Fariz Huseynov, a 35-year-old resident of Sumgayit with a congenital visual impairment, faces persistent difficulties in accessing consumer loans.
Despite receiving a monthly pension of 870 AZN from the International Bank alongside his son, Huseynov has been denied credit for years. According to him, financial institutions do not recognize his pension as sufficient income and require additional legal documentation, including a power of attorney and a third-party witness, even for basic services like renewing a pension card or obtaining a debit card.
“Until 2014, we could get a loan, though it was challenging. Now, even store chains refuse credit. This discrimination isn’t explicitly stated in the bank’s policies,” Huseynov said.
Huseynov’s case reflects a broader issue faced by people with disabilities in Azerbaijan. Among the country’s more than 500,000 disabled citizens, 67,000 are visually impaired, with 15,000 classified as Group I disabled, the most severe category. The number of Group I disabled individuals has more than doubled over the past decade, now reaching 62,900. Yet, despite state pensions, these individuals struggle to access loans due to high expenses, low income, and unemployment.
Only 11-12% of disabled people are employed in Azerbaijan’s labor market, and none of them are Group I disabled. Even those with stable jobs and pensions, like Huseynov, are often denied loans, as banks view their disability pensions as insufficient.
Banking experts suggest that financial institutions are hesitant to extend credit to disabled individuals due to perceived risks, despite legal provisions that should prevent discrimination. Economist Elman Sadigov explains that banks consider the high expenses and low income of this vulnerable group, fearing conflicts over repayment.
“Financial transactions are risky for mentally disabled and visually impaired people,” Sadigov said, highlighting the need for guardians and witnesses in these cases. This cautious approach is intended to protect banks from potential legal challenges but further restricts the financial independence of disabled individuals.
Despite official statements from banks claiming no restrictions on loans to disabled individuals, experts argue that internal procedures and risk assessments effectively exclude them. Recent changes in insurance regulations have also complicated matters, as new rules exempt those with pre-existing disabilities from “Life Insurance” coverage, further limiting their access to loans.
