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

    1.            

Loan purpose

Loans are designed for purchasing or ordering of goods (services) for non-commercial, personal, family and household 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 amount

With creditworthiness assessment

Backed by real property

3,000,000 –  150,000,000

Backed by a vehicle

5,000,000 – 50,000,000

Without creditworthiness assessment

Backed by real property

3,000,000 –  100,000,000

    4.            

Loan currency

Armenian drams

    5.            

Repayment period

For fixed interest rate:

Backed by real property

24 - 84 months

Backed by a vehicle

60 months

For floating interest rate (backed by real property)     

36 –  180 months

    6.            

Nominal interest rate per annum

With creditworthiness assessment

Backed by real property [1]

14%– 17%

Backed by a vehicle

18%

Without creditworthiness assessment

Backed by real property

15 - 18%

    7.            

Actual interest rate per annum

With creditworthiness assessment

Backed by real property

14.99 – 21.32%

Backed by a vehicle

19.72 – 21.57%

Without creditworthiness assessment

Backed by real property

16.16 – 22.54%

    8.            

Application of annual 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: approved annual interest rate +4%, but no more than 21%

·      The variable component of the floating rate will be revised starting the first due date following the 36-month period after the loan origination and every 6 months afterwards using the interest rate (published on the website) applicable in the Bank at the time of revision.

Procedure for calculation of floating interest rate

    9.            

Loan-to value ratio

With creditworthiness assessment

Backed by real property: up to 80% of the appraised value

Backed by a vehicle: up to 60% of the appraised value

Without creditworthiness assessment

Backed by real property: up to 60% of the appraised value

   10.           

Loan security

·          Real property (except for production premises).

·          Russian vehicles aged 1 to 3,

·          Non-Russian vehicles aged 1 to 7.

·          The Bank may request a surety bond issued by an individual or a legal entity.

   11.           

Insurance

Only for the loans backed by vehicles, each year the borrower will buy insurance policy for the vehicle to cover at least the outstanding loan amount.

   12.           

Loan repayment schedule

·          Annuity (on a monthly basis)

·          Differentiated (on a monthly basis)

·          Flexible ( interest payment for 36 months, at most)

·          Line of credit*  (the limit will be granted at fixed interest rate per annum; the Bank may charge 0.5%-1% for the unused portion.

   13.           

Penalty for  early repayment of the loan amount

No penalty will apply to the loans subject to  regulation by the RA law on Consumer Lending

For loans not subject to  regulation by the RA law on Consumer Lending:

If the loan is aimed at  refinancing the loan with other banks or credit organizations and the principal loan amount is prepaid in full or in part prior to the end of the first half of the contract period, the borrower will pay a penalty of 1% of the prepaid amount.

   14.           

Penalty charged for late payment of the principal and interest amounts

For past due principal amount - 0.015% per day,

For past due interest - 0.1% per day.

   15.           

Loan disbursement method

Non-cash (the loan amount will be transferred to the customer’s bank account)

   16.           

Fees and charges

·          A lump-sum fee for advancing the loan  - at 0.3% of the contractual amount for loans exceeding AMD 15,000,000, but no more than AMD 100,000

·          If the loan amount is withdrawn from the loan account, the Bank will charge a cash withdrawal fee according to the Bank fees.

   17.           

Terms and conditions of refinancing

·          The minimum amount of a refinanced loan will start at AMD 10.000.000

·          Before refinancing, the age of the loan must be at least 12 months.

·          The annual interest rate set under the effective loan agreement will be decreased by up to 3%, but its final rate will not be less than 14%,

·          The costs associated with refinancing will be borne by the Bank. If the borrower repays in full the loan during the first 36 months following the conclusion of the loan agreement whose contractual amount exceeds AMD 15,000,000, the borrower will be obligated to reimburse the Bank’s expenses.

·          The number of days past due must not exceed 10 for the previous 12 months and 20 for the entire period of loan service.

·          The risk category of the refinanced loan should not have fallen outside of the ‘standard’ category for the last 12 months.

·          The borrower should not have other loans classified worse than ‘watch’ category for the last 24 months.

·          The number of days past due on other loans must not exceed 15 for the last 12 month (for a single loan).

·          No lump-sum fee for refinancing will be charged.

·          The borrower and pledger may be different individuals.

·          The rest of the provisions will be regulated under standard procedure.

   18.           

Other terms and conditions

·          If the loan amount exceeds 30% of the collateral value, the FICO score of the borrower or surety should be 510 and above, besides, in the past 12 months the borrower should not have classified credit liabilities and the total number of days past due should not be more than 30.

·          For loan applications without creditworthiness assessment, the borrower must act also as the pledger, otherwise they must run a joint household (live under the same roof).  

·         *The line of credit limit is revolving, with minimum monthly repayments (no grace limit is available). The credit limit will be granted by debit cards of the Bank. By the due date indicated in the account statement, the Cardholder shall repay 5% (minimum AMD 5,000) of the limit used during the previous month and also the accrued interest. A month is considered a period starting at 1st day of each month till the 1st day of the next month. Account statement date – by the 10th day of each month. Payment due date is set to be the 16th of each month (if the 16th day falls on a non-business day, the due date will be automatically extended to the next business day). Linearity of the line of credit is 60 months at most.

   19.           

Timeline for making decision on  loan application

·          The decision on approving or declining the loan application will be made within 10 (Ten) business days upon submission of the entire package of required preliminary documents.

·          The loan will be provided within 2 (two) business days after the approval of the loan application and completion of property pledging procedure.