11:09 - 10.06.2024

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June 10, Fineko/abc.az. The Central Bank has made changes to the rules regarding consumer loans. So, according to the new rules, insurance will be used in consumer lending, ABC.AZ reports, quoting MP Vugar Bayramov.

The MP added that previously, in the event of the death of the person who took out the loan, the latter was returned by his family, which in some cases created a serious financial burden for the family:

"Therefore, that is why we previously proposed using insurance in consumer lending. Currently, the volume of consumer loans is about 7 bn manats, and at the same time, 3 million of our citizens use consumer loans. In this regard, the use of insurance practically not only minimizes such cases, but can also lead to a decrease in interests on the loan. Because risk management is very important in terms of reducing the interest rate on a loan.

The expectation in this regard is that the use of insurance will affect interest rates on consumer loans, and in practice this may lead to lower interest rates on loans offered by commercial banks, with the offer of cheaper loans with a lower interest rate.

Offering loans at lower interest rates is naturally important in terms of increasing affordability. Another important point in these rules is to expand access to loans for people with disabilities, and at the same time, if there is a change in the degree of disability, this is compensated by insurance."