Experts announce terms and arrangements of preferential car loan program

Kazakh wait listers must re-apply to participate in the new preferential car loan program. The submission of the first applications started today, but so far only one of the four banks approved by the program operator is accepting them. Deputy Head of the Industrial Development Fund Rinat Gapparov commented on the situation at a special press conference.

“The people, who were previously in the wait list at the banks under the preferential car loans program, are going to remain there. There will be no queue transition. Each bank has its own limit, which will be determined by the authorized bodies; therefore, the banks will receive this money. Currently, the banks are undergoing a corporate procedure in our fund and sign agreements. We will complete the corporate procedure for the rest of the banks. I think that, out of the four banks that have been announced, the remaining three are going to receive these funds by the end of the week,” Gapparov said.

In the meantime, a crowd full of excitement gathered at car dealerships since the very morning. People are puzzled, the program was supposed to be fully launched on May 16.

 “I don’t know what will happen, at least I’m just going to sign up,” said a Kazakh resident.

“Why make more applications if there is no such funding, I mean, for a certain number of people. It's not clear, I don't think that all this is transparent,” opined a citizen.

“The fact is that I have doubts about this electronic thing. I can't monitor my position in the queue, you know?” added another resident.

Vice President of the Association of Kazakhstan Automobile Business Anar Makasheva urged citizens not to panic. She stated that the program would operate transparently. Makasheva announced a detailed algorithm for obtaining a preferential car loan.

First, citizens need to come to a car dealership and choose a car. Then, if the car is available, the consumer will be given an invoice for payment indicating the VIN code of the chosen car, so that the consumer could then go to a second-tier bank and apply for a preferential car loan program. The registration procedure for the vehicle will begin once the bank makes an approval and issues a guarantee letter and gives it to the consumer. The car will need to be registered. To do this, there is a certain list of documents that can be found on the Egov website,” Makasheva explained.

100 billion tenge (US$232 million) was allocated for the implementation of the program. According to its terms, any Kazakh citizen can buy a car at 4 percent. The amount of the loan is not more than 10 million tenge (US$23,200) for up to seven years. The down payment is 0 percent, but the total cost of the car should not exceed 15 million tenge (US$34,800).


Translated by Assem Zhanmukhanova

Editing by Galiya Khassenkhanova