- Easy and simpleBorrow up starting as low as AMD 50,000 and up to AMD 2,000,000.
- No provision and service feesThere are no provision and account service fees; you only pay interest for the utilised limit.
- Convenient to useUse overdraft limit by making free cash withdrawals at HSBC Bank Armenia ATMs and branches (free encashment from branches is available only in case if amount is debited from Overdraft limit. Encashment of other amounts from Overdraft is done as per Tariff of charges for individuals and sole entrepreneurs.) or transferring money to preferred account.
Overdraft interest rate
- Annual nominal interest rate: 15%
- Annual Percentage Rate: 16.08%
- For the utilised amount of the overdraft interest is calculated on a daily basis for 365 days and for 366 days in case of leap year
LOAN INTEREST AMOUNT IS BEING CALCULATED BASED ON THE ANNUAL NOMINAL INTEREST RATE, WHEREAS THE ANNUAL PERCENTAGE RATE OR APR INDICATES HOW MUCH WOULD LOAN COST TO BORROWER IN CASE OF REPAYMENT OF INTEREST AMOUNT AND OTHER PAYMENTS UNDER THE DEFINED TIMELINE AND TERMS.
Salaried account holders
- For bank customers and other banks account holders - up to 4 times of net monthly salary
Non-salaried account holders
- Bank account holders - up to 4 times of the lower of last 3 months average monthly balance and average monthly balance of the last month.
- Other banks’ account holders - up to 2 times of the lower of last 3 months average monthly balance and average monthly balance of the last month.
- Overdraft limit may vary from AMD 50,000 up to AMD 2,000,000
- The loan amount will be decreased by the existing unsecured credit facility outstanding amount
- The ratio of overall monthly loan payments to net monthly income cannot exceed 60% if net monthly income is less than AMD 700,000 and 70%, if net monthly income is greater than or equal to AMD 700,000
Overdraft is provided in AMD.
Overdraft is provided for unlimited period.
Overdraft service fee
- Overdraft is provided free of charge
- There is no monthly service fee applied for overdraft. Customer only pays service fees for current/savings account linked to overdraft as per standard tariffs.
Default interest rate and penatly
- No early repayment fee is applicable.
The bank will provide customers with statements for their loan accounts in the manner and terms stipulated by the RA legislation. The statements can be delivered to the customer's postal address, sent via email or collected from any branch of the bank. You can familiarise yourself with the conditions, terms and fees for provision of statements, copies of statements or other information by referring to Tariff of Charges and Terms and conditions.
Overdraft important notes
In case if overdraft utilisation exceeds the provided limit, 24% annual nominal interest rate will be applied on over limit amount
BEFORE SIGNING THE OVERDRAFT AGREEMENT, INDIVIDUAL BULLETIN WITH OVERDRAFT TERMS 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-fulfillment in time.
The Individual Bulletin includes, but is not limited to:
- type of credit
- credit amount
- credit provision term
- credit annual nominal interest rate
- credit annual percentage interest rate
- credit related payments
- if the fulfillment 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
We would also like to inform you that there may be differences between the Individual Bulletin and mortgage lending agreements due to changes in the repayment schedule and (or) the exchange rate.
The terms of the Individual Bulletin are valid for 10 working days after informing you, as a consumer, 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.
ATTENTION: IF YOU DON'T PAY THE DUE AMOUNT OF YOUR OVERDRAFT OR MAKE AN INCOMPLETE PAYMENT, INFORMATION ABOUT CREDIT HISTORY WILL BE SUBMITTED TO CENTRAL BANK OF ARMENIA AND ACRA CREDIT REPORTING CJSC IN THREE WORKING DAYS, RESULTING IN NEGATIVE IMPACT ON YOUR CREDIT HISTORY, SHOULD YOU DECIDE TO APPLY FOR ANOTHER LOAN IN THE FUTURE. YOU HAVE A RIGHT TO OBTAIN YOUR CREDIT HISTORY FROM CREDIT BUREAU FREE OF CHARGE ONCE A YEAR.
You're eligible to apply for an overdraft if you're RA Resident1 and meet the minimum criteria for salaried and non-salaried account holders.
Salaried account holder criteria
You must have:
- an account with us
- at least 3 months employment with a current employer
- a net monthly salary of at least AMD 50,0002.
Your salary should be transferred to your account after loan drawdown (in case if prior salary transfer is not required by us)3.
If you don't have account with us, you must have:
- an account with another bank
- at least 3 months employment history
- a salary transferred to your account for 3 months
- a net monthly salary of at least AMD 150,000
Non-salaried account holder criteria
You must have a satisfactory banking relationship with us or other local banks for a period of 3 months and more, and the last 3 months average monthly balance and average balance of the last month have been at least:
- AMD 100,000 (or equivalent in foreign currency) if your account is with us
- AMD 250,000 (or equivalent in foreign currency) if you account is with another local bank
Customer’s minimum age should be 18. Customer's maximum age should not exceed 65.