Loan purpose
Personal
Loan type
Consumer
Loan currency
AMD
Loan amount
Minimum amount of the loan – AMD 3.000.000 The maximum amount is conditioned by:
Customer's creditworthiness
Security of the collateral offered by the customer
Loan risk assessment
The requirements of the normative framework provided by the Central Bank of Armenia and by international agreements In case of absence of the document verifying Borrower’s income the maximum amount is AMD 15.000.000
Customer's creditworthiness
Security of the collateral offered by the customer
Loan risk assessment
The requirements of the normative framework provided by the Central Bank of Armenia and by international agreements In case of absence of the document verifying Borrower’s income the maximum amount is AMD 15.000.000
Annual interest rate
In case of availability of the documents verifying the Borrower’s income:
* Loan annual interest rate depends on customers’ classification internal criteria set forth by the Bank's internal regulations.
- Effective interest rate 14.98-19.34%
In case of absence of the document verifying the Borrower’s income
- Effective interest rate 17.29-20.83%
| Redemptiuon period | Interest rate | Annual interest rate in case of receiving the borrower’s salary with Bank’s payment plastic cards | Loan to pledge max. value ratio |
| 912-1095 օր | 14-14.75% | 14-14.5% | In case of a real estate located in RA cities- 70% In case of a real estate located in rural areas of RA– 50% |
| 1096-1825 օր | 15-15.75% | 14-15.5% | |
| 1826-2555 օր | 16-16.75% | 15-16.5% | |
| 2556-3650 օր | 17-17.75% | 16-17.5% |
In case of absence of the document verifying the Borrower’s income
| Redemption period | Interest rate | Loan to pledge maximum value ratio |
| 912-1095 days | 16% | 40% |
| 1096-1825 days | 17% | |
| 1826-2555 days | 18% | |
| 2556-3650 days | 19% |
Loan term
• 30-120 months in case of documents certifying income
• In case of absence of documents certifying income -30-120 months
• In case of real estates located in rural areas of RA – 30-60 months
• In case of absence of documents certifying income -30-120 months
• In case of real estates located in rural areas of RA – 30-60 months
Way of provision
Cashless
Redemption frequency
Monthly, Monthly- equally (annuitant), or Non-equally (differential)
Security
Real estate
In the absence of documents confirming income, provide loans with the guaranty of at least 1 person, and the individual who provided the guarantee within the framework of this type of loan must bear joint liability before the Bank, otherwise, if the individual guaranteeing bears subsidiary liability, then the latter must assume joint responsibility as Co-borrower (no guarantor (co-borrower) is required if the loan/collateral ratio is at most 30%).
In the absence of documents confirming income, provide loans with the guaranty of at least 1 person, and the individual who provided the guarantee within the framework of this type of loan must bear joint liability before the Bank, otherwise, if the individual guaranteeing bears subsidiary liability, then the latter must assume joint responsibility as Co-borrower (no guarantor (co-borrower) is required if the loan/collateral ratio is at most 30%).
Loan to pledge value ratio
Maximum 70% of liquidation value of the real estate collateral in case of documents certifying income (In case of a real estate located in rural areas of RA- 50%)
In the absence of documents confirming income, in the amount of a maximum of 40% of the estimated liquidation value of the collateral, without the mandatory requirement of the guarantor (co-borrower) in the amount of 30%, but not 15,000,000 AMD more.
In the absence of documents confirming income, in the amount of a maximum of 40% of the estimated liquidation value of the collateral, without the mandatory requirement of the guarantor (co-borrower) in the amount of 30%, but not 15,000,000 AMD more.
Commission fee
Loan application study fee – AMD 5000, which is subject to proportional reduction only in case of loan provision and early repayment.
On the day of granting the loan, charge the borrower a commission fee in the amount of 1%** of the loan amount.
** If at least 70% of the loan amount will be directed towards the repayment of loan liabilities provided to the borrower/co-borrower/guarantor by other financial and banking institutions, the mentioned commission fee is defined at 0.5% of the loan amount.
If a part of the loan/credit line is directed to the repayment of the loan secured by the real estate in ARMECONOMBANK OJSC, charge a commission fee in the amount of 1% of the difference between the loan granted and the loan to be repaid.
On the day of granting the loan, charge the borrower a commission fee in the amount of 1%** of the loan amount.
** If at least 70% of the loan amount will be directed towards the repayment of loan liabilities provided to the borrower/co-borrower/guarantor by other financial and banking institutions, the mentioned commission fee is defined at 0.5% of the loan amount.
