Information for the Guarantor
If the Borrower fails to meet his/her loan obligations in a proper manner, the guarantor will take on responsibility of the debt and will have to repay the outstanding loan.
The guarantor is entitled to receive reimbursement from the borrower for the repaid debt, i.e. the guarantor may request the borrower to reimburse the amount paid to the lender, the interest and other expenses incurred as a result of taking responsibility instead of the borrower.
The lender must warn the guarantor in advance about pending loan repayment, i.e., if the borrower fails to meet his/her obligations in due manner, the guarantor is required to repay the outstanding debt within the period defined in the guarantee agreement after getting the respective notice from the lender.
The guarantor’s name may appear in the BAD BORROWER LIST, i.e., if the borrower doesn’t repay his/her obligations, the guarantor’s name may be reported to the Credit Bureau, where the credit history is originated. This may affect the guarantor’s future loan applications.
Statements
We will provide you the statements of your credit accounts through communication channels and at frequency agreed between you and us and/or in accordance with the Armenian laws and regulations. The statements are provided by post, email, Internet-Bank or in person at any branch of the Bank.
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Provision of statements, information and copies of documents
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Service
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Provision of account statements, copies of account statements or other documents kept in electronic form, backdated up to 1 year
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Free
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Provision of account statements or copies of account statements backdated more than 1 year or other documents kept in electronic form7
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AMD 5,000 per annual statement per account, VAT included
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Provision of copies of documents kept in paper or backdated more than 1 year and kept in electronic form
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AMD 5,000 per document, VAT included
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Provision of references
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To holders of 3+ months old accounts6
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AMD 3,000, VAT included
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To holders of less than 3 months old accounts
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AMD 5,000, VAT included6
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Attention!
THE LOAN INTEREST RATE MAY NOT EXCEED THE DOUBLE OF THE BANK RATE DECLARED BY THE CENTRAL BANK OF ARMENIA.
Attention!
THE PLEDGED PROPERTY MAY BE FORECLOSED IF THE BORROWER FAILS TO REPAY LOAN AMOUNT AND INTEREST IN TIME. IF THE VALUE OF THE COLLATERAL IS INSUFFICIENT, OTHER PROPERTY OF THE BORROWER WILL BE ENFORCED TO REPAY THE BORROWER’S OBLIGATIONS.
Attention!
IF YOU FAIL TO PERFORM YOUR OBLIGATIONS IN A PROPER MANNER, THE LENDER WILL REPORT INFORMATION ABOUT YOUR OVERDUE OBLIGATIONS WITHIN 1-3 BUSINESS DAYS TO THE CREDIT BUREAU WHERE YOUR CREDIT HISTORY IS GENERATED. YOU ARE ENTITLED TO OBTAIN YOUR CREDIT HISTORY FROM THE CREDIT BUREAU ONCE A YEAR, AT NO COST. ATTENTION. BAD CREDIT HISTORY MAY AFFECT YOUR FUTURE ATTEMPTS TO GET A LOAN.
When you repay your overdue debt, the payment will be made in the following order:
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Fines and penalties
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Interest
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Principal
Attention!
Consumers are allowed to cancel the credit agreement at their own discretion, for no particular reason, within 7 business days following its execution unless a shorter period is stipulated therein (cooling-off period). In such cases, consumers are required to pay the interest accrued at the annual percentage rate under the credit agreement. The consumer will not be required to pay any other reimbursement in relation to the cancellation of the credit agreement.
Attention!
LOAN INTEREST IS CALCULATED AT THE NOMINAL INTEREST RATE. THE LATTER SHOWS THE ANNUAL INTEREST ON THE LOAN CALCULATED AS A PERCENTAGE OF THE OUTSTANDING LOAN BALANCE. THE LOAN INTEREST IS ACCRUED TO THE OUTSTANDING LOAN PRINCIPAL IN THE LOAN CURRENCY DAILY, BASED ON A 365-DAY CALENDAR YEAR.
THE ANNUAL PERCENTAGE RATE SHOWS THE COST OF THE LOAN IN CASE OF DUE AND TIMELY REPAYMENTS UNDER THE AGREEMENT.
Attention!
The amount of interest is calculated based on the annual nominal rate and manner of the loan repayment.
The loan may be repaid in the following manner:
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In case of differentiated repayment (equal portions of principal each month) the client repays equal portions of loan principal, but the amount of interest is different each month. This being the case, the amount of total monthly payment decreases each month.
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Annuity (equal payments). In this case the client makes equal payments (consisting of portion of the loan principal and some interest) each month throughout the loan term.
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Mixed. The client has an opportunity to select individual repayment plan matching his/her preferences, based on the seasonality of the client’s financial flows, provided that the principal amount being repaid each year is equal to at least 5% of the contractual loan amount in case of loans for purchase, renovation and construction of residential and commercial real estate, as well as investment loans.
If you choose the 2nd method to repay the loan, the total amount of payable interest will be higher than in the 1st case.
The 2nd method, however, allows you planning your expenses, because you know the exact amount you’re going to pay each month, and the amounts payable during the first months are overall smaller.
More detailed information on the interest calculation procedure is presented here.
Attention!
IF YOU FAIL TO PERFORM YOUR PAYMENT OBLIGATIONS WHEN DUE OR DO NOT PERFORM THEM PROPERLY, OVERDUE AMOUNTS SHALL BEAR FINES AND PENALTIES AS DEFINED BY AGREEMENT, AND THE INFORMATION ABOUT YOUR OVERDUE LIABILITIES WILL BE REPORTED TO CREDIT REGISTRY WITHIN 3 BUSINESS DAYS.
YOUR BAD CREDIT HISTORY MAY AFFECT YOUR FUTURE LOAN APPLICATIONS.
Change of interest rates
The Bank is entitled to change the interest rates depending on the volatility of the interest rates on the funds borrowed and/or allocated by the Bank in the financial market, and/or occurrence of preconditions for the change of annual interest rate applied to the loan. The Bank shall inform the borrower of any change in the nominal interest rate made at the sole discretion of the Bank in advance, within the term specified in the agreement (at least 7 days in advance), via the channels specified in the agreement, which shall serve as a basis for applying the new terms from the date specified in the notice. If not consenting to the new interest rate, the borrower may terminate the respective agreement before the maturity date, repaying the liabilities to the Bank under such agreement in full.
What may help you to get your loan approved
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Long-standing relationship between the Bank and the client
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Business reputation
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Other
Why your loan might be rejected
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The information (documents and other data) provided by the borrower is not trustworthy or complete.
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The borrower's declared income is not sufficient to cover the liabilities.
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The borrower has bad credit history, delinquent and/or classified liabilities (including to third parties).
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Other
Loan decision
The Bank reviews the loan application and makes a preliminary decision within 2 business days. If approved, the final loan decision is made within no more than 8 (eight) business days upon receipt of the complete set of documents. The Bank's decision is communicated to the client within 1 (one) business day. The loan is issued to the borrower only after execution of security agreements specified in the agreement.
The loan will be disbursed to the borrower if the following conditions precedent have been met:
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security agreements have been signed in accordance with the Armenian laws and regulations, such agreements prepared in form and substance satisfactory to the Bank,
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the collateral has been insured (upon the Bank’s request) by an insurance company cooperating with the Bank,
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the borrower has fulfilled other conditions of loan issuance.
Once the Bank makes a loan decision, if the client:
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Confirms his/her intention to receive the loan within 45 (forty-five) calendar days upon getting loan approval notice, the loan processing and issuance process starts.
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Confirms his/her intention to receive the loan after 45 (forty-five) calendar days upon getting loan approval notice, the loan decision is subject to re-approval.