This law was adopted by the Jogorku Kenesh on September 25, 2025.
Key provisions:
Disclosure of information: before entering into a contract, the lender must provide a standard information sheet (loan amount, term, payment schedule, total cost, and annual effective interest rate).
Rate and markup: the nominal rate cannot exceed 0.08% per day; for installments, a markup equivalent to 0.08% per day is allowed.
Total cost: includes interest, markups, fees, insurance (if related to the loan), as well as state duties and taxes; "hidden" payments are not allowed.
Early repayment: possible at any time without penalties and fees, with recalculation of interest and markups.
DTI: the lender must assess the borrower's debt burden level; if DTI exceeds 60%, written notice and borrower consent are required; the NBKR has the right to impose additional restrictions.
Cap on charges: the total amount of interest, markups, fees, and penalties cannot exceed 60% of the issued loan amount.
Penalty: the accrual of penalties ceases 15 days after notification of the commencement of collection; the maximum penalty for the entire term is 10% of the loan amount.
Assignment of claims: possible only with prior written consent of the borrower; the new lender must maintain confidentiality and report data to credit bureaus.
Refinancing: possible for one loan no more than twice.
Mortgage loans: the law does not apply to loans secured by real estate, except for explicitly stated cases.
Deadlines for the regulator: the NBKR must align its regulations with the new law within 6 months.
Law of the Kyrgyz Republic, Bishkek, dated October 28, 2025, No. 237
On Consumer Credit
Article 1. Objectives and Scope of the Law
1. This law regulates relations related to the issuance and repayment of consumer loans, as well as establishes the rights and obligations of the participants in these relations.
2. The law aims to protect the rights of borrowers, ensure transparency of lending conditions, prevent excessive indebtedness, combat unfair practices, and promote responsible lending.
3. The law does not apply to loans for the purchase or construction of residential real estate secured by real estate, except for cases specified in the law.
4. The law applies to banks and non-bank financial organizations under the supervision of the National Bank of the Kyrgyz Republic, including those that operate on Islamic principles.
5. The requirements of the law also pertain to relations related to the issuance of consumer loans for the purchase of goods, works, or services. Provisions related to Islamic financing and installments apply to the extent that they do not contradict this law.
The banking legislation of the Kyrgyz Republic may introduce additional requirements for the regulation of consumer loans.
Article 2. Key Terms
1. The following key terms are used in this law:
1) annual effective interest rate - the rate that takes into account all payments of the borrower related to obtaining the loan;
2) borrower - an individual who has received or applied for a loan;
3) lender - a legal entity authorized to provide loans in accordance with the law;
4) markup - a rate of return in Islamic finance expressed as a percentage, as well as an increase in the borrower's obligation amount compared to the price of the goods, works, or services upon full payment;
5) debt burden indicator - the ratio of the borrower's average monthly payments on all debts to their average monthly income, expressed as a percentage;
6) total cost of the loan - the sum of all the borrower's expenses under the contract, including interest, fees, and other mandatory payments;
7) consumer loan - a loan provided to individuals on a repayable and paid basis for personal needs not related to entrepreneurship;
8) installment - terms of the contract allowing the borrower to fulfill obligations in parts or at a later date;
9) refinancing - the conclusion of a new contract to repay an existing loan;
10) assignment of claims - the transfer by the lender of their rights to another person in the manner prescribed by law.
2. Other terms and concepts used in the law have meanings established in the relevant branches of legislation of the Kyrgyz Republic.
Article 3. Parties and Subject of the Contract
1. The parties to the consumer loan contract are the borrower and the lender. Other persons ensuring the fulfillment of the borrower's obligations may also participate.
2. The subject of the contract is the funds provided to the borrower, as well as goods, works, or services paid for through the lender.
Mortgage loans and installments on real estate are not included in the subject of loans.
Article 4. Conditions for Providing a Loan
1. A consumer loan is provided based on a contract, including cases of interest-free lending.
2. The loan is issued to individuals upon confirmation of their creditworthiness, which is carried out by the lender in accordance with internal procedures.
3. Information about the loan conditions must be open and accessible to borrowers and cannot be considered commercial secrets.
4. Before entering into a contract, the lender must provide complete information about the consumer loan.
5. The lender must ensure:
1) the effective interest rate does not exceed the declared rate;
2) full disclosure of information to the borrower before entering into the contract;
3) explanation to the borrower of the consequences of non-fulfillment of obligations;
4) compliance with other requirements provided by law.
6. The lender is obliged to provide a standardized information sheet to the borrower for review.
The information sheet must contain key information about the loan, such as:
1) type and amount of the loan;
2) term, interest rate, and conditions for accrual;
3) total cost of the loan and annual effective interest rate;
4) amount and frequency of payments;
5) the borrower's right to withdraw from the contract before receiving funds;
6) consequences of non-fulfillment of obligations;
7) other information according to the law.
7. The conditions for providing the loan must be disclosed in customer service locations and on the lender's official website.
8. The installment is provided based on the price of the goods at the time of entering into the contract; changes in price do not entail changes in the obligations of the parties.
Article 5. Documents for Obtaining a Loan
1. The borrower must provide the lender with documents verifying their identity and necessary for assessing creditworthiness.
2. The minimum list includes:
1) identity document;
2) TIN (if available);
3) income information;
4) additional documents as required by law.
The lender must verify the authenticity of the submitted documents.
