1. Security and Insurance
1.1. Borrower must be the owner of the car to be pledged.
1.2. The car is pledged to the Bank until the full repayment of the loan.
1.3. Borrower must provide car insurance opting from suggested list of insurers1. The insurance policy should be reissued every year during the whole term of the agreement. Should the borrower fail to arrange the insurance, the Bank will arrange an insurance at the borrower's cost.
1.4. Beneficiary rights of the insurance policy will be entitled to the Customer.
1.5. The insurance amount must be equal to the market value of the car.
1.6. The bank reserves the right to demand early repayment of the loan, if the borrower breaks insurance terms specified in the Pledge Agreement.
2. Warning and important notes
2.1. If the customer fails or regularly delays the loan repayment or any of obligations specified in loan agreement, the Bank reserves the right to repossess the pledged car, without recourse to the court and use the sales proceeds for full repayment of the loan outstanding amount.
2.2. In case if the value of the pledged car is not sufficient to cover the customer's obligations, the obligations may be paid-off at the expense of the creditor's other property, in accordance with the RA legislation.
2.3. If the borrower does not pay the interest and loan principal amounts in time, information about credit history will be submitted to the Central Bank of Armenia credit register and ACRA Credit Reporting CJSC.
2.4. The bank makes the decision on provision of loans at its discretion taking into consideration the conformity of the loan application to the announced requirements of the given loan type as well as evaluating such essential factors as the creditworthiness of the applicant, any overdue payments and other factors.
2.4.1 The bank may require the customer’s obligations to be secured with a guarantee at its discretion, based on risk assessment results.
Information for guarantor
2.5. Loan is provided for buying cars intended for personal use only.
2.6. Car loan is not provided for motorcycles as well as for cars manufactured more than 120 months ago.
2.7. Loan drawdown will be done after submission of pledge and insurance agreement/ policy.
2.8. The loan will be transferred to customer's bank account.
2.9. Valuation and security pledge expenses are borne by the customer. Details of expenses:
2.10. Customers can apply for a loan at any of the bank branches/offices.
2.11. Bank does not compensate charges and fees applicable for documents and other transactions required for loan processing. All fees are paid by Customer.
3. Default interest rate and penalties
3.1. In case of overdue/default on loan principal and/or interest the Bank will apply default interest rate - 5% p.a. plus the loan nominal interest rate per annum, on the overdue amount.
3.2. No early repayment fee is applicable.
4. The deadlines for decision making of loan application and loan provision/drawdown
4.1. The maximum period for making final decision and informing the applicant - within 2-5 working days after the submission of all other necessary documentation as requested by the Bank.
4.2. The maximum period for loan provision/drawdown–within 2 working days after the receipt of pledge certificate.
5. Loan approval and declination criteria
5.1. Loan approval criteria
5.2. Loan declination criteria
1Cost of car insurance is equal to 2.5% of the car market value.
In case of discrepancies between the Armenian and English versions of this page, the Armenian version shall prevail.
Last updated on: 16/01/2019 12:00