The rules for issuing loans have changed in Azerbaijan: what do you need to know? The Central Bank of Azerbaijan (CBA) has updated the requirements for the conditions for providing consumer loans and loans. According to the new decision, the ratio between a guarantor's debt load in consumer loans and his income will not exceed 70%. In addition, if the borrower's income can be confirmed in official documents or through government information systems, the banks are prohibited from evaluating them according to a behavioral model. According to economist Rashed Hasanov, the new requirements of the central bank will limit the ability to attract guarantors when applying for loans. He also noted that the decision will affect the behavioral lending model, which began to be used in Azerbaijan in the last three years. "The possibilities of attracting guarantors to the loan process are already shrinking. The second point concerns behavioral loans. During the last three years, they began to implement this practice in Azerbaijan. The new requirements are aimed at limiting the possibilities of using this model. " - noted the expert. According to him, when issuing consumer loans to people whose income is confirmed by official sources and data, the banks will no longer be able to determine the credit limit considering the borrowers' behavioral expenses and other indicators. "And that's limiting." Gesnov concluded.

The rules for issuing loans have changed in Azerbaijan: what do you need to know? The Central Bank of Azerbaijan (CBA) has updated the requirements for the conditions for providing consumer loans and loans. According to the new decision, the ratio between a guarantor's debt load in consumer loans and his income will not exceed 70%. In addition, if the borrower's income can be confirmed in official documents or through government information systems, the banks are prohibited from evaluating them according to a behavioral model. According to economist Rashed Hasanov, the new requirements of the central bank will limit the ability to attract guarantors when applying for loans. He also noted that the decision will affect the behavioral lending model, which began to be used in Azerbaijan in the last three years. "The possibilities of attracting guarantors to the loan process are already shrinking. The second point concerns behavioral loans. During the last three years, they began to implement this practice in Azerbaijan. The new requirements are aimed at limiting the possibilities of using this model. " - noted the expert. According to him, when issuing consumer loans to people whose income is confirmed by official sources and data, the banks will no longer be able to determine the credit limit considering the borrowers' behavioral expenses and other indicators. "And that's limiting." Gesnov concluded.