Customers restructuring their daily loan debt in Non-Bank Credit Organizations (NBCOs) will not be required to pay additional fees.
“Elchi” reports that this was stated by Khayyam Ismayilov, Director of the Department for Supervision of Non-Bank Credit Organizations at the Central Bank of Azerbaijan (CBA).
According to him, the new approach regarding daily loans is being implemented to address processes occurring in the sector and to prevent negative practices.
Kh. Ismayilov noted that the upper limit for daily loans has been set at 500 AZN, the daily interest rate at 0.3%, and the maximum repayment period at 45 days.
“Our main goal is to prevent excessive consumer indebtedness and protect their rights. The additional cost for all payments by a customer should not exceed 100% of the loan amount taken. For example, if a person takes a loan of 100 AZN, their additional cost cannot exceed 100 AZN,” the CBA official stated.
He added that it is prohibited to take movable and immovable property as collateral for daily loans.
According to Kh. Ismayilov, restrictions were previously applied to the restructuring of daily loans as well. However, this rule has been changed taking into account consumers’ overdue debts.
Under the new rule, a customer will be able to restructure the remaining debt for another 45 days by paying 20% of the loan debt.
“Even if restructuring is carried out, the total additional cost to be paid by the customer must not exceed the 100% limit of the loan amount. No additional costs should be demanded from the customer. Our main focus here is the citizen, that is, the borrower,” he emphasized.