13:19 - 12.10.2026

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October 12, Fineko/abc.az. Azerbaijan has established a new limit on the debt burden for individuals acting as guarantors of consumer loans.

The relevant decision was signed by Central Bank of Azerbaijan’s governor Taleh Kazimov.

According to the decision, if the surety acts as a security for a consumer loan, the ratio of debt to income of the guarantor should not exceed 70%.

This means that the guarantor's debt burden should not exceed 70% of his income. For example, with monthly income of 1,000 manats, debt payments should not exceed 700 manats. Otherwise, a person will not be able to act as a guarantor for a consumer loan.

The new requirement will apply to credit claims that arose after November 10.

According to CBA's decision, consumer loans are given to borrowers whose debt-to-income ratio does not exceed 70%, except in certain cases.

In particular, when giving consumer loans in national currency, the following types of collateral are allowed:

deposits with the same bank belonging to the borrower or a third party, if the ratio of credit to collateral does not exceed 100%;

other types of collateral of the first group, if this coefficient does not exceed 90%;

precious metals deposited with the bank as collateral, with the exception of bank metals, if this ratio does not exceed 70%.

When giving consumer loans in foreign currency, an exception is provided if the collateral is deposits in foreign currency placed in the same bank and owned by the borrower or a third party, or other types of collateral of the first group. In these cases, the loan-to-collateral ratio should not exceed 90%.

In addition, the total volume of consumer credit lines, the limit of each of which exceeds 5-fold the amount of the borrower's net income after taxes, should not exceed 1% of the bank's first-tier capital, minus the amounts provided for by law.

When calculating the debt burden, the borrower's obligations to all credit institutions are taken into account, with the exception of credit lines secured by the types of collateral listed above.