CARD CREDIT LINE

• The applicant’s (guarantor’s, pledgor’s) identity document,
• a reference from the place of employment* and/or documents confirming income (if required),
• documents confirming ownership of the proposed collateral, photos (in the case of credit lines secured by collateral).

The validity of the documents at the time of submission must not exceed 15 days.

Depending on various circumstances, additional documents and information may be required.

_{*The reference must contain the client's net monthly salary/income after paying taxes, the address of the place of work, phone numbers, the signature and seal of the head of the organization issuing the reference, an outgoing reference number, and the month and date of issuance.}

• A decision on the loan application and notification of the customer are made in 1 banking day for credit lines without collateral, and in maximum 10 banking days for credit lines secured with collateral, after the required documents are submitted.
• In the event of a positive decision on granting the credit line, the availability of the card, and, in the case of credit lines secured by collateral, the completion of the collateralization process, the credit line is arranged within a maximum of 1 banking day.
• In the event of a positive decision to grant a credit line of up to AMD 5 million, the signing of the credit package and the arrangement of the credit line may be carried out without visiting the Bank, by signing the credit package digitally.

IN CASE OF EARLY CREDIT LINE REPAYMENT, NO PENALTIES ARE CHARGED.

Example of credit line calculation:

• For a credit line with a term of 36 months, an annual interest rate of 19.5%, and an amount of AMD 700,000 issued on a VISA Classic card, the annual effective interest rate will be 16.59%. The daily interest amount will be calculated as follows:
• Used credit line amount × Interest rate ÷ 365 = (700,000 × 19.5% ÷ 365) = AMD 373.97.

NOTE: LOAN INTEREST IS CALCULATED BASED ON THE NOMINAL INTEREST RATE, WHILE THE ANNUAL EFFECTIVE INTEREST RATE SHOWS HOW MUCH THE LOAN WILL ACTUALLY COST YOU, PROVIDED THAT ALL INTEREST PAYMENTS AND ALL MANDATORY PAYMENTS RELATED TO LOAN DISBURSEMENT AND SERVICING ARE MADE WITHIN THE SPECIFIED TIMEFRAMES AND AMOUNTS. YOU CAN FIND THE CALCULATION OF THE EFFECTIVE INTEREST RATE HERE.

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Card issuance and service fees by card type – Card tariffs.

In case the borrower fails to fulfill their obligations on time, a penalty of 0.13% is charged for each overdue day (applicable penalties).

Loan repayments are made in the following order (when settling overdue obligations):

• Penalty/fine
• Interest
• Principal amount

Qualified independent appraisal companies cooperating with the Bank.

• The credit line amount is provided in non-cash form,
• Factors for a positive loan approval decision include the assessment of the customer’s creditworthiness,
• Factors for loan rejection include insufficient financial indicators identified through analysis, the customer’s poor credit history, insufficient or absence of required collateral, the professional opinion of the Business Consultant, the professional opinion of the Credit committee.
• The credit line is arranged at the Bank’s branches,
• If the credit line is granted based on collateral in the form of real estate, vehicles, agricultural and other machinery, equipment, and devices, and the property is valued at AMD 30 million or more, the property must also be appraised by a qualified independent appraiser cooperating with the Bank.
• During the term of the agreement, statements are provided via email every thirty days, unless the customer chooses another method of communication.

During the term of the agreement, the loan account statement and other information that are subject to mandatory disclosure under the legislation of the RA are provided free of charge. Statements not subject to mandatory disclosure under the legislation of the RA, as well as duplicate statements, are provided as follows:

• For statements with a period of up to 6 months (inclusive) – free of charge
• For statements with a period of 6 to 12 months (inclusive) – AMD 2,000 (including VAT)
• For statements with a period of more than 1 year – AMD 3,000 (including VAT).

YOU HAVE THE RIGHT TO COMMUNICATE WITH THE FINANCIAL INSTITUTION IN YOUR PREFERRED WAY, EITHER BY POSTAL MAIL OR THROUGH DIGITAL CHANNELS. RECEIVING INFORMATION DIGITALLY IS THE MOST CONVENIENT OPTION. IT IS AVAILABLE 24/7, ELIMINATES THE RISK OF LOSS OF PAPER DOCUMENTS, AND ENSURES CONFIDENTIALITY.

The Bank may unilaterally change the interest rate specified in the agreement by notifying the Borrower at least 7 calendar days in advance in the event of misuse of the loan, as well as failure to fulfill the obligations set out in the loan agreement.

NOTE: WHEN APPLYING FOR A LOAN, THE BANK WILL PROVIDE YOU AND THE GUARANTOR(S) (if any) WITH AN INDIVIDUAL INFORMATION SHEET ON THE ESSENTIAL TERMS OF THE CONSUMER LOAN.

Foreclosure of collateral.

THE PLEDGED PROPERTY MAY BE FORECLOSED IF THE BORROWER FAILS TO MAKE TIMELY PAYMENTS OF INTEREST AND LOAN PRINCIPAL. IN CASE THE VALUE OF THE COLLATERAL IS INSUFFICIENT, THE BORROWER’S OBLIGATIONS WILL BE SETTLED AT THE EXPENSE OF THE BORROWER’S OTHER PROPERTY.

Information provided to the Credit register:

NOTE: IN CASE OF YOUR FAILURE OR IMPROPER PERFORMANCE OF YOUR OBLIGATIONS, THE LENDER WILL, AFTER 3 BUSINESS DAYS, SUBMIT SUCH INFORMATION TO THE CREDIT BUREAU, WHERE YOUR CREDIT HISTORY IS FORMED. YOU HAVE THE RIGHT TO OBTAIN YOUR CREDIT HISTORY FROM THE CREDIT BUREAU FREE OF CHARGE ONCE A YEAR.

NOTE: A POOR CREDIT HISTORY MAY HINDER YOUR ABILITY TO OBTAIN A LOAN IN THE FUTURE.

FOR GUARANTORS:

Please, be informed:

• If the borrower fails to fulfill their obligations, you will be required to pay on their behalf, with a negative impact on your credit history, and the possibility to lose your property.
• You will be provided with copies of the loan and the guarantee agreement, and the repayment schedule.
• Communication will be carried out using the method chosen by you.
• You will be notified 7 days in advance of any changes to the terms of the agreement.
• A reminder will be sent 1 day in advance regarding the existing obligation.
• In case of delayed loan repayment, you will be informed no later than one day after the delay occurs.

THE GUARANTOR HAS THE RIGHT TO:

• Request information from the lender at any time regarding the outstanding loan balance.
• Recover from the borrower the amounts paid by you on the loan, as well as any other losses incurred on behalf of the borrower.
• You can learn more about the importance of credit history and the use of credit scoring here.

Your financial informant

www.fininfo.am

NOTE: "YOUR FINANCIAL INFORMANT" IS AN ELECTRONIC SYSTEM THAT MAKES IT EASY TO SEARCH FOR, COMPARE, AND CHOOSE THE MOST EFFECTIVE OPTION FOR INDIVIDUALS.