NUR-SULTAN / ex ASTANA (Satrapia) – Kazakh Banks have tightened requirements for borrowers in Q1 2021, the National Bank of Kazakhstan (NBK) said.

According to a survey released by NBK on Thursday, the approval rate of banks has fallen from 70% in Q4 2020 to 55% in Q1 2021. In the same time, the number of applications for online loans for small businesses increased by 1.5 times to 120,000 and by 28% to 244,000 in the first quarter of 2021.

The number of mortgage loan applications fell seasonally by 22% during the quarter, to around 75,000, according to the regulator.

In consumer loans, the demand for unsecured loans increased, with the average amount rising by 5% to 515,000 tenges. Applications for car loans fell by 5% and the average amount fell by 11.3%.

Banks expect demand for mortgage and unsecured loans to grow in Q2 2021 and plan to soften conditions on car loans, the information says.