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Gold secured loans Gold Standard

Gold Standard

Gold secured loans

Get a quick and favorable gold secured loan, disbursed in Armenian drams, with interest rate starting from 7%, and maturity date up to 36 months.

  • Interest rate
    7%-18%
  • Maturity
    4-60 months
  • Minimum amount
    30 000 AMD 
    or 75 USD
  • Maximum amount
    30 000 000 AMD
    or 50 000 USD



The page was updated 15.07.2019 16:37

Gold Standard 

Gold secured loans
 
 

General terms and conditions

1 Loan currency
Armenian dram (AMD), US dollar (USD)
2 Minimum loan limit
30 000 AMD
60 USD
3 Maximum loan limit 1) 30 000 000 AMD/ 60 000 USD, or
2) 2 500,000 AMD/ 5 000 USD 
With a 150%* loan to collateral ratio
4 Loan types 
1) loans – for AMD loans
2) card loans – for USD loans 
5.    

Option 1

5.1 Maximum loan to collateral ratio
100%
5.2 Principal and interest repayment
Interest – upon loan provision and the principal amount – at the maturity (discount)
5.3 Maturity
from 90 to 93 days inclusive     from 181 to 193 days inclusive
5.4 Annual interest rate
AMD
8%  11%
USD
7%  7.5%
5.5 Loan disbursement fee at the moment of loan provision (deducted from contractual amount)
AMD   
2%
USD  
5.6 Monthly loan maintenance fee  
AMD
Not specified
USD    
6.     Option 2
6.1 Maximum loan to collateral ratio
100% 100%
150%* for collateral borrowers
6.2 Repayment of principal and interest amounts
Interest – every month, and the principal amount – at the maturity (discount)
annuity
6.3 Maturity
from 120 to 730 days inclusive** 
from 365 to 1095 days inclusive
6.4 Annual interest rate
AMD
18% 16%
USD   14% 11%
6.5 Loan disbursement fee, at the moment of loan provision  deducted from the loan contractual amount)  
AMD
1% 1%
USD  0.3% 1%
     - [1] No fee is charged while lending to individuals engaged in gold trade and/or production.

[2] No fee is charged for gold secured loans, transferred from other banks of RA, if the client provides a receipt for repayment of the loan with an overdue by no more than 5 working days.
6.6 Monthly loan maintenance fee
AMD
 not charged  
USD  
 6.7   Grace period for loan repayment           - The first 6 months of loan repayment; during this period only interest payments are made       
The first 12 months of loan repayment, but the loan annual interest rate is set as of the given variant + 1%.       
7 Requirements to the borrower:
Borrower
- An individual aged not less than 18  on the loan provision date  and not older than 70 on the loan maturity date,
- The borrower should have no overdue obligations  on the date of loan application,

- The maximum credit grade through 12 months, preceding the loan disbursement date – controlled.        

* Loan to collateral ratio for the clients who have real estate secured loans at the Bank can be established at 150%, but no more than 50% of the aggregate amount of the outstanding balance of the loans, secured with real estate. Moreover, in such a case the Bank should sign an additional agreement with the client stating, that the real estate may be released from the collateral, provided however, that the client has repaid the gold secured loan.

10 Card type 
ArCa Classic
11 Cashing fee
not charged
12 Annual card maintenance fee
1 000 AMD
13 Other card service rates
According to the Bank's tariffs
 

Fines and penalties

14 Overdue loan payment penalty ( per day)
0.10%
15 Overdue interest payment penalty (per day)
0.10%
16 Early repayment fee
not charged
  Collateral Requirements:**
17 a) Standardized gold bullions, articles of gold jewelry and gold scrap can be accepted as collateral.
b) White gold, jewelry with 30% and more white gold content, as well as and the jewelry which cannot be priced separately from its white gold part, cannot be accepted as collateral.
c) The art value of gold jewelry, precious and semiprecious stones are not considered as collateral.
18 d) Appraisal of the gold as collateral is carried out by a jeweler–expert, according to the Bank's acting tariffs.
  Required documents
19 1) Identification document,
2) Social card/ Public service number/ Identification card/ the number of the reference verifying that the Public service number was not granted (if available). 

