Azerbaijan Central Bank introduces new remote consumer loan rules

The Central Bank of Azerbaijan has established new requirements for remote consumer loans, effective October 1. Under these regulations, customers can submit written requests to banks and non-bank credit organizations (NBCOs) to restrict the remote processing of consumer loans or the increasing of credit limits.

These restrictions can only be lifted through physical presence at a bank, an enhanced electronic signature, or enhanced customer authentication. Financial institutions must verify such restrictions using both their internal systems and the credit bureau's information system. If a customer attempts to apply for a remote loan or limit increase after setting a restriction, banks must immediately notify them via SMS or mobile application.

Furthermore, the disbursement of funds for remote loans or increased limits will no longer be instantaneous. For amounts up to twice the minimum wage, funds will be provided two hours after the contract is finalized. For amounts exceeding twice the minimum wage, funds will be released after 24 hours. Loan contracts must also include provisions regarding the borrower's release from obligations related to the granted or increased credit.