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Individual loans provided to individuals by products / Terms and Tariffs /

Car purchase loan

1.	Loan purpose	Auto loans are designed for purchasing brand-new or used cars/vehicles for personal use.
2.	Eligibility	RA residents aged 18 – 65 who during the loan period will not turn 65 or the loan will be shared by a co-borrower who meets these requirements.
3.	Loan currency	AMD
4.	Loan amount	4,000,000 - 50,000,000
5.	Loan period	For fixed rate loans: 36 - 60 months For floating rate loans: 61 - 84 months
6.	Loan repayment schedule	Annuity payments (the total of the principal and interest amounts will be payable in equal amounts on a monthly basis) Flexible (equal principal repayments) to be made on a monthly basis
7.	Place of loan documentation	Car showroom/partner organization Bank
8.	Annual interest rates			Nominal rate		Actual rate
		Acquisition in primary market		13% - 17%		13.86% - 20.88%
		Acquisition in secondary market		15% - 19%		16.46% - 21.17%
9.	Cases of application of floating interest rates	The floating interest rate will be set to equal the fixed component started at 5% + variable component Maximum and minimum range of fluctuation of floating interest rate: the fixed annual interest rate ±2% The variable component of the floating rate will be revised starting the first due date after the 36-month period of loan origination and every 6 months afterwards using the variable rate (published on the website) applicable in the Bank at the time of revision. Procedure for calculation of floating interest rate Used cars will be approved only if they are not older than 3 years
10.	Penalty for early loan repayment	Not applicable
11.	Penalty for late payment of principal and interest	For past due principal amount - 0.015% per day For past due interest - 0.1% per day.
12.	Loan security	The vehicle to be purchased while not older than 7 years, For Russian vehicles, the loan will be issued solely if the car is purchased in primary market, The following vehicles cannot be pledged as security for the loan: 1. Vehicles transporting dangerous goods: toxic substances, chemicals, radioactive and explosive materials, 2. Cars intended for competitions and car trial runs or three-wheeled or snow removal vehicles, motorcycles or special purpose vehicles In individual cases, when relevant legal bases are available, the Bank can consider the car as purchased in the primary market if it is imported to Armenia and underwent customs clearance by the borrower within a one-month period and is flawless and fully functional (can be used for driving), Taxi vehicles and rental cars may be purchased from Bank partner-showrooms, The Bank’s competent body may require surety bonds of individuals and/or legal entities, in individual cases, also other security items acceptable to the Bank.
13.	Collateral appraisal	If the car is purchased from a car showroom, no appraisal will be conducted, rather, the collateral value will be based on the value/selling price indicated by the selling company in the Bank’s electronic system or a certificate issued by the latter. If the car is purchased in the secondary market, the collateral appraisal will be implemented by a Bank partner-appraisal company or a competent employee of the Bank.
14.	Down payment	Primary market	With income analysis		Without income analysis
			Minimum 10%		Minimum 30%
		Secondary market	With income analysis		Without income analysis
			Minimum For 3-year-old or younger cars - minimum 20% For cars aged 3- 7 years – minimum 30%		Minimum 40%
15.	Loan disbursement method	Non-cash
16.	A lump-sum fee for loan disbursement or monthly loan service fee	Not applicable
17.	Additional payments to be made by the borrower	Payments to a competent state body for purchasing the car and collateral registration Other payments, according to the Bank’s FEES AND RATES. For cars purchased in primary market (through a car showroom), no fee will be charged for movable property collateral approval (documentation).
18.	Insurance	Full CASCO insurance - each year throughout the loan period to cover at least the outstanding loan principal. If the car is purchased in primary market, CASCO insurance may be bought at the expense of the Bank to cover the outstanding loan principal, in line with the terms and conditions of the agreement made between the Bank and partner company. If the car is purchased in the secondary market, the CASCO insurance will be bought at the expense of the Bank to cover the outstanding loan principal, If the CASCO insurance is bought at the expense of the borrower, the annual nominal interest on the loan will be reduced by 1 percentage point.