AZE.US
Credit problems can put borrowers at risk of losing property in Azerbaijan, but that usually happens only after a long period of missed payments and failed communication with the bank, banking specialist Nahid Rafail said.
Rafail told Demokrat.az that more people in Azerbaijan may now be struggling to meet their loan obligations as household incomes come under pressure.
He said the reasons can include falling family income, unexpected expenses, job changes and the broader impact of economic conditions on personal budgets.
“When borrowers face such difficulties, some of them are unable to make loan payments on time. But losing property because of credit debt is usually the result of a long process,” Rafail said.
According to him, banks in Azerbaijan do not see the sale of pledged property as the preferred outcome. Such cases take time and require additional legal procedures.
For that reason, banks usually try first to reach an agreement with the borrower. Possible solutions may include lowering the monthly payment, extending the loan term or preparing a new repayment schedule.
Rafail said the risk of losing property is higher for borrowers who stop making payments for a long time and avoid contact with the bank.
“Some people, when they face financial difficulties, try to hide the problem or delay dealing with it. The right step is to inform the bank in time and look for a way out,” he said.
He added that borrowers should calculate monthly payments carefully before taking a loan, taking into account the family budget and possible emergency expenses.
Timely action, Rafail said, can help protect a person’s credit history and reduce the risk of losing property.
AZE.US