DEPOSIT SECURED CONSUMER LOAN

You can apply for the loan via acba digital or at a branch by presenting an identification document.

• A decision on the loan application and notification of the customer are made on the same banking day after the required documents are submitted
• IN CASE OF EARLY LOAN REPAYMENT, NO PENALTIES ARE CHARGED FOR LOANS OF UP TO AMD 15 MILLION.
• In case of early repayment within three months for loans exceeding AMD 15,000,000 with a term of more than three months, interest for three months is charged. In case of early repayment before the contractual maturity date for loans with a term of less than three months, the interest amount stipulated by the contract for the entire loan term is charged.

Example of loan interest calculation

• Loan amount – AMD 700,000
• Annual loan interest rate – 14.5%
• Loan term – 60 months
• In this example, the monthly loan payment amount will be AMD 16,481
• The effective annual interest rate will be 15.65%
• The daily interest amount will be calculated as: Loan amount (outstanding balance) × loan interest rate ÷ 365 = (700,000 × 14% ÷ 365) = AMD 278.08

_{*the repayment amount may vary depending on the number of days in the given month.}

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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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

Consumer loans secured by deposit are provided to individual customers of the Bank for consumer purposes, against the pledge of funds available in their accounts.

• The loan amount is provided non-cash,
• The loan is granted or declined taking into account the amount of funds available in the customer’s accounts offered as collateral,
• The loan is arranged at the Bank’s branches,
• 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.

About credit history and credit score assessment

Credit history represents an individual’s credit behavior with respect to active and repaid loans, as well as guarantees provided by that individual. Having a positive credit history plays an important role in making a decision on loan approval. A positive credit history can be built by repaying loans on time and using them for their intended purpose.

For this loan type, a score analysis is not conducted; however, late repayment of loans negatively affects both the FICO score and the score assessment developed by the Bank.

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.