Experts from Ranking.kz conducted an analysis of the current auto loan offerings in Kazakhstan to determine which banks provide the lowest interest rates and which have less favorable terms. The changes in rates compared to the previous year and the conditions under which one can obtain a car loan today are detailed in this material.
Which banks offer the lowest rates
According to Ranking.kz experts, out of 21 second-tier banks, 10 provide auto loans, including 7 of the largest lending banks whose products are accessible to most citizens.
The maximum annual effective interest rate (AEIR) must not exceed 35 percent, a threshold established by the Agency for Regulation and Development of the Financial Market (ARDFM).
Experts note that the most advantageous conditions today are offered by ForteBank, where the maximum AEIR is 25.3 percent. This bank allows loans for both new vehicles and used cars, provided the vehicle is no more than 8 years old.
Next are Bank CentrCredit and Freedom Bank, both with a maximum AEIR of 25.6 percent. However, according to Ranking.kz, this rate at Bank CentrCredit applies only to new cars. For used vehicles, the maximum AEIR increases to 32.24 percent.
At Halyk Bank, the maximum AEIR is 28.3 percent for new cars and 30.1 percent for used vehicles.
Meanwhile, Bereke Bank and Eurasian Bank have rates reaching the maximum level of 35 percent, as indicated on the banks' official websites.
Terms and amounts
According to researchers, the maximum term for auto loans is 7 years, a term offered by six of the seven largest banks.
The maximum loan amount ranges from 18 to 50 million tenge, depending on the specific bank's conditions.
Why are auto loans still relevant?
Experts emphasize that the ability to obtain an auto loan remains crucial for Kazakhs, as a significant portion of the country's vehicle fleet consists of cars older than 10 years.
As reported by the National Statistics Bureau, as of early February 2024, there were 5.1 million registered passenger cars in Kazakhstan, which is a 7.6 percent increase compared to the previous year. However, two-thirds of the vehicles in the country are over 10 years old. Among them, 1.2 million cars were produced 10 to 20 years ago, and an additional 2.2 million vehicles are over 20 years old.
According to analysts, auto lending contributes to the renewal of the country's vehicle fleet, which not only improves the environmental situation but also enhances road safety. Furthermore, accessible auto loan conditions enable citizens to acquire more modern and fuel-efficient cars, positively impacting their quality of life.
ARDFM License No. 1.2.29/197/36 dated 03.03.2020
