• The decision on provision of a credit line is made and the credit line is registered at the moment of application;
• No penalties will be charged for early repayment of the credit line.
• Loan account statement (including copy) and other information during the agreement validity is provided free of charge.

Example of calculation of a credit line

In case of a credit line with VISA Classic card with 60 months validity, 14% annual interest rate, 1,000,000 AMD, the annual interest rate will make 11.19%. The daily interest amount will make Credit Line Used Amount × Interest Rate ÷ 365 = (700,000 × 14% ÷ 365) = 383.5 AMD.

In case of credit lines in foreign currency, the basis for the calculation of the annual actual interest rate is the exchange rate published on the official website of the CBA on the day of provision of the loan; the actual annual interest rate may change depending on the change in the official exchange rate of the Central Bank of Armenia.

ATTENTION: LOAN INTEREST AMOUNTS ARE CALCULATED BASED ON THE NOMINAL INTEREST RATE, AND THE ANNUAL ACTUAL INTEREST RATE SHOWS HOW MUCH THE LOAN WILL COST FOR YOU, IN CASE OF DUE PAYMENT OF INTEREST AMOUNTS, LOAN PRINCIPAL AMOUNT AND ALL MANDATORY FEES FOR PROVISION AND SERVICE OF LOAN. YOU CAN FIND THE CALCULATION OF ACTUAL INTEREST RATE HERE.

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Failure by the borrower to fulfill its liabilities on time is subject to a fine of 0.13% (applied fines) for each overdue day.

The credit line repayment is performed in the following sequence (in case of repaying overdue liabilities):

• Fine/penalty
• Interest amount
• Principal amount.

The credit lines, secured with funds, are provided to the individuals for consumption purposes.

• Credit line is provided in a non-cash form;
• Factors for a positive credit line decision are customer credit rating;
• Factors for rejection of the credit line: insufficient financial performance as a result of the analysis, bad credit history of the customer, insufficiency/lack of required collateral, professional opinion of the Business Advisor, professional opinion of the Credit Committee;
• The credit line is registered in the Bank's branches;
• In case of credit lines, provided in foreign currency, the changes in foreign exchange rates may impact loan repayments;
• During the agreement validity, the statements are provided via email every 30 days, if the customer does not select another option.

YOU HAVE THE RIGHT TO COMMUNICATE WITH YOUR FINANCIAL ORGANIZATION IN YOUR PREFERRED METHOD - BY MAIL OR EMAIL. RECEIPT OF INFORMATION ELECTRONICALY IS THE MOST CONVENIENT. IT IS AVAILABLE 24/7, FREE OF THE RISK OF LOSS OF PAPER INFORMATION AND PROVIDES CONFIDENTIALITY.

The Bank may unilaterally change the contractual interest rate by notifying the Borrower at least 7 calendar days in advance, in case of non-purposeful use of the loan, as well as failure to fulfill the obligations stipulated by the loan agreement.

ATTENTION: APPLYING FOR A CREDIT LINE, THE CREDITOR WILL PROVIDE YOU, YOUR GUARANTORS (if available) WITH AN INDIVIDUAL SHEET OF SIGNIFICANT TERMS OF CREDIT LINE, WHERE THE INDIVIDUAL TERMS OF LOAN, PROVIDED TO YOU, WILL BE PRESENTED.

Confiscation of collateral

THE PLEDGED PROPERTY CAN BE CONFISCATED, IF THE BORROWER DOES NOT DULY REPAY THE INTEREST AMOUNTS AND LOAN AMOUNT. IF THE COLLATERAL VALUE IS INSUFFICIENT, THE BORROWER’S LIABILITIES WILL BE REPAID AT THE EXPENSE OF OTHER PROPERTY OF THE BORROWER.

Information, provided to the Credit Registry

ATTENTION: IN CASE OF FAILURE TO FULFIL THE LIABILITIES OR IMPROPER PERFORMANCE OF LIABILITIES, THE CREDITOR SHALL SEND THESE DATA TO THE CREDIT BUREAU UPON 3 WORKING DAYS, WHERE YOUR CREDIT HISTORY IS REGISTERED. YOU HAVE THE RIGHT TO RECEIVE YOUR CREDIT HISTORY FROM THE CREDIT BUREAU FREE OF CHARGE ONCE IN A YEAR.

ATTENTION: BAD CREDIT HISTORY CAN BE AN OBSTACLE FOR YOU TO RECEIVE A LOAN IN THE FUTURE.

FOR GUARANTORS

Please be informed that:

• If the borrower fails to perform their liabilities, you will pay for it instead, your credit history will be impaired, and your property will be confiscated.
• You will be provided with the copies of the loan agreement, guarantee agreement and repayment schedule.
• The communication will be performed in the way, preferred by you.
• You will be notified 7 days in advance of a change in the terms of the contract.
• A reminder of the current liability will be sent to you 1 day in advance.
• In case of delay of loan repayment, you will be notified at the latest one day later.

THE GUARANTOR HAS THE RIGHT TO:

• Request from the creditor the information on the loan balance at any time.
• Receive the money, paid by you for the loan, from the borrower, as well as other losses incurred by you instead of the borrower.

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ATTENTION: "YOUR FINANCIAL DIRECTORY" IS THE ELECTRONIC SYSTEM FOR SEARCH, COMPARISON OF SERVICES, OFFERED TO INDIVIDUALS, AND MAKING THE SELECTION OF THE MOST EFFICIENT OPTIONS FOR YOU EASIER.