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Cash  secured  loans

Cash  secured  loans  extended  to  corporate  clients

                Receive loan/credit line secured with cash and/or the right to demand cash on    beneficial terms


  • Տոկոսադրույք
  • Maturity
  • Minimum amount
    100 000 AMD


  • Maximum amount
    Not specified        

The page was updated 11.01.2018 15:13

 Cash secured loan

Loans extended to corporate client secured with cash      

General  terms  and  conditions

Purpose  Loans  extended  to  RA  resident/nonresident    legal  entities,  private  entrepreneurs  and  RA  resident/nonresident    physical  persons  dealing  with  agriculture,  secured  with  cash  and/or  the  right  to  demand    cash 
Type  of  the  loan Loan  /credit  line 
Currency Armenian  dram,  US  dollar,  EUR 
Maximum  amount  of  the  loan Not  limited
Minimum  amount  of  the  loan AMD  100 000  or  equal  foreign  currency
Security  Cash  of  the  client  or  the  third  parties  and/or  the  right  to  demand  in  respect  of  cash 
Loans  extended  in  the  currency  of  the  collateral  Loans  extended  in  the  currency  other  than  the  currency  of  collateral  *
Maximum  maturity  36  months,  or  the  term  equal  to  the  term  of  deposit    12  months 
Interest  rate  1.  for  pledging  right  to  demand  cash  (deposit)  –  annual  interest  rate  paid  against  deposit  +  3  percentage  points 
2.  for  pledging  cash  available  on  the  bank  account  –  annual  interest  rate  paid  against  deposit  +  3  percentage  points
1.  for  pledging  right  to  demand  cash  (deposit)  –  annual  interest  rate  paid  against  deposit  +  3  to  9  percentage  points 
2.  for  pledging  cash  available  on  the  bank  account  –  annual  interest  rate  paid  against  deposit  +  3  to  9  percentage  points
Maximum  loan  to  collateral  ratio  95  %  if  the  interest  amount  is  paid  at  the  time  of  extension  of  the  loan  and  90  %  for  other  frequency  of  payment  75%
Monthly  service  fee  Not  applicable
Loan  application  processing  fee Not  applicable
Upfront  fee Not  applicable 
Opening  /maintenance  of  bank  account  Required,  according  to  the  rates  of  the  Bank 
Repayment  of  principal  and  interest  amounts 1.  interest  repayment  –  on  monthly  basis,  and  the  principal  amount  at  the  maturity,
2.  interest  repayment  –  at  the  time  of  extending  the  loan  and  the  principal  mount  –  at  the  maturity,
3.  Annuity  –  equal  monthly  payments  of  the  principal  and  interest  amounts,
4.  reducing  –  equal  repayment  of  principal  amount  and  monthly  repayment  on  interests 
Special  aspects  of  extending  credit  line  1.  renewable  credit  line, 
2.  Repayment  on  interest  –  monthly 
3.  Annual  rate  for  unused  part  of  the  credit  line  -  0
Method  of  extension  of  the  loan  1.  non-cash,  through  transferring  to  the  bank  account  of  the  client 

2.  non-cash  by  transferring  on  business  card,  according  to  applicable  rates 
Withdrawal  of  the  loan  amount  in  the  case  of  withdrawal  from  bank  account  1.  not  required  for  deposited  cash,
2.  according  to  the  applicable  rates  for  non-cash  deposited  amounts 
Requirements  to  the  credit  history  1.  not  required 
2.  No  overdue/classified  obligations  as  of  the  day  of  receiving  the  loan
Insurance  of  collateral  Not  required
Extension  of  maturity  Not  limited,  under  the  terms  of  lending  applicable  as  of  the  date  of  extension,  unless  overdue/classified  obligations  are  available  as  of  the  date  of  extension 
Fine,  penalty  For  overdue  principal  amount  -    0.1%  daily
For  overdue  interest  amount -  0.1%  daily
Early  repayment  fee    not  applicable 
Where  to  apply Branches  of  the  Bank,  Head  office
Maximum  term  of  taking  decision 1  business  day  after  presenting  complete  file  of  documents  required  by  the  Bank
Term  of  giving  notice  to  the  client  on  taken  decision 1  business  day
Validity  term  of  the  decision  30  business  days
Term  of  re-approval  Maximum  once,  within  30  business  days  after  expiration  of  the  validity  term  of  the  decision,  under  the  terms  of  financing,  applicable  as  of  the  day  of  re-approval 
Term  of  extending  the  loan 1  business  day
*  If  affected  by  the  foreign  currency  fluctuations  during  the  term  of  the  loan,  the  value  of  collateral  drops,  which  results  to  violation  of  the  fixed  loan  to  collateral  ratio,  the  Bank  is  entitled  to  require  the  client  to  early  repay  the  loan  amount  or  a  part  thereof  or  to  add  the  collateral  up  to  the  minimum  loan  to  collateral  ratio  specified  by  the  Agreement.   
In  case  of  change  of  interest  rate  of  the  deposit  the  interest  rate  of  the  loan/credit  line  will  be  accordingly  changed  as  of  the  day  of  such  change,  except  for  cases,  where  at  the  maturity  of  the  deposit  the  client  doesn’t  extend  the  term  of  the  deposit  and  the  amount  of  the  deposit  is  transferred  on  current  account  of  the  client,  to  which  tariffs  applicable  as  of  the  given  day  shall  apply. 


How to calculate interests 


Interest amount is applied to the reduced balance with the account of 365 days a year.

ATTENTION: THE INTEREST ACCRUED TO THE CREDIT AMOUNT IS CALCULATED ON THE BASIS OF NOMINAL INTEREST RATE.   

Exchange rate effect 

Taking into account the fact that the Bank provides loans in both Armenian drams and foreign currency, the borrower should understand that foreign currency fluctuations can have either positive or negative impact on the loan repayment

Loan request rejection 

Upon request of the client the Bank can provide information on rejecting the loan in written form.

ATTENTION: IN CASE OF FAILURE TO REPAY THE LOAN INTEREST AND/OR PRINCIPAL WHEN DUE YOUR ASSETS CAN BE SEIZED. THE INFORMATION ABOUT YOUR OVERDUE LIABILITIES SHALL BE RECORDED IN THE CREDIT REGISTER. 

If the funds received as a result of disposal of pledged property are not enough to cover the borrower's liabilities under the loan, such liabilities shall be paid on the account of other equivalent assets of the borrower.

The page was updated 24.01.2018 09:24
The  list  of  documents  required  for  extension  of  the  loan  is  available  at  the  link  below:

The page was updated 30.11.2017 12:57
Attention: The Bank does not bear any responsibility for the inaccuracy of information on the linked web sites, nor does it accept any responsibility for the advertisements therein or possible consequences arising out of use of information provided on the linked web-sites. In case of any discrepancies in the website materials in Armenian, Russian and English languages, the Armenian version is prevailing.