If a part of the loan/credit line is directed to the repayment of the loan secured by the real estate in ARMECONOMBANK OJSC, charge a commission fee in the amount of 1% of the difference between the loan granted and the loan to be repaid.
Withdrawal fee
In case of encashment of the loan, a withdrawal fee is charged per the tariffs acting at the Bank*
Real estate appraisal
Upon the tariff set by any assessment organization having a license designated by RA legislation and cooperating with the Bank at the tariffs defined by the assessment organization - AMD 20.000. Depending on the collateral type the tariffs may be higher.
In case of early repayment of the loan it is not subject to reduction.
Collateral arrangement expenses
The borrower shall bear all the expenses related to the collateral arrangement (notarization, registration of the real estate in subdivisions of Real Estate Cadastre)
Notary fee - AMD 16.000
Joint reference (on restrictions against real estate) - AMD 10.000
Certificate on the registration of right to real estate- AMD 27.000
In case of early repayment of the loan it is not subject to reduction.
Notary fee - AMD 16.000
Joint reference (on restrictions against real estate) - AMD 10.000
Certificate on the registration of right to real estate- AMD 27.000
In case of early repayment of the loan it is not subject to reduction.
Loan arrangement is realized
ARMECONOMBANK” OJSC head office and branches, except for Nairi MC, Rossia-1 and Araratyan branches.
Decision period
Up to 10 working days (In case of mortgage the loan is provided within 2 business days following the receipt of collateral registration right)
Penalties
Against the 000000000 amounts (loan, interests, other payments) not paid within the term/s/ set forth by the agreement, a penalty in the amount of 0.13% (daily) of the outstanding amount is charged for each overdue day.
Statement provision
Free of charge
To provide consumer loans and credit lines secured by immovable property located in rural areas of RA with a maximum repayment period of maximum 1,825 days.
ATTENTION. In case of real estate loan exceeding AMD 15.000.000, if a preterm repayment is made in the amount exceeding 20% of the Principle balance as of the first day of each month (which does not include repayment of the part of the loan envisaged by the repayment schedule of the given month) without the Bank's written consent, a penalty in the amount of 5% of the given amount exceeding 20% of the balance of the Principle is applied.
ATTENTION.As an additional means of loan security, the Bank may also require the guaranty of one or more persons.
ATTENTION.Due to various circumstances, additional documents and information may be required.
ATTENTION.In case when the documentation for income source is not required, the applicant and the guarantors must have positive loan history for 365 days preceding the date of acceptance of the application and delays sum for each person should not exceed 30 calendar days.
ATTENTION.The interests are calculated on the loan balance.
ATTENTION.The consumer / borrower / is entitled to unilaterally terminate the credit agreement without any argumentation within 7 business days after its conclusion, unless a longer term is envisaged by the credit agreement (time to think). In this case, the consumer is obliged to pay interest to the creditor for the use of the credit amount, which is calculated in accordance with the actual annual interest rate provided by the credit agreement. No other compensation may be claimed from the consumer in connection with termination of the credit agreement..
ATTENTION.When applying for receiving a loan, the Bank provides you with an individual leaflet on essential terms of consumer loan, which defines individual terms of the loan to be granted to you.
ATTENTION.“Your Financial Informant” is an electronic system which searches and compares the services offered to individuals and facilitates the selection of the most effective option for You. https://www.fininfo.am.
ATTENTION.To get acquainted with the tariffs of the services rendered within the implementation of loan operations please visit the link.
To get acquainted with the terms, conditions and tariffs of the provision of statements, their copies, references and other information during the validity period of the agreement, please visit here.
ATTENTION. On the purpose of due diligence of the customer envisaged by RA law on “On combating money laundering and terrorism financing”, the Bank may request additional documents or other information from the consumer based on <<Know your customer>> principle, as well as ask the consumer additional questions during oral communication.
ATTENTION. In compliance with the agreement signed with USA, to find out whether you are a US tax payer, the bank may collect additional information about the agreements, contracts, cooperation, membership signed by financial institutions, which may have a direct impact on the consumers (e.g. Foreign Account Tax Compliance Act (FATCA)).
ATTENTION. In case of real estate loan exceeding AMD 15.000.000 if a preterm repayment is made in the amount exceeding 20% of the Principle balance as of the first day of each month (which does not include repayment of the part of the loan envisaged by the repayment schedule of the given month) without the Bank's written consent, a penalty in the amount of 5% of the early repaid amount exceeding 20% in the amount of that amount.