3. The National Bank may establish additional requirements for the borrower's documents.
Article 6. Terms of the Contract
1. The contract must contain:
1) details of the borrower and lender;
2) information about the loan;
3) total amount and term of the contract;
4) conditions for securing obligations (if any);
5) interest rate and total cost of the loan;
6) procedure and terms for loan repayment;
7) rights and obligations of the parties;
8) right to withdraw from the loan free of charge;
9) right to early repayment without penalties;
10) conditions for transferring information to credit bureaus;
11) conditions for ceasing the accrual of penalties;
12) liability of the parties;
13) procedure for amending and terminating the contract;
14) conditions of force majeure;
15) other conditions according to the law.
2. If the borrower's payment is insufficient for full performance of obligations, the debt is repaid in the order established by law.
3. The amount, procedure for accrual, and application of liability measures are determined by law.
4. The total amount of charges cannot exceed 60% of the loan amount.
5. Lending must be carried out in accordance with the requirements for information disclosure and responsible lending.
Article 7. Debt Burden Indicator
1. The lender is obliged to calculate the borrower's debt burden indicator:
1) when making a decision on issuing a loan;
2) when changing the terms of the contract;
3) in other cases established by regulatory acts.
2. The indicator is calculated as the ratio of average monthly payments to average monthly income.
3. The lender must establish the calculation procedure in its internal documents.
4. If the debt burden indicator exceeds 60%, the borrower must be notified of the risks.
The National Bank may establish additional requirements for managing credit risk.
5. The borrower confirms their acknowledgment of the notifications with their signature.
6. The indicator is not calculated when the terms are changed at the borrower's initiative.
7. The lender must comply with economic standards and restrictions.
Article 8. Total Cost of the Loan
1. The total cost includes all expenses of the borrower related to obtaining the loan:
1) interest at the nominal rate;
2) markup under Islamic contracts;
3) markup related to the price difference of the goods;
4) insurance costs;
5) notary services and fees;
6) tax payments.
Additional payments are not allowed, except for paid services by agreement.
2. The nominal rate cannot exceed 0.08% per day, and interest is accrued on the decreasing balance. In the case of installments, the cost must not exceed the price upon full payment.
The National Bank may establish other rates for the purposes of financial stability.
3. The total cost and effective rate must be disclosed before entering into the contract.
4. The use of conditions that distort the total cost of the loan is not allowed.
Article 9. Amendment and Termination of the Contract
1. Amendments to the contract are allowed by mutual agreement of the parties.
2. The borrower may terminate the contract in accordance with the law.
3. The lender may terminate the contract if the borrower has not used the loan within a month.
4. The borrower may fulfill obligations early without penalties, with recalculation of obligations.
5. In the case of installments, the borrower may terminate the contract and demand a refund of the amount.
6. Refinancing is possible no more than twice.
Article 10. Rights and Obligations of the Borrower
1. The borrower has the right to:
1) familiarize themselves with the loan conditions;
2) receive complete information about the loan;
3) demand fulfillment of the contract terms;
4) demand compensation for losses;
5) fulfill obligations early without penalties;
6) suspend the fulfillment of obligations in case of poor quality of goods;
7) demand a refund of paid amounts in case of impossibility of replacing the goods.
2. The borrower is obliged to:
1) provide accurate information;
2) use the loan in accordance with the terms;
3) repay the loan within the timeframes established by the contract;
4) notify the lender of changes.
3. The borrower has other rights in accordance with the law.
Article 11. Rights and Obligations of the Lender
1. The lender has the right to:
1) provide the loan within the established timeframes;
2) request necessary documents;
3) demand early repayment of the loan;
4) offer insurance.
2. The lender is obliged to:
1) provide complete information about the risks;
2) place the conditions for providing the loan in accessible locations;
3) compensate the borrower for losses;
4) suspend the fulfillment of obligations in case of poor quality of goods.
3. The lender has other rights and obligations in accordance with the law.
Article 12. Securing the Fulfillment of Obligations
1. Fulfillment of obligations may be secured by guarantees, surety, or collateral.
2. The creditworthiness of persons providing security is verified in the manner prescribed by law.
Security is not a mandatory condition for obtaining a loan.
Article 13. Assignment of Claims
1. The lender may assign claims with the borrower's consent.
2. The assignment is carried out in the manner prescribed by law.
3. Upon assignment, the lender may transfer necessary information to the new lender.
4. The new lender is obliged to comply with the requirements for personal data protection.
5. The new lender is also obliged to transfer information about the borrower to the credit bureau.
Article 14. Dispute Resolution
1. Disputes arising from consumer loan contracts must be resolved in court or through extrajudicial forms.
2. The parties may resolve disputes pre-trial, including appeals to credit organizations.
3. Extrajudicial resolution may be carried out through mediation.
4. This does not limit the right of the parties to appeal to the court.
Article 15. Liability for Violations
1. Violations of the conditions for providing a loan entail liability in accordance with the law.
2. If the interest rate exceeds the established values, the lender is liable.
3. The application of liability measures does not exempt from fulfilling obligations.
Article 16. Entry into Force of the Law
1. The law enters into force 10 days after its official publication.
Published in the newspaper "Erkin Too" on October 31, 2025, No. 83
2. The National Bank must align its acts with the new law within 6 months.
3. The law applies to contracts concluded after its entry into force.
4. Amendments to contracts concluded before the law's entry into force are made according to established rules.
President of the Kyrgyz Republic
S. Japarov
Adopted by the Jogorku Kenesh of the Kyrgyz Republic
September 25, 2025
