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Overdraft

Overdraft

Overdrafts on beneficial terms for settlement of short - term financial troubles.

             You are offered overdrafts on beneficial terms for settlement of short - term financial troubles. Overdrafts are free of monthly service fee. Overdrafts are repaid by depositing facilities on bank account, on daily basis upon availability of facilities on the bank account.

  • Interest rate
    from 13%
  • Maturity
    up to 12 months
  • Minimum amount
    Not specified


  • Maximum amount
    Details



 
The page was updated 27.11.2017 14:41

Overdraft

Overdrafts on beneficial terms for settlement of short-term financial troubles.      

General provisions

Purpose Settlement of short-term financial troubles   
Currency AMD, USD
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
Interest rate 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
(uninterrupted)
12 months
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
Acceptable security/collateral  
  • Real property,
  • Fixed assets (equipment, techniques, other property),
  • Vehicles,
  • working assets,
  • receivables rights,
  • cash flows,
  • ]guarantees, warranties
  • cash,
  • precious metals (items) **
  • Shares,
  • Securities,
  • right of collateral
  • other property or property right allowed by the RA legislation 
Unless the amount of overdraft exceeds 30% of NCF, property collateral may not be required, otherwise the property collateral is required, according to the exceeding part at least.
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.

The page was updated 31.05.2018 10:55
Required documents are given in the list at the below link:

The page was updated 27.11.2017 14:52
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.