Kyrgyzstan Introduces Voluntary Loan Block to Protect Citizens from Financial Fraud

Starting November 1, Kyrgyzstan will implement a self-restriction mechanism that allows citizens to voluntarily block the issuance of loans and credits in their name.

The measure is designed to protect individuals from financial fraud involving unauthorized loans, The Caspian Post reports, citing The Times of Central Asia.

Announcing the initiative at a press conference on October 30, Bektur Aliyev, Deputy Chairman of the National Bank of Kyrgyzstan, said the new regulation comes in response to a rise in cases where fraudsters used fake or stolen passports to secure loans online.

The self-restriction can be activated or revoked remotely at any time via the State Portal of Electronic Services or the Tunduk mobile app. Once submitted, the restriction takes effect immediately, while cancellations require a 12-hour waiting period.

Financial institutions, including banks and microfinance organizations, are legally required to check for any active self-restriction before issuing a loan. If such a restriction is in place, the loan cannot be granted. Should a loan be issued during the restricted period, the contract is deemed legally invalid and the lender has no legal grounds to demand repayment.

According to the National Statistics Committee, microcredit organizations issued over 40 billion soms in loans to more than 567,000 recipients in the first half of 2025. More than 60% of those loans were for consumer purposes, and the volume of microloans increased by 34% compared to the same period last year.

A similar voluntary loan restriction system has been in place in Kazakhstan since 2023.