OMM Redaksiyası
New rules on credit risk management by banks are coming into force in Azerbaijan. Citizens will be able to block the issuance of online consumer loans in their name in advance.
Operative Information Center-OMM reports that the new requirements approved by Central Bank Chairman Taleh Kazimov on April 28 will take effect on Oct. 1, 2026.
Citizens will be able to block online loans
Under the new rules, following a customer’s written request, a bank must fully restrict the remote issuance of a consumer loan in that person’s name or the increase of an existing credit limit.
The restriction will apply across all of the bank’s sales platforms.
A citizen will be able to lift the ban only by applying to the bank in person or submitting a written application using an enhanced electronic signature or enhanced customer authentication.
Additional checks will be conducted before a loan is issued
After the lending institution’s internal systems establish that no such restriction has been placed on the borrower’s name, the information must also be verified through the Credit Bureau’s database.
It will not be possible to issue a new remote loan or increase a credit limit in the name of a person who has blocked online lending.
If a remote loan application is submitted in the name of a person who has imposed such a restriction, the bank must immediately notify the customer through its mobile application or by SMS.
Waiting periods will apply to online loans
The new rules also establish waiting periods before funds from remotely issued loans can be transferred to customers.
These are as follows:
- Loans of up to twice the minimum wage – paid two hours after the contract is signed or amended;
- Loans exceeding twice the minimum wage – paid 24 hours after the contract is signed or amended.
Customers must be informed about these periods in advance.
New provision to be added to credit agreements
Consumer credit agreements must include a provision allowing the debtor to be released from the obligation if the loan is issued or the credit limit is increased.
In addition, when a loan is issued remotely, information on whether a restriction on online lending has been placed in the borrower’s name must be included in the credit file.
The new requirements will apply not only to banks but also to non-bank credit organizations (NBCOs).
One of the main aims of the rules is to enhance customer security during remote loan issuance and strengthen credit risk management.
