New requirements governing credit risk management by banks in Azerbaijan will take effect on October 1. The rules introduce new procedures for online consumer loans and the transfer of loan funds to customers.
Under the new regulations, individuals will be able to block online consumer loans or increases to existing credit limits in their name by submitting a written request to their bank. The restriction will apply across all sales platforms.
Customers will be able to remove the restriction by visiting the bank in person or submitting an application using an enhanced electronic signature or enhanced customer authentication.
Banks will also be required to verify whether a customer has an online credit restriction both through their internal systems and the Credit Bureau database. If a person with such a restriction applies for a loan remotely, the bank must immediately notify them via its mobile app or SMS.
The new rules also introduce a waiting period before online loan funds are transferred. Loans up to twice the minimum monthly wage will be transferred two hours after the agreement is signed or amended, while loans exceeding that amount will be subject to a 24-hour waiting period.
The new requirements will apply not only to banks but also to non-bank credit organizations (NBCOs) operating in Azerbaijan.
