Loans secured by financial assets

Loans/credit lines secured by financial assets and/or rights of claim on financial assets


You can get this comfortable type of loan secured by financial assets, including facilities deposited on bank account. Interest can be paid either on annuity or discount basis or on favorable terms



  • Interest rate
    Starting from 10 %
  • Maturity
    ap to 24 months 
  • Minimum amount
    Not specified
  • Maximum amount
    Up to 95% of the amount of your financial assets


The page was updated 21.11.2017 17:05

Loans secured by financial assets 

Loans/credit lines secured by financial assets and/or rights of claim on financial assets 
 
 

General terms and conditions

1.1

Currency

The currency of the pledged financial assets

1.2

Annual interest rate

For loans secured by facilities put as a deposit -

Interest rate applied on the deposit + 4 percentage points, but no less than 10%    

For loans secured with financial assets put on bank accounts – interest rate applied on demand deposits

+ 4 percentage points, but no less than 10%

For “Convertible” deposits the annual nominal interest rate of the loan will be calculated – the interest rate on “Convertible” deposit applicable as of the given moment for Armenian drams + 4 percentage points

1.3

Repayment

Annuity – equal payments

Discount – payment of interest at the beginning and the principal amount at the maturity

Favorable – payment of interest per month and the principal amount at the maturity     

1.4

Minimum limit

Annuity– 95% of the amount of pledged funds

Discount - 95% of the amount of pledged funds

Favorable – 90 % of the amount of pledged funds

For “Convertible” type of deposit - 60% of the amount of pledged funds

1.5

Maximum maturity

24 months

1.6

Method of disbursement

Cash or non-cash method, on the operating account or by payment card

(foreign currency denominated loans are disbursed by payment cards only)

1.7

Security

Financial assets and/or rights of claim on financial assets deposited by the client or other person (individual, legal entity or Private entrepreneur)

1.8

Extension of maturity

The term of the loan may be extended on the basis of the request of the client, submitted at least one business day prior to the maturity date of the loan, according to the general terms of the given type of deposit applicable as of the date of extension of the term of the loan, provided that the borrower:

1) Doesn’t have any overdue obligations on loan liabilities at the Bank

As of the date of the extension of the loan the loan category is “standard”


Requirements to the borrower

2.1

Status

Individual

2.2

Eligible age

Eligible age of the borrower as of the date of accepting the loan application should not be less than 18 years

2.3

Requirements to the credit history (good credit history)

 

No existing overdue/ classified obligations as of the date of submitting application


Foreign currency denominated loans are extended by payment cards only.  


Fees

3.1

Upfront fee

According to the applicable rates of the Bank



Fines and penalties

4.1

Late payment fee (day)

0.1%

4.2

Late interest payment fee (day)

0.1%

4.3

Early repayment fee

Not specified

4.4

Why the Bank can require early repayment 

The Bank has the right to require early repayment of the loan if:

a) information presented for the loan is false or untrustworthy

b) the Client fails to perform obligations under the agreement

c) special reserve on the loan has been constituted due to overdue financial liabilities


Payment card rates

5.1

Type of the card

Any type of payment card issued by the Bank, as requested by the client

5.2

Rates of payment card

• For Visa Electron/Maestro Cirrus payment cards – no annual service fee is charged, other rates are according to the applicable rates of the Bank,

• For other payment cards  (other than Visa Electron/Maestro Cirrus) - according to the applicable rates of the Bank


Other terms and conditions

6.1

Why the  loan may be rejected 

а) Provision of false or untrustworthy information;

b) Incompliance with the requirements of the Bank;

6.2

Maximum term of taking decision

1) For loans up to 100 million AMD or equal foreign currency - on the day of submitting the loan application,

2) For loans above 100 million AMD or equal foreign currency – the day following the day of submitting loan application

6.3

Giving notice on extending the loan

On the day of submitting the loan application

6.4

Term of loan disbursement

On the day of submitting loan application;, 3 business days for loans disbursed by payment cards

6.5

Maximum availability period

10 business days

6.6

Place of accepting the loan application and execution of the loan

All branches where the financial assets are deposited


Calculation of actual annual interest rate for the loan secured by financial assets

Loan amount - 10 000 000 ՀՀ դրամ
Annual interest rate - 10%
Maturity - 24 months 
• Effective interest rate - 10.44% 

How to calculate interests 

Interest amount is applied to the reduced balance with the account of 365 days a year. 


ATTENTION: THE INTEREST ACCRUED TO THE CREDIT AMOUNT IS CALCULATED ON THE BASIS OF NOMINAL INTEREST RATE. THE ACTUAL ANNUAL PERCENTAGE RATE SHOWS THE COST OF THE LOAN IF YOU PAY THE INTEREST AND OTHER DUE PAYMENTS WITHIN THE DEFINED TERMS AND AMOUNTS.  

Early repayment 

No penalty is applied for early repayment. 

Exchange rate effect 

Taking into account the fact that the Bank provides loans in both Armenian drams and foreign currency, the borrower should understand that foreign currency fluctuations can have either positive or negative impact on the loan repayment. 

Loan request rejection 

The Bank may reject loan applications of those clients, which fail to meet the program requirements or where the Bank is not sure of the solvency of clients; the Bank can provide written notice on rejection upon request of the client.   The Bank is liable to provide such information on rejecting the loan to other banks of RA and credit organizations (according to the RA Law on banking secrecy). 

ATTENTION: IN CASE OF FAILURE TO REPAY THE LOAN INTEREST AND/OR PRINCIPAL WHEN DUE YOUR ASSETS CAN BE SEIZED. THE INFORMATION ABOUT YOUR OVERDUE LIABILITIES SHALL BE RECORDED IN THE CREDIT REGISTER. 
If the funds received as a result of disposal of pledged property are not enough to cover the borrower's liabilities under the loan, such liabilities shall be paid on the account of other equivalent assets of the borrower.

The page was updated 23.01.2018 14:41
The following documents should be submitted to the Bank to get the loan secured by the financial assets:

  • ID document    

  • Public service number /reference on non-receiving the PSN

The page was updated 21.11.2017 17:26
Attention: The Bank does not bear any responsibility for the inaccuracy of information on the linked web sites, nor does it accept any responsibility for the advertisements therein or possible consequences arising out of use of information provided on the linked web-sites. In case of any discrepancies in the website materials in Armenian, Russian and English languages, the Armenian version is prevailing.