Credit line with reducible limit

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Credit lines

Credit line with reducible limit

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

Monthly repayments are specified for the use of the credit lines with reducible limits, as a result of which the principal of the credit line is reduced, which reduces your financial liabilities at the end of the validity period of the credit line.

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Provision terms

Loan refinancing and consolidation

Required documents

Additional information

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. Credit lines of up to 2,000,000 AMD inclusive or equal amount in foreign currency, secured with cash flow or guarantee, are provided for the period of up to 36 months
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 - 21-24% in case of AMD cards and, 15-18% in case of USD cards, 14-17% 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

For more information on card provision and service tariffs, credit line grace period by card types, please visit here - Credit card tariffs

Credit line annual interest rate:

Not secured with pledge - based on financial flaw and guarantee – 21-24% in case of AMD cards and, 18-22% in case of foreign currency cards
Secured with pledge – 18-22% in case of AMD cards, 17-18% in case of foreign currency cards

Moreover, in case of consolidation the amount of your loan/credit line being repaid should comprise maximum 20% of the amount of newly disbursed credit line.

Identification document,
Copy of the document, containing the public service number, established by the legislation, or the original of the reference on receiving or not receiving the public service number, issued by the body, holding the state register;
Employer reference and/or document, evidencing the income, which shall at least contain the size of the customer’s monthly salary/income, employer’s name, if possible, also the TIN. If the customer is a private entrepreneur or has a business with relevant certification, a document, evidencing the income can be the tax reports and the statutory documents of the legal entity or private entrepreneur; ^*
Property documents, photos* of the real estate, offered by the customer as a security for the credit line;
Copies of the passports of the guarantors and pledgers^**

*Is not necessary if the credit line funds are less than 500,000 AMD

**to be submitted, if required

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.

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.

Provision terms

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. Credit lines of up to 2,000,000 AMD inclusive or equal amount in foreign currency, secured with cash flow or guarantee, are provided for the period of up to 36 months
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 - 21-24% in case of AMD cards and, 15-18% in case of USD cards, 14-17% 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

For more information on card provision and service tariffs, credit line grace period by card types, please visit here - Credit card tariffs

Loan refinancing and consolidation

Credit line annual interest rate:

Not secured with pledge - based on financial flaw and guarantee – 21-24% in case of AMD cards and, 18-22% in case of foreign currency cards
Secured with pledge – 18-22% in case of AMD cards, 17-18% in case of foreign currency cards

Moreover, in case of consolidation the amount of your loan/credit line being repaid should comprise maximum 20% of the amount of newly disbursed credit line.

Required documents

Identification document,
Copy of the document, containing the public service number, established by the legislation, or the original of the reference on receiving or not receiving the public service number, issued by the body, holding the state register;
Employer reference and/or document, evidencing the income, which shall at least contain the size of the customer’s monthly salary/income, employer’s name, if possible, also the TIN. If the customer is a private entrepreneur or has a business with relevant certification, a document, evidencing the income can be the tax reports and the statutory documents of the legal entity or private entrepreneur; ^*
Property documents, photos* of the real estate, offered by the customer as a security for the credit line;
Copies of the passports of the guarantors and pledgers^**

*Is not necessary if the credit line funds are less than 500,000 AMD

**to be submitted, if required

Additional information

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:

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.

Penalties applicable in case of delinquencies against obligations of borrowers

Confiscation of collateral

Information to be submitted to the Credit Registry

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

In case of any inconsistencies between the published Armenian and English information, the Armenian version prevails.
Updated: 23.06.2017 10:55

82-84 Aram Street, Yerevan, Armenia

Tel: (+374 10) 31 88 88

Fax: (+374 10) 54 34 85

E-mail: acba@acba.am

Financial system mediator