ATTENTION. When applying for a loan, the Bank provides you with an individual leaflet on essential terms of consumer loan, which defines individual terms of the loan to be provided to you.
ATTENTION. As an additional means of loan security, the Bank may also require the guarantees of other person/persons.
ATTENTION. In case of non-fulfillment or improper fulfillment of your obligations the lender sends your data to the credit bureau where your credit history is being formed up to 3 business days. You are entitled with the right to get your credit history from the credit bureau free of charge once a year https://acra.am/?lay ).
ATTENTION. Bad credit history may prevent you from receiving other loans in the future
ATTENTION. Loan interests are calculated based on the nominal interest rate and the actual interest rate shows how much the loan will cost in case of fulfillment of loan obligations in defined terms and sizes. The actual annual interest rate calculation procedure can be found on the following link.
The payments to be paid by the consumer are not included in the calculation of the actual interest rate irrespective of the fact that payments against the works and services have been made with or without a credit.
ATTENTION. The nominal interest rate may be changed by the bank. The information on the changes of the nominal interest rate may be found on link.
1.You are eligible to communicate with financial institution by the means of communication you prefer – through postal services or electronically. The receipt of information electronically is the most convenient. It is available round-the-clock (24/7), is free of the risk of loss of paper information and ensures the confidentiality.
2. The possible negative consequences, penalties/fines for the customer in case of non-fulfillment of obligations
• 0, 13%a of the unpaid amount for each overdue day
• 0, 13%a of the unpaid interest amount for each overdue day
3. If you have outstanding liabilities against the creditor, while fulfilling your obligation the loan repayment arrangements are made in the following sequence:
• Court costs (if any)
• Collateral sale costs (if any)
• Accrued penalty
• Accrued interest
• Insurance costs /if any/
• Principal amount of the loan
4. Property (house, car, etc.) pledged by you may be confiscated by law in case you fail to perform your loan obligations on time.
5. In case of non- fulfillment of loan liabilities, the loan liabilities are covered by the collateral, and should the collateral be not enough to repay the borrower’s liabilities it is possible to repay the liabilities on the account of another property of the borrower and/or guarantor(s)/co-borrower/s/.
6. Loan interests are calculated towards the loan balance.
For example if the customer is provided with a loan in the amount of AMD 1.200.000 with an annual interests rate of 24% ,with 12 months period (while calculating monthly accrued interests as a number of days 30 days period has been taken as a basis).
| Months | Loan balance | Repayment from loan | Repayment from interest |
| 1 | 1.200.000 | 100.000 | 23.671 |
| 2 | 1.100.000 | 100.000 | 21.699 |
| 3 | 1.000.000 | 100.000 | 19.726 |
| 4 | 900.000 | 100.000 | 17.753 |
| 5 | 800.000 | 100.000 | 15.781 |
| 6 | 700.000 | 100.000 | 13.808 |
| 7 | 600.000 | 100.000 | 11.836 |
| 8 | 500.000 | 100.000 | 9.863 |
| 9 | 400.000 | 100.000 | 7.890 |
| 10 | 300.000 | 100.000 | 5.918 |
| 11 | 200.000 | 100.000 | 3.945 |
| 12 | 100.000 | 100.000 | 1.973 |
7. WE SHOULD REMIND THAT THE EXCHANGE RATE FLUCTUATIONS MAY HAVE AN IMPACT ON THE REPAYMENTS OF LOAN PROVIDED IN FOREIGN CURRENCY.
8. The Bank applies no limits to loan amount; it will be conditioned by and related to:
• Purpose of loan
• Customer's creditworthiness
• Collateral offered by the customer
• Loan risk assessment
• Requirements of prudential standards provided by the Central Bank of Armenia
9. “ARMECONOMBANK” OJSC can provide services to the customer under terms which may differ from those set forth in the Bank's overall policy taking into account any of the following conditions of the below-mentioned list:
• Customer account balance
• Customer account turnover
• Strategic importance of the customer for the Bank
• Number of employees in customer organization
• Total number of cards issued for customer organization
• Income gained from customer
• Volume of transfers
• Size of deposits with the Bank
• Significant borrower
• Social considerations (medical organizations, educational institutions, etc.)
• Being the head of such organization
• Other objective conditions
10. The borrower pays interest to the bank for using the loan amount, the interest of which is calculated on the loan balance for the calendar days of actual use of the loan based on a 365-day year. For loans under specific projects the interest calculation may be based on a 360-day year.
