What should I check before signing a loan contract?
Check seven clauses: the effective annual rate (not the nominal), all fees (arrangement, account servicing, cash withdrawal), insurance and whether it is voluntary, the repayment schedule and first payment date, how the late penalty is calculated, early repayment terms, and any right of the bank to change the rate unilaterally. Always take a signed copy (or PDF) of the contract and schedule.
A loan contract runs 10–20 pages and most people sign without reading it. Yet this is exactly where the gap between a bank's advertising and the contract text hides: a "from 12%" rate becomes an effective 19% on page 14, a "free" credit card has an annual fee, early repayment is "penalty-free" but only after 6 months. This page is a practical checklist for reviewing a contract in 15 minutes.
What you need
- 1 Effective annual rate; it must be stated separately in the contract
- 2 Fee schedule: one-off and recurring, as amounts or percentages
- 3 Repayment schedule: each month's date, principal/interest split, total payment
- 4 Clauses on penalties, early repayment, rate changes and dispute resolution
Bank offers that fit this case
| Bank | Loan | Rate | Term | |
|---|---|---|---|---|
Rabitəbank
|
Nağd Pul Krediti | 10.5% | 48 mo. | Details |
Yelo Bank
|
İstehlak Krediti | 8.9% | 59 mo. | Details |
Unibank
|
Nağd Kredit | 9% | 60 mo. | Details |
|
Yelo Bank
|
Onlayn Kredit | 8.9% | 59 mo. | Details |
İnkişafa Dəstək Krediti
|
Istehlak Krediti | 30%-dən başlayaraq% | 24 ayadək mo. | Details |
Yapı Kredi Bank
|
Əmək Haqqı Krediti | 12% -dən% | 59 ayadək mo. | Details |
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Bank BTB
|
Nağd Pul krediti | 18%-dən başlayaraq% | 48 ayadək mo. | Details |
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Merkuri BOKT
|
Nağd Pul Krediti | 21%-dən başlayaraq% | 36 ayadək mo. | Details |
Sample calculation
Estimated figures for 5 000 AZN over 36 months at ~8.9% effective rate. The exact number depends on the bank.
How to apply?
What to watch for?
- ✓ Subtract the loan amount from the schedule's total payment: that is the real overpayment; compare it with the advertised rate.
- ✓ If there is a clause letting the bank change the rate unilaterally, clarify when and with what notice, and have it removed if possible.
- ✓ Do not sign a contract with blank fields or fields "to be filled in later".
- ✓ For an online loan, read the contract PDF fully before signing with ASAN Imza; the signature has the same force as a handwritten one.
Frequently asked questions
Can I change my mind after signing?
Legislation may provide a "cooling-off period" for consumer loans; otherwise you effectively cancel by repaying in full immediately, paying interest only for the days used.
Must the bank give me a copy of the contract?
Yes, you must receive a copy of the signed contract and the repayment schedule. For online loans the PDF is provided by email or in the app; keep it.
The rate in the contract is higher than advertised. What now?
Do not sign and ask for the difference to be explained. If the advertised rate is a "from" rate, a different rate for your profile is legal, but the effective rate must be stated clearly in the contract.
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