According to him, in accordance with the legislation of the Kyrgyz Republic "On the Activities of Pawnshops," pawnshops are organizations that offer short-term loans to citizens secured by collateral of movable property.
“Thus, pawnshops can only provide short-term lending, and only against collateral of movable property,” he added.
In contrast, as Ashimzhan uulu noted, banks are under the control of the National Bank and operate in accordance with lending legislation. They have the ability to provide loans secured by both movable and immovable property, following established internal procedures and legal requirements.
The key difference, according to the specialist, is as follows:
• a pawnshop offers only short-term loans secured by movable property, while accepting real estate is prohibited.
• a bank provides loans secured by both movable and immovable property in accordance with legislative norms and under the control of the National Bank.
