Restricting Loans for Young Kazakhs Under 21 Proposed in Senate

In Kazakhstan, senators are discussing a sharp rise in debt among young people. Deputy Gennady Shipovsky highlighted that easy access to microloans and aggressive advertising by microfinance organizations make youth especially vulnerable.

Shipovsky noted that many young people take microloans impulsively without understanding the consequences. He emphasized that the combination of easy access to credit and low financial literacy leads to young people quickly falling into debt. Open reports confirm high levels of indebtedness among Kazakhstan’s youth, with impulsive online loans and microcredits often resulting in missed payments.

Shipovsky proposed a set of measures: raising the minimum age for obtaining microloans to 21, mandatory assessment of borrowers’ financial capacity, and expanding financial literacy education. He also suggested introducing financial literacy courses in schools and colleges and creating online platforms and support centers for young people facing debt or legal issues.

Lawmakers view the problem as systemic and a social challenge. Raising the age threshold and tightening requirements for microfinance companies could reduce impulsive borrowing and protect youth from debt traps.