• Loans are repaid within the dates indicated in the loan agreement.
• The periodicity of interest payments is determined in accordance with the loan agreement or repayment schedule.
• If the repayment date for principal or interest rates falls on day off, the payment is made on the following working day without calculation of penalty for the days off.
11. Repayment of Loans
• Loans are repaid within the dates indicated in Loan Agreement
• Loans are repaid in the currency in which they were given • In case of loans in foreign currency, exchange rate fluctuations may affect loan payments
• In case of exchange rate fluctuations, the exchange rate risk related to loans will be borne by the borrower
12. The Bank may terminate the Loan Agreement and request repayment of the loan amount, if
• The borrower has failed to make any payment required under Loan Agreement
• The borrower has breached any confirmation made by the him/her and fails to correct such breach within 30 days following the occurrence thereof
• Any presentation, warranty, document, or information provided by the borrower is materially incomplete
• By reasonable opinion of the Bank, an essential negative change has occurred in financial state of the borrower, including court orders, outflow of assets, deterioration or termination of business, company re-organization.
• The borrower undergoes dissolution, or is subject to ongoing or pending bankruptcy proceedings
• The borrower interferes with monitoring
• In case of other objective reasons
13. The Bank may accept as collateral:
• Real estate: land, houses, buildings, apartments
• Fixed assets
• Circulating assets
• Motor vehicles
• Precious metals
• Treasury bills, foreign currency, stocks
• Property to be purchased and ownership right
• Cash
14. The appraisal value of movable and immovable real estate is based on the market value indicated in appraisal statement.
15. The loan or a part thereof, as well as the accrued interest is deemed overdue if not repaid within periods specified in the Agreement.
• In case of non-repayment of the amounts (the loan, interests other payments) within the term(s) set by the Agreement, Borrower shall pay a penalty in the amount of 0.13% (zero point thirteen percent) of the overdue amount for each day of default. The total amount of the unpaid interests calculated in accordance with this paragraph shall not exceed the current debt balance.
• In case of non-repayment of the loan or a part thereof within the term(s) set by the Agreement, the Borrower is obliged to pay interests to the Bank in the amount of double of the settlement rates set by the Central Bank of Armenia. The total amount of the unpaid interests calculated in accordance with this paragraph shall not exceed the current debt balance.
• Starting from the 91st day of overdue days, 21,5% annual interest rate is applied to the balance of non-overdue loan (term loan). After the full repayment of outstanding amounts, penalties and interests accrued, the interest rate set by the Loan Agreement is recovered.
16. The Bank shall not accept the following items as collateral:
• Non-circulating assets
• Separate parts of indivisible property
• Leasing right
• Property owned by urban, rural, and local communities
• Property with ownership right
17.To satisfy the claim of CREDITOR-PLEDGEE, the pledged property may be confiscated in extrajudicial manner pursuant to paragraphs 2-4 of these Rules in case of non-fulfillment or improper fulfillment of the obligations by PLEDGER under Collateral Agreement and by BORROWER under Loan Agreement.
2. The property confiscated in extrajudicial manner may be sold if under the Pledge Agreement PLEDGER has authorized CREDITOR-PLEDGEE to sell the pledged property upon emergence of the grounds for confiscation as stipulated in paragraph 1 of these Rules without seeking court intervention and so fully recover the claim covered by the collateral and has also agreed to transfer without seeking court intervention the ownership of the pledged property against the respective part of main liability to CREDITOR-PLEDGEE or any person designated by the latter in the manner provided by RA legislation.
3.Upon emergence of the grounds for confiscation as stipulated in paragraph 1 of these Rules, CREDITOR-PLEDGEE shall duly notify PLEDGER in writing of confiscation of the pledged property (confiscation notice). In two months following the date of delivery of confiscation notice to PLEDGER, CREDITOR-PLEDGEE shall have the right, pursuant to Article 195 of RA Civil Code, to sell the pledged property directly or through public auction pursuant to RA Law on Public Bidding.
4. PLEDGER undertakes to transfer the pledged property to CREDITOR-PLEDGEE within two months following the date of delivery of confiscation notice to PLEDGER.
5. The duration of process of sale of pledged property may not become a ground for cessation of growth of BORROWER's liabilities to CREDITOR-PLEDGEE. Moreover, the proceeds from sale of collateral shall be utilized to fully cover CREDITOR-PLEDGEE's claims to BORROWER existing as of the date of sale of collateral and, should the claim not be covered on the account of the collateral, the outstanding amounts may be confiscated from other property of BORROWER.
6. Confiscation of the property pledged to cover CREDITOR-PLEDGEE's claims by court order may be executed in the manner provided by RA legislation.
18. You can get acquainted with the tariffs on any service by visiting the following link:https://www.aeb.am/en/sakagner/.
19. You can get acquainted with the terms and conditions of remote banking services by visiting the following link: https://www.aeb.am/en/sakagner/.
20. Loan history and Score grading
The essence of credit history
Credit history is a set of information on quality of fulfillment of current and closed financial liabilities of the customer, which is collected in the Credit Bureau based on the information provided by credit organizations.The information collected is systemized by the Credit Bureau and as needed (Application of a new loan, monitoring of acting loan and etc) is provided to financial institution having the appropriate authority making the request. The client's credit history is essential for the lending organization in order to assess the creditworthiness of the given client and to make a decision to grant or reject a loan.
To change an incorrect or incomplete credit history, the client can apply to the ACRA Credit Bureau by submitting a written application manually or electronically, find out what information is stored about him/her and what is the source of the incorrect or incomplete information.
To submit an application to ACRA Credit Bureau, please visit the following link: https://acra.am/?lang=hy
Please follow the link below for the importance and significance of credit history: https://www.abcfinance.am/lifesituations/credit-history.html
The nature of credit SCORE scoring
When granting certain types of loans, the financial organization uses a scoring system for assessing the creditworthiness of the client. The SCORE grade of the Applicant is mainly formed from various criteria of the credit history, based on which the applicant's creditworthiness is assessed using a scoring system. The score allows the financial organization to model and predict the possible behavior of the applicant during the period of the new loan, taking into account the eagerness of the applicant to repay previous and current obligations, the frequency of taking on new obligations and other criteria.
ARMECONOMBANK OJSC company uses the scoring system of evaluation developed and implemented by the Bank.
The factors affecting the SCORE grade are: credit burden, availablity of recorded income, previously overdue liabilities and etc. Each equest of credit history may have a negative impact on SCORE grade of the particular applicant and reduce it.
The customer's credit history and score can be improved by taking the following steps:
• fully repay existing overdue loan obligations and exclude even one day delays in performance of obligations on current loans;
• avoid becoming a guarantor for loans of untrustworthy persons in the future;
• have recorded income.
Please follow the link below for the importance and significance of credit history: https://www.abcfinance.am/lifesituations/credit-history.html
20. Loan history and Score grading
The essence of credit history
Credit history is a set of information on quality of fulfillment of current and closed financial liabilities of the customer, which is collected in the Credit Bureau based on the information provided by credit organizations.The information collected is systemized by the Credit Bureau and as needed (Application of a new loan, monitoring of acting loan and etc) is provided to financial institution having the appropriate authority making the request. The client's credit history is essential for the lending organization in order to assess the creditworthiness of the given client and to make a decision to grant or reject a loan.
To change an incorrect or incomplete credit history, the client can apply to the ACRA Credit Bureau by submitting a written application manually or electronically, find out what information is stored about him/her and what is the source of the incorrect or incomplete information.
To submit an application to ACRA Credit Bureau, please visit the following link: https://acra.am/?lang=hy
Please follow the link below for the importance and significance of credit history: https://www.abcfinance.am/lifesituations/credit-history.html
The nature of credit SCORE scoring
When granting certain types of loans, the financial organization uses a scoring system for assessing the creditworthiness of the client. The SCORE grade of the Applicant is mainly formed from various criteria of the credit history, based on which the applicant's creditworthiness is assessed using a scoring system. The score allows the financial organization to model and predict the possible behavior of the applicant during the period of the new loan, taking into account the eagerness of the applicant to repay previous and current obligations, the frequency of taking on new obligations and other criteria.
ARMECONOMBANK OJSC company uses the scoring system of evaluation developed and implemented by the Bank.
The factors affecting the SCORE grade are: credit burden, availablity of recorded income, previously overdue liabilities and etc. Each equest of credit history may have a negative impact on SCORE grade of the particular applicant and reduce it.
The customer's credit history and score can be improved by taking the following steps:
• fully repay existing overdue loan obligations and exclude even one day delays in performance of obligations on current loans;
• avoid becoming a guarantor for loans of untrustworthy persons in the future;
• have recorded income.
Please follow the link below for the importance and significance of credit history: https://www.abcfinance.am/lifesituations/credit-history.html