Other terms and conditions

20 Positive factors for loan disbursing 
Compliance with the terms and conditions established by the Bank
21 Loan rejection grounds
1) Existence of overdue loan obligations as on the date of loan disbursing, 
2) Failure to provide required documents,
3) Suspicions regarding the individual or his/her ID document,
4) Suspicions regarding the sample during the gold validity check, false or unreliable
information as well as submission of forged documents,
5) Availability of information about the client, which calls into question the information provided/ submitted by the client to the Bank,
6) Availability of information about the client, which calls into question the return of the loan.
22 Maximum decision making term
The loan application day 
23 Term of informing the borrower about the decision
The loan application day 
24 Term of loan disbursement
The loan application day 
25 Loan application place  
All branches of the Bank
26 Loan processing and disbursement place 
All branches of the Bank

  [1] As a proof of performing activities the individual must present the lease agreement on the place of economic activity (notarization is not mandatory).

In the case of gold secured card loans, the client is not provided with payment card if he/she already has a valid payment card within this product.

If, after full repayment of the loan, the client doesn’t appear to receive the pledged gold items, then starting from the 30th day a 100 AMD fee will be charged daily.


A sample of annual actual interest rate calculation for Gold Standard loan:

• Amount: 1 000 000 AMD
• Interest rate: 11%
• Maturity: 6 months 
• Disbursement fee: 1% 
• Redemption method: discount
• Effective rate: 16.87%

For gold secured loans the appraisal of 1gram of gold is carried out according to the following prices, based on the purity:

Gold content   

Price for 1 gram   

375

8 100 AMD

500

10 800 AMD

560

12 100 AMD

585

12 700 AMD

750

16 200 AMD

875

18 900 AMD

900

19 400 AMD

958 and higher

20 700 AMD

 

Interest payment calculation method

The interest rate is applied on a deductible balance of the loan, based on the 365 days' calculation.


ATTENTION: CREDIT INTEREST IS CALCULATED ON THE BASIS OF THE NOMINAL INTEREST RATES.. THE ACTUAL ANNUAL INTEREST RATE SHOWS THE COST OF THE LOAN IF YOU PAY THE INTEREST AND OTHER DUE PAYMENTS WITHIN THE DEFINED TERMS AND AMOUNTS.

Early repayment of the loan

No early repayment fee is charged.

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/ negative impact on the loan repayment.

Loan request rejection

The Bank may reject loan applications of those clients, who fail to meet the program requirements or if the Bank is not sure of the solvency of clients; the Bank can provide written notice on rejection upon request of the client. The Bank is liable to provide such information on rejecting the loan to other banks of RA and credit organizations (according to the RA Law on bank secrecy).

ATTENTION: IN CASE OF FAILURE TO REPAY THE INTEREST AND THE PRINCIPAL AMOUNT OF LOAN YOUR ASSETS CAN BE SEIZED. IF YOU DO NOT MAKE THE INTEREST AND PRINCIPAL PAYMENTS IN TIME THE INFORMATION ABOUT YOUR OVERDUE LIABILITIES WILL BE RECORDED IN THE CREDIT REGISTER.

In case the borrower fails to fulfill his/her liabilities, they are repaid at the expense of the collateral, and if the pledge is insufficient to cover the borrower's loan obligations, then the liabilities can be fulfilled at the expense of other property, belonging to the borrower.

Before making a loan agreement, the Bank issues an Individual Sheet according to the provisions of 8/05 of the "Procedure, Conditions, Forms and Minimum Requirements of the Bank and Depositor, Creditor and Consumer" Regulation, approved by the Central Bank Board.

The page was updated 15.07.2019 16:31

The following documents should be submitted to the Bank to get gold secured loan:


  • ID document    

  • Public service number /reference on non-receiving the PSN

The page was updated 22.11.2017 11:53
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.