Security and Insurance
- Borrower must be the owner of the car to be pledged.
- The car is pledged to the Bank (firm pledge) until the full repayment of the loan.
- Cars bought from secondary market should not be older than 3 years at the time of granting the loan.
- Borrower must provide car insurance opting from suggested list of insurers. 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.
- Beneficiary rights of the insurance policy will be entitled to the Customer.
- The insurance amount must be equal to the market value of the car.
- The bank reserves the right to demand early repayment of the loan, if the borrower breaks insurance terms specified in the Pledge Agreement.
Warning and important notes
- 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.
- In case if the value of the pledged car is not sufficient to cover the borrower’s obligations, the obligations may be paid-off at the expense of the creditor's other property, in accordance with the RA legislation.
- 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.
- 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.
- The bank may require the customer’s obligations to be secured with a guarantee at its discretion, based on risk assessment results.
5. Loan is provided for buying cars intended for personal use only.
6. Electric Vehicle loan is not provided for motorcycles as well as for cars manufactured more than 36 months ago.
7. Loan drawdown will be done after submission of pledge and insurance agreement/ policy.
8. The loan will be transferred to the merchant / dealer / seller.
9. Valuation and security pledge expenses are borne by the customer.
10. Customers can apply for a loan at any of the bank branches/offices.
11. Bank does not compensate charges and fees applicable for documents and other transactions required for loan processing. All fees are paid by Customer.