Use of Lump-Sum Pension Payments

Dear clients!

In accordance with paragraph 5 of the Rules for the use of lump-sum pension payments to improve housing conditions under the legislation of the Republic of Kazakhstan, approved by Order No. 24 of the Minister of Industry and Infrastructure Development of the Republic of Kazakhstan dated 21.01.2021, lump-sum pension payments may be used for the following purposes:

• full settlement under civil-law transactions related to the acquisition of housing into ownership under contracts of purchase and sale, privatisation, instalment payment or exchange of housing, under shared participation agreements in housing construction, as well as for the construction of an individual residential house

• making a down payment to obtain a mortgage housing loan for the purchase of housing

• obtaining, partially or fully repaying the debt on, or refinancing a mortgage housing loan

• purchasing housing under Islamic bank financing, partially or fully repaying the debt under Islamic bank financing

• partial or full repayment of debt under long-term housing lease agreements with the right of purchase

Under the law, a mortgage housing loan is granted for the purpose of “construction of housing or its purchase and (or) repair”.

Shinhan Bank Kazakhstan JSC provides individuals with mortgage loans for consumer purposes without confirmation of intended use. Therefore, loans from the Bank are not mortgage housing loans, and the use of lump-sum pension payments to repay them is not permitted under the established rules.

The Bank advises that it cannot issue a certificate of loan indebtedness stating housing-related purposes or the repayment of a mortgage housing loan obtained from another credit institution.