Credit lines with reducible limit are provided to the RA citizen individuals, who have fixed documented income,

• Currency – AMD, USD, Euro
• Validity – up to 60 months, but not more than card validity: for credit lines both with and without collateral.
• Credit line minimum amount – not specified
• Credit line maximum amount – 10,000,000 AMD or equal amount in foreign currency
• Credit line annual interest rate:
  • Not secured with pledge - based on financial flaw and guarantee - 21-22% in case of AMD cards and, 16-19% in case of USD cards, 15-18% in case of EUR cards
  • Secured with pledge – 18-22% in case of AMD cards, 14-17% in case of USD cards, 13-16% in case of EUR cards
    
• Interest amount calculation - daily towards the used credit line
• Credit line security – real estate, vehicle (car), agricultural equipment, other equipment, funds, other material values, if required also guarantees. Credit lines of up to 500,000 AMD inclusive or equal amount in foreign currency may be provided with the security of cash flow or a guarantee of at least one person, and the credit lines in the amount of 500,001-2,000,000 AMD inclusive or equal amount in foreign currency – with the security of cash flow and guarantees of at least two persons
• Sum of the credit line main amount and interest of 12 months shouldn’t exceed 83.33% of the estimated pledge value, if applicable

• Credit line amount is provided non-cash on a payment card.
• The factor for the positive decision and rejection of the provision of a credit line is the assessment of the solvency of the customer.
• The decision on the credit line application is performed within maximum 8 working days upon submission of the application and the package of required documents by the customer.
• The decision, made by the Bank, as a result of the review of the credit line application of the customer, shall be announced to the customer within 1 working day.
• The credit line is provided within maximum 5 working days upon the announcement of the Bank’s decision and end of the pledging process.
• The credit line is formulated in the Bank’s Head office and branches.
• In case of the early repayment of the credit line, no fines shall be collected.

Example of calculation of a credit line:

In case of a 36-month, 21% annual interest rate, 700,000 AMD credit line, which will provided based on the financial flaw and guarantees via American Express Cashback card (card service annual commission fee – 6,000 AMD, cash withdrawal – 1.5%) the actual annual interest rate will comprise 26.92%. The daily interest amount will comprise Credit line used amount × Interest rate ÷ 365 = (700,000×21%÷365) = 402.74 AMD.

• The credit line interest amount is calculated on the basis of nominal interest rate. The credit line annual actual interest rate shows the cost of the credit line for you in case of repayment of the interest amounts and other fees in due terms and size.
• During the validity of the credit line agreement, no change of the nominal interest rate is envisaged by the Bank.
  
  

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Penalties applicable in case of delinquencies against obligations of borrowers

Confiscation of collateral

THE PLEDGED PROPERTY MAY BE CONFISCATED, IF THE BORROWER DOES NOT MAKE DUE REPAYMENTS OF THE INTEREST AMOUNTS AND LOAN PRINCIPAL. IF THE COLLATERAL VALUE IS NOT SUFFICIENT, THE BORROWER’S LIABILITIES SHALL BE REPAID AT THE EXPENSE OF OTHER PROPERTY OF THE BORROWER.

Information to be submitted to the Credit Registry

IN CASE OF FAILURE BY THE BORROWER TO PAY INTEREST ON THE LOAN AND PRINCIPAL THEREOF IN ACCORDANCE WITH THE REPAYMENT SCHEDULE, INFORMATION ABOUT THE BORROWER WILL BE SUBMITTED TO THE CREDIT REGISTRY.

“BAD” CREDIT HISTORY MAY IMPAIR YOUR ABILITY TO OBTAIN LOANS / CREDITS IN THE FUTURE.