From the data of the First Credit Bureau (FCB), it follows that by the end of July 2018, the total loan debt of individuals amounted to 5.73 trillion tenge, having increased by 1.8% compared with last month and by 9.2% from the beginning of the year. The average debt per borrower in the second quarter of 2018 amounted to 904 thousand tenge.
Debt structure as of 1.08.2018
According to data of the First Credit Bureau
From the above diagram, we see that consumer unsecured loans, executed directly in a store or a bank, are becoming most popular. The time of issuing such loans does not exceed 15 minutes. It requires a minimum set of documents. This can be an identity card or a passport. Also, this type of loan can be taken without leaving home: money will be transferred to your card in minutes. The ease and availability of such loans leads to rash actions and immediate desire of a person to purchase this or that thing.
Advertising. All advertising of microfinance organizations is based on very attractive figures: “Loan at 2% interest rate!”, “Take 16.000 - return 17.600!”. And no one thinks that 2 percent is per day, that daily 320 tenge in case of arrear will turn into almost 10 thousand tenge per month. Finally, two percent per day is 720% per annum!
Also, have you noticed that now the price tags in many stores do not show the real value of goods? To catch the eye, we see the amount we need to pay per month, if we make a purchase on credit. Only 20 thousand tenge for a new IPhone - is that much? But in two years the same 400 thousand tenge will turn out, which is usually when buying, but how tempting, and most importantly, it sounds affordable!
“Loans will be enough for everyone!”, “Enjoy now!”, “You can afford it!”, “Do you need cash immediately?”, “Credit is not scary” - billboards on the streets of our cities promote, inspiring consumers, that they can get a loan immediately. And they do not think: can I?
But in the end it turns out that a borrower is not able to make monthly payments, thereby driving himself into a debt trap. And debtors have to deal with representatives of collection agencies.
Nevertheless, loans - the phenomenon is absolutely normal and convenient. But requiring responsibility and discipline. Who of you read honestly and understood everything that is printed in a contract in small print, buying a smartphone in debt? Who of you consider how much the new gadget would cost in the end, before making a decision?
Kazakhstan has enacted enough laws prohibiting the use of physical force by collectors, property damage and psychological pressure. But it is impossible to write a law that forces one to think and weigh the pros and cons when making a decision. It is impossible to come up with a law that will protect a person from irresponsible attitude to himself. No government in the world can cope with this task.