Interest ratefrom 13%
Maturityup to 12 months
Minimum amountNot specified
Overdrafts on beneficial terms for settlement of short-term financial troubles.
|Purpose||Settlement of short-term financial troubles|
|Minimum amount||Not specified|
|Maximum amount||50% of average monthly net cash flows (NCF) through the account of the client during the recent 12 months preceding submission of application of the client, moreover the overdraft is extended in the same currency of the appropriate account (the overdraft is extended in foreign currency if the debiting of account related with the business of the client is in the given foreign currency).|
|Maximum maturity||12 months|
In Armenian drams from 17%,
In US dollars from 13 %
|Monthly service fee||Not applicable|
|Loan application processing fee||Not applicable|
|Upfront fee||1% of overdraft amount, minimum AMD 40 000|
|Repayment of principal and interest amounts||
Repayment of overdraft is carried out through depositing cash on bank account; in case of availability of facilities on the bank account – on daily basis, at the closure of banking day.
Interest is calculated with regard to actual balance of overdraft on each day basis. Repayment of interests – according to overdraft agreement, within the 1-5 days of each month.
Minimum business history
|Minimum requirement to business||Receipt of payments from at least 3 agents with monthly frequency during the most recent 12 months preceding submission of application|
|Opening /maintaining bank account||According to the applicable rates|
|Cashing||According to the applicable rates|
|Eligible age of the borrower/guarantor||Eligible age of private entrepreneurs, physical persons should not exceed 70 at the time of maturity.|
|Requirements to the credit history of the Borrower (including participants held 10% and more in its charter capital) /guarantors||
1. No overdue /classified obligations as of the date of loan application,
2. Good or neutral credit history acceptable by the Bank, according to the internal legal acts of the Bank.
3. Credit history requirements for other participants and parties closely related with the borrowers can be presented by the decision of the competent authorities of the Bank
|Loan to collateral ratio||According to the internal legal acts applicable by the Bank. Loan to collateral ratio is calculated on the basis of appraised liquidity value of the collateral|
|Insurance of collateral||The subject of collateral should be insured from the appraised market value if the subject of collateral is vehicle. The competent authority of the Bank, which takes the decision on the loan can require insurance for the subject of collateral for all other types of collateral.|
|* Gold items are appraised according to the rates applicable at the Bank|
|Fine, penalty||For overdue principal amount - 0.1% daily|
|For overdue interest amount - 0.1% daily|
|Where to apply||Branches of the Bank, Head office|
|Requirements to agreements||The Bank and the client should execute main credit agreement in accordance with standard forms approved by the Bank.|
|Maximum term of taking decision||15 business days 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||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 overdraft||According to the internal legal acts of the Bank|
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.