The Development Bank is the operator of the Preferential Automobile Lending Program, which was launched on April 20, 2015. Within the framework of the Program, the Bank coordinates applications received from STB for compliance with the following financing conditions for end-use borrowers: car model of domestic assembly, the maximum cost of 1 unit of car, interest rate, loan term. Second-tier banks are engaged in the review, the test of solvency and approval of loans to individuals.
The terms of lending to individuals for the purchase of cars of domestic production are as follows: the nominal interest rate is not more than 4% per annum, while the annual effective rate (including insurance and pledge costs for vehicles) should not exceed 7.5% per annum. The loan term is not more than 7 years, the loan currency is tenge, the cost of one unit of passenger vehicles is not more than KZT 15 million.
Financing of the Preferential Automobile Lending Program is revolving in nature, that is, payments from the repayment of existing loans are directed to car loans again.
The interbank financing program was launched in 2014. For the support of large-sized entities (hereinafter referred to as the LSE), the borrowed funds totaling KZT 100 billion were allocated to the Development Bank through interbank lending mechanisms in accordance with the following decisions of the Government of the Republic of Kazakhstan:
- Resolution of the Government of the Republic of Kazakhstan No.1276, dated December 5, 2014
- Resolution of the Government of the Republic of Kazakhstan No.124, dated March 11, 2015