Head of Otbasy Bank addressed Kazakhstanis regarding loan arrears

Tengrinews.kz — Lyazzat Ibragimova, Chairperson of Otbasy Bank, has urged Kazakhstanis to make timely payments on all loans, including small ones. She noted that every day of delay can ultimately affect a borrower's credit score and the bank's decision on a loan.
During a government briefing, Ibragimova was asked whether the number of rejections for Otbasy Bank applications has increased following the active use of pension savings by Kazakhstanis.
According to her, the rejection rate has remained relatively stable. However, rejection decisions are made by a scoring system that takes an individual's previous credit history into account.

"The system calculates based largely on your previous credit history—specifically, any outstanding debts or payment delays you have had. Therefore, I urge all Kazakhstanis, even those taking very small loans from microfinance organizations, pawnshops, and second-tier banks, to be aware that every day of delinquency will significantly impact your credit score," Ibragimova stated.

The head of Otbasy Bank noted that citizens often contact her via e-Otinish and social media regarding rejections. However, it is impossible to manually override the scoring system's decision.

"Unfortunately, the scoring system is built on the principle that humans cannot interfere. This means it has analyzed your entire history and lowered your score accordingly," the bank chairperson explained.

What is a scoring system?
Credit scoring is an automated assessment of a potential borrower that helps a bank determine their creditworthiness and the likelihood of timely repayment.
In the case of Otbasy Bank, as Ibragimova explained, the system analyzes the client's previous credit history, including existing debts and past-due payments. The scoring result is calculated based on this data.
The higher a borrower's score, the lower the perceived risk for the bank when issuing a loan. Delinquencies and problematic debts can lower the scoring points and, consequently, influence the decision on the application.
Furthermore, according to Ibragimova, bank employees cannot manually intervene in the scoring assessment or change the score calculated by the system.
Previously, the Agency for Regulation and Development of the Financial Market (ARDFM) developed a document under which credit reports will no longer include information on overdue payments, fines, and penalties for microloans secured by vehicles and other movable property.
If the document takes effect, delinquencies on pawnshop loans may stop affecting the credit histories of Kazakhstanis.