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Transparent Pricing In Azerbaijan

Please note that MFTransparency is no longer collecting new pricing data. The data displayed for this country is for historical purposes only and does not represent current products or prices in the country. Note that the age of the information for each MFI is indicated in the table below.

The Transparent Pricing Initiative in Azerbaijan has published standardized pricing data from 11 institutions, representing nearly half a million active borrowers. Launched in 2009 the Initiative was delivered in partnership with the Azerbaijan Microfinance Association (AMFA) and sponsored by KfW. The Initiative was instrumental in instigating awareness and commitments towards responsible finance and pricing transparency among the industry actors. 

Microfinance in Azerbaijan
  The microfinance sector in Azerbaijan originated in the post conflict era of the 1990s when international relief organizations started providing microfinance services in response to the humanitarian crisis. Later, the steady growth of the sector, together with intensified competition resulting from the entrance of commercial banks to the market, triggered the Central Bank of Azerbaijan to revoke the humanitarian status of non-bank credit institutions (NBCOs). During the past decade, the industry has shown remarkable growth in the number of microfinance institutions, active borrowers served and gross loan portfolio disbursed. Down scaling commercial banks, credit unions and non-bank credit organizations (NBCOs) are the main players in the Azerbaijan microfinance landscape.

Truth-in-Lending Legislation

The Central Bank of Azerbaijan regulates banks and non-bank credit institutions. The Law on Non-bank Financial Institutions enacted in 2009 and the subsequent guidelines issued structured the regulatory framework of the Microfinance industry. Although there exists general legislation for consumer protection and rights, legislation covering truth-in-lending and specific Acts relevant to consumers of financial services have not yet been initiated.  The Azerbaijan Microfinance Association (AMFA) is a key figure in promoting and advancing consumer protection and responsible finance among its members.

Azerbaijan Price Graph

The Price Graph for the Azerbaijan microfinance market is relatively shallow with APR (int+fee+ins) ranging between 24% and 53%.

The vast majority of financial institutions included in the dataset calculate their interest rates using the declining balance method. Many of the institutions analyzed could improve their level of transparency when communicating their prices to clients by disclosing fees and charges on the client repayment schedules. Non-disclosure of fees impedes the ability of borrowers to compare products or to make informed choices about loan products.

Azerbaijan Institutions

Institution# BorrowersPortfolio (US$)ProductsTransp. IndexParticipating SinceAge of Data
AccessBank82,400199,224,0004722010-May91 mos.
Bank of Baku59,500123,214,0004702010-May91 mos.
CredAgro22,006N/A4N/A2009-1072 mos.
DemirBank14,10025,597,0002712014-Sep36 mos.
FINCA154,600233,358,00012702010-May36 mos.
Caspian Invest1,100695,0001N/A2012-0567 mos.
Parabank10,30037,235,0003762010-May91 mos.
Turanbank2,600326,0005892010-May91 mos.
Unibank80064,0001602010-May91 mos.
AzerCredit30,137N/A9N/A2009-1091 mos.
Viator19,50020,468,0008802014-May35 mos.
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Key Statistics
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Country InstAbbrev SampleCode Loan Amount USD Loan Term (Months) SampClients FullAPR DateApproved
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