, the regulator has expanded the list of exemptions to which restrictions on unsecured loans do not apply. Furthermore, the threshold amounts for certain types of lending have been increased to 300,000 and 500,000 KGS.

The maximum permissible volume of unsecured loans that financial institutions may issue has also been raised. For commercial banks, the limit has been increased from 20 per cent to 25 per cent of their total net capital, and for microfinance companies, to 25 per cent of their equity capital.

The National Bank notes that the measures taken are aimed at expanding access to finance for entrepreneurs, particularly those in small and medium-sized enterprises, without the need to provide collateral.