Energy Efficient Personal Instalment Loan

You have from 12 up to 120 months for the loan repayment⁴.

The following repayment options are available for borrowers:

Option one (reducing): Principal amount is repaid in equal monthly instalments, while the interest charges decrease over time as the size of principal amount due reduces. Therefore, your total monthly repayments will decrease over the loan tenor.

Option two (annuity): Repayments are calculated on an annuity basis. In this instance, over the loan tenor your total monthly repayment amounts will remain consistent, however the proportion of principal loan repayments and monthly interest charges may change.

In case you have outstanding obligations towards the creditor, the following repayment order will apply, when you fulfil your obligations:

1. Penalties
2. Interest
3. Principal

Interest is calculated on a daily basis for 365 days (366 days in case of leap year) on the outstanding balance of the loan.

In case of overdue loan principal and/or interest repayments, the Bank will apply a penalty interest rate of 5% p.a. in addition to the nominal interest rate on the overdue amount.

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 and ACRA Credit Reporting CJSC within 3 business days of credit facility overdue, resulting in negative impact on borrower’s credit history, should the borrower decide to apply for another loan in the future. In case of existence the reporting is applicable for guarantors and co-borrowers as well.

You have a right to obtain your credit history from Credit Bureau free of charge once a year.

Early repayment penalties are not applicable․

You can make early loan repayments through the following methods: 

Option one: By equally reducing the amount of monthly payments and leaving the loan term fixed.

Option two: By reducing the loan term by leaving monthly payments fixed.

ATTENTION

In case of loan early repayment, the Bank will proportionately decrease the total crediting cost of the loan by proportionally reimbursing the customer the interest amount to be paid and other costs charged by the Bank (if applicable).

The bank will provide customers with statements for their loan accounts in the manner and terms stipulated by the RA legislation. These statements can be delivered to your postal address or sent via email. You can familiarise yourself with the conditions, terms and fees for provision of statements, copies of statements or other information by referring to our Tariff of Charges and Terms and Conditions.

BEFORE SIGNING THE LOAN AGREEMENT, INDIVIDUAL BULLETIN TO BE PROVIDED AS PER CENTRAL BANK OF ARMENIA REGULATION 8/05 "ON BUSINESS CONDUCT RULES OF FINANCIAL ORGANIZATIONS"

Before signing the loan agreement, you have the opportunity to get acquainted with the essential terms of the loan and, if desired, compare it with the essential terms of the loan offered by other creditors.

The Individual Bulletin defines the essential terms and tariffs of the given credit, consumer rights and obligations applicable to all customers and the negative consequences in case of non-fulfilment in time.

The Individual Bulletin includes, but is not limited to:

• type of credit
• credit amount
• credit currency
• credit provision term
• credit annual nominal interest rate
• credit annual percentage interest rate
• payment frequency
• prepayment
• credit related payments
• penalties and fines in case of not properly paying loan or interest amounts

If the fulfilment of the consumer's obligations is secured by a pledge and (or) guarantee, security section should cover:

• type of pledge
• note on the guarantor
• and other conditions

The terms of the individual bulletin are effective 10 working days after informing you, as a consumer (guarantor), about the positive decision of the credit application. In case the consumer (guarantor) wants to sign the Individual Bulletin immediately, the Bank gives sufficient time to the consumer (guarantor) to read the Individual Bulletin in detail. If the consumer submits the signed Individual Bulletin to the Bank later than the established term, the Bank decides whether to sign the lending or mortgage lending agreement under those conditions in accordance with its internal legal acts or no.

1.1. 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.

1.1.1. The bank may require the customer’s obligations to be secured with guarantee at its discretion, based on risk assessment results.

2.1. The procedure and deadline for making final decision and informing the applicant about the decision - up to 2 business days after the submission of all other necessary documentation as requested by the bank via customer's preferred channel.

2.2. The maximum period for loan provision/drawdown – within 2 working days after the signing of loan agreement and necessary payments stipulated in the loan agreement.

3.1. Loan approval criteria 

• documented and stable income, which corresponds to the minimum set requirements for a particular loan type
• good credit history, with number of overdue days for all loans during the recent 12 months not exceeding maximum threshold set by the bank
• full document set required for the loan process

3.2. Loan declination criteria

• insufficient funds for servicing the loan, or undocumented income
• information that the loan will not be used for designated purpose
• incorrect and incomplete information provision as part of the loan process
• bad credit history, with number of overdue days for all loans during the recent 12 months not exceeding maximum threshold set by the Bank
• customer age does not meet the age related criteria for the specific loan type
• internal decision making norms
  

You have the right to unilaterally terminate the credit agreement without any reason within 7 working days following its conclusion․