Kyrgyzstan’s Microloan Market Expands as Borrower Numbers More Than Double

The volume of microloans issued in Kyrgyzstan rose sharply in the first quarter of 2026, while the number of borrowers more than doubled, highlighting the growing role of digital lending in the country’s financial sector. Microcredit organizations issued loans worth more than $263 million to approximately 807,000 borrowers between January and March, according to data from the National Statistics Committee. The total value of microloans increased by 23% compared with the same period a year earlier, while the number of recipients more than doubled. The growth was driven largely by the expansion of short-term online lending services. Consumer loans accounted for the largest share of lending activity, making up 63% of all microloans issued. Loans for agricultural development represented more than 16% of the total, while lending to trade and catering businesses accounted for more than 9%. Bishkek accounted for the largest share of borrowers, with around 46% of all microloan recipients nationwide. The Chui region represented 12% of recipients, followed by the Osh region at about 10% and the Jalal-Abad region at 9.5%. The figures show the increasing importance of microfinance in Kyrgyzstan, where access to credit has expanded rapidly through digital platforms and non-bank financial institutions The expansion of the sector has also prompted regulators to tighten consumer protection measures. In November 2025, Kyrgyzstan introduced a voluntary self-restriction mechanism that allows individuals to block loans or credit products from being issued in their name. The measure was designed to combat fraud involving stolen or forged identity documents. Under the regulation, banks and microfinance institutions must check whether a customer has activated such a restriction before approving a loan. The rest of the financial sector also expanded. As of the end of March 2026, Kyrgyzstan had 483 financial institutions in operation, including the National Bank, 24 commercial banks, and 439 non-bank financial organizations, according to the National Statistics Committee. The number of client accounts across the financial sector exceeded 23 million, nearly 6 million more than a year earlier. Most of the increase came from the banking sector, which added approximately 5.7 million client accounts. Financial institutions reported combined profits of more than $400 million in the first quarter, more than double the level recorded during the same period of 2025. The National Bank posted the largest increase in earnings during the period.

Uzbekistan Plans AI-Based Lending Platform to Expand Financing for Small Businesses

Uzbekistan’s president Shavkat Mirziyoyev has reviewed proposals aimed at expanding financial support for small and medium-sized businesses, including the launch of a digital lending platform that would use artificial intelligence to assess borrowers and improve access to credit, according to Uzbekistan’s presidential press service. The proposals are part of a wider effort to increase the role of small businesses in the economy and reduce barriers to financial services. Despite years of reforms, officials said many entrepreneurs in Uzbekistan still face difficulties obtaining loans, particularly those without a credit history. According to figures presented during the meeting, the total loan portfolio allocated to small and medium-sized businesses has reached 218 trillion UZS, or about $17.3 billion, equivalent to around 12% of the country’s GDP. However, unsecured online microloans remain limited, and obtaining such financing currently takes up to seven days on average. The government plans to address these challenges through a new digital financial platform where entrepreneurs will be able to submit loan applications, receive offers from several banks simultaneously, compare terms, and choose the most suitable option. The platform is expected to be integrated with Uzbekistan’s e-government databases, allowing banks to automatically access information on businesses. Officials said this would reduce paperwork, shorten processing times, and limit human influence in lending decisions. One of the most significant proposed changes is the introduction of an alternative credit scoring system using elements of AI, scheduled for implementation from December 1, 2026. Unlike traditional scoring models that rely mainly on previous borrowing history, the new approach would consider factors such as business activity, utility payments, turnover, tax records, and other digital indicators. The aim is to enable banks to assess entrepreneurs who have never taken out loans before, potentially widening access to financing for startups and small enterprises operating outside conventional banking criteria. The government also plans to use AI tools to generate recommendations for improving creditworthiness, evaluating business risks, and supporting business development. Commercial banks may also introduce an “AI consultant” program designed to help entrepreneurs develop business ideas and identify financing opportunities based on local economic specialization and growth potential within neighborhoods, known as mahallas. Other measures under consideration include increasing the unsecured portion of microloans for borrowers with positive repayment records from 100 million to 200 million UZS. Interest expenses on loans or leasing arrangements of up to 5 billion UZS would also be partially compensated regardless of the total loan or lease size. Officials also proposed annual grants of up to 300 million UZS for 100 high-performing businesses to support digitalization, the adoption of international standards, and green technologies.