ABA: 26% of business loans and 88% of consumer loans are provided without collateral

As of July 1 this year, 26% of business loans in Azerbaijan were unsecured loans, President of Azerbaijan Banks' Association Zakir Nuriyev said, Report informs.

“Compared to the same period last year, there is a 1% increase in the amount of unsecured loans granted to businesses. 36% of microloans were granted without collateral. These loans have been up by 31% over the past year,” he noted.

“By the end of June, 88% of consumer loans were provided without collateral. When these loans are granted, no distinction is made between Baku and the regions. It doesn't matter where the loans are given, as the debt-to-income ratio is taken into account here, and loans are mostly given online. Thus, only the person's income is taken into account,” Zakir Nuriyev said.