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Buying credits
Credit calculator
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Monthly fee֏ - ֏
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Credit Interest16 % - 24 %
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Credit amount֏
Information
| TERMS | ||||
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1. Targeted geography |
RA |
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2. Target market |
Resident individuals, legal entities and sole entrepreneurs registered in the RA | |||
| 3. Credit products to be acquired | Consumer, Agricultural and Business credits with/out collateral | |||
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4. Credit amount 1 |
Up to 20 000 000 AMD – in case of real estate located in the areas included the Zone 1 * Up to 10 000 000 AMD- in case of real estate located in the areas included the Zone 2 *
Cities included in Zone 1: Yerevan, Ashtarak, Abovyan, Etchmiadzin, Masis. Villages included in Zone 1: Arinj, Dzoraghbyur, Jrvezh, Aintap, Geghanist, Getapnya, Khachpar, Zovuni, Proshyan, Kasakh, Mughni. Zone 2: all RA communities that are not included in Zone 1. Except the credit amount that will be bought, additional amount can be disbursed within the mentioned amount limits2 * not more than 30% of the liquidation value of the pledge |
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5. Credit Currency and the Type of one time Disbursement |
The credit amounts subject to buying from other financial institutions also shall be disbursed via transfer, aiming at repaying the credit liabilities active in another financial institution. |
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6. Credit Terms |
36 to 120 months3 | |||
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7. Credit Interest4 |
In the case of documented income |
In case of other income |
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In the case of documented income -2% less from the annual average weighted interest rate of the credits subject to acquisition but not less than 16% |
In case of other income -1% less from the annual average weighted interest rate of the credits subject to acquisition but not less than 17% |
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| In case of submitting information on salary/ies (reference, contract, excerpt from the employment order statement or turnover on bank account for the last 3 months, Nork query, etc.) or income (notarized lease agreement signed for at least 6 months, professional pension). In the case of salary, the borrower must have at least three-months working experience in the mentioned organization |
(other income not considered as documented) |
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| It is calculated on the actual outstanding balance of the Credit amount. Except if there is overdue Credit amount the interest is calculated on monthly outstanding balance of the Credit amount defined in the Repayment schedule | ||||
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8.Actual credit interest |
17.54%-27․79% | |||
| 9.Other requirements |
DTI (Debt to income ratio) ≤50%* *The ratio of total credit liabilities (average monthly, including the ones considering in the scope of this Terms as well) and net income |
FICO≥ 600 or N/A |
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| 10.Credit/Pledge ratio |
Zone 1 - up to 70% of the liquidation value of the pledge Zone 2 - Up to 50% of the liquidation value of the pledge |
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| 11. Credit disbursement fee |
1% one-time calculated on the disbursed amount and charged at disbursement time |
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12. Monthly service fee |
N/A | |||
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13. Principal and Interest payments5 |
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14. Security |
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15. Requirements on the Client |
Absence of overdue liabilities at the moment of submitting the credit application | |||
| 16. Requirements on the pledged property |
The pledged real estate shall 1. have a stone, panel, or reinforced concrete structure (except for partitions and mezzanines) except plots, garages, parking lots 2. not be a public dwelling or in the territory of another building, a dormitory. 3. not be in the overriding public interest 4. not be in a 3rd and more degree of emergency building. 5. not have a common yard area, common or joint ownership with other properties in case of house 6. in case of house, the real estate to be pledged shall be pledged fully |
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17. Fines and Penalties |
0.13% daily penalty, which is calculated on the amount due that month per repayment schedule, but not paid. The calculation of penalties shall start from the delay of each repayment day defined by the Repayment Schedule and stop on the full repayment day of the overdue liability. In case of the end of the credit repayment term, the amount to be paid in the given month is considered as the amount paid in the last month.
*The total amount of all penalties defined by the Contract cannot exceed the outstanding debt amount available at that moment. |
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| 18. Costs made for pledging |
Besides the commission fees mentioned in this Terms, the Borrower shall make the following costs as well (in case of 1 pledge) 6
The evaluating companies cooperationg with the Organization are
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| 19.Other Terms | In accordance with the terms of the Organization’s current credit product “Consumer credits secured with the pledged real estate” | |||
"1. The outstanding sum of Agro/ Business Credits with guarantees and/or without security/collateral (including other credit types disbursed according to the previous terms ) cannot exceed 3 000 000 AMD at the moment of “Buying Credits” disbursement. The borrower may have Consumer Credit/s.
"2" The borrower’s liabilities in other financial organizations are considered credit amount subject to buying
"3" The mentioned term can be in average 20 days more based on credit disbursement day.
"4" If the credit to be bought has also a monthly service fee, then the annual interest rate of the credit to be bought is calculated based on actual interest rate, in the case of absence of information about the latter the nominal rate is accepted.
"5" 'If the repayment day is a non-working day then the repayment day is considered the next working day following the non-working day and the interest calculated towards the actual repayment day is paid.
"6" The submitted fees may be changed based on the pledge type.
NOTICE
- THE ANNUAL ACTUAL INTEREST RATE SPECIFIES THE EXTENT OF THE COST OF THE CREDIT FOR A BORROWER IN CASE OF REPAYING INTERESTS AND OTHER FEES IN A TIMELY AND PROPER MANNER. THE CALCULATION OF THE ANNUAL ACTUAL INTEREST IS PRESENTED BELLOW.
- IN CASE THE BORROWER FAILS TO REPAY THE CREDIT AMOUNT AND INTERESTS IN PROPER AND TIMELY MANNER, NEGATIVE INFORMATION ON HIM/HER WILL BE RECORDED IN THE CREDIT REGISTRY.
- THE PLEDGED PROPERTY CAN BE FORECLOSED BY THE ORDER DEFINED BY LAW, IF THE BORROWER DOES NOT REPAY THE CREDIT AND INTEREST AMOUNTS IN A PROPER AND TIMELY MANNER. IN THE EVENT OF CLIENT’S FAILURE TO FULFIL THE OBLIGATIONS, WHEN CREDIT OBLIGATIONS ARE REPAID AT THE EXPENSE OF COLLATERAL, IF THE COLLATERAL IS NOT SUFFICIENT TO COVER CLIENT’S OBLIGATIONS FULLY, THE LATTER CAN BE REPAID TROUGH THE FORECLOSURE OF OTHER PROPERTY OF THE CLIENT.
- IN THE CASE OF CREDITS SECURED BY A GUARANTEE, IF THE BORROWER DOES NOT FULFILL HIS/HER OBLIGATIONS, THE GUARANTOR IS OBLIGED TO REPAY INSTEAD OF THE BORROWER, OTHERWISE THE CREDIT HISTORY OF THE GUARANTOR WILL ALSO HAVE DETERIORATE AND THE GUARANTOR MAY BE DEPRIVED OF HIS/HER PROPERTY.
The Calculation of the Annual Actual Interest
Article 13. The formula and Explanations of AAI calculation
- The Annual Actual Interest is calculated taking into account the following formula:
Where.
i - The Annual Actual Interest(AAI).
A -The Credit amount (The primary credit amount disbursed by the creditor to consumer).
n - The number of the credit repayment.
N –The number of the last credit repayment.
Kn- the credit repayment amount.
Dn- The period between the credit disbursement and credit repayment dates expressed by the number of the days.
i -the actual annual interest can be calculated, if the other data of the equation is known from the Credit Contract etc.
Article 14. The Calculation of the Actual Annual Interest
1. The Actual Annual Interest is calculated at the time of signing the Credit Contract, assuming, that the Credit Contract will be effective in the manner specified by the Contract and the Parties who signed the Credit Contract shall fulfill their liabilities in a proper and timely manner.
2. In case if the Credit Contract specifies provisions which allow deviations and changes in the number and extent of interests and/or other fees included in the total crediting cost of the consumer and it is impossible to identify the number of changes, the Annual Actual Interest shall be calculated so as the interests and/or other fees included in the consumer’s total crediting cost shall be fixed and applied till the end of the Credit Contract term.
3. The following principles are effective in case of calculating the actual annual interest (upon necessity):
1 In case if the credit maximum amount is not specified by the Credit Contract, the disbursed maximum credit amount is one million AMD.
2) If the Credit Contract specifies that the consumer can receive the credit amount part by part, or can choose the date of the credit disbursement, then it’s considered, that the credit amount was disbursed to the consumer totally at the moment of contract signing.
3) In case if the Credit Repayment Schedule or other terms and conditions of the credit repayment are not specified by the Credit Contract, the deadline for the credit repayment is one year.
4) In case if the credit contract defines more than one credit repayment term, the credit repayment shall be fulfilled in the nearest term defined by the Credit Contract, if there is not prescribed anything else by the Credit Contract.
4. The Central Bank, in accordance with its legal acts, can define explanations and samples of AAI (Annual Actual Interest) calculation and formula specified by Article 13.
ATTENTION
WHEN APPLYING FOR THE CREDIT, THE CREDITOR WILL PROVIDE INDIVIDUAL BULLETIN ON ESSENTIAL TERMS OF THE CREDIT, IN WHICH THE INDIVIDUAL TERMS OF THE CREDIT TO BE DISBURSED WILL BE SUBMITTED.
List of the documents required by the Borrower
- For individual Borrower
- Passport or identification document (ID card) ,If the person does not submit ID card, then social service card or reference on providing social service card or reference on refusing to receive social service card shall be submitted
- Reference on family members, residence address (upon necessity)
- Documents containing respective information on salary/s (reference, contract, excerpt from the order, statement on bank account, turnover or income registered in “Nork” Information System, etc.) and/or other documents about the income (per Credit Terms)
- Title of the pledged property
- Other additional documents.
For the legal entities as well as
- Charter with amendments and changes.
- Certificate from the State registry about the last changes in the Charter and participants.
- The participants’ or shareholders’ decision about borrowing the credit.
- Reference about the debit and credit liabilities (mentioning the size of the liability and terms of repayments).
- Reference about participation (more than 10%) in other legal