Baku, September 26, 2025
Quick and collateral-free online loans are being widely advertised on social media in Azerbaijan. For many, they appear to offer an easy way out of financial trouble. In reality, experts warn, most of these offers conceal fraud, predatory interest rates, or outright scams.
What are online loans?
According to Akif Nasirli, head of the Liberal Economists Center, online loans are a legitimate financial product when offered by banks or licensed credit institutions:
“A customer applies online, receives preliminary approval without visiting the bank, and the funds are transferred directly to their card or account. Legal online loans always involve a contract, with the interest rate, term, and repayment schedule clearly stated.”
But many offers circulating on social media do not come from regulated institutions. Instead, they are designed to exploit borrowers. Fraudsters often demand an “upfront fee for security” but never disburse the loan. Others advertise loans at annual rates of 30–70 percent or higher, far beyond official bank rates. In many cases, ID and bank card details are requested and then misused.
How to protect yourself
Nasirli, talking to Globalinfo.az, stressed that borrowers must take several precautions:
Always check whether the lender is listed and licensed by the Central Bank of Azerbaijan (CBA).
Never take money without a written contract that clearly specifies interest, penalties, and commissions.
If asked for an upfront payment before receiving the loan, it is a scam.
Provide personal and banking details only through official bank websites or mobile apps.
Be skeptical of ads promising “credit in 5 minutes” or “no documents, no interest.”
“Online loans should only be taken from licensed banks or financial institutions,” Nasirli said. “Suspicious offers on social media drag people into a debt trap, often with devastating consequences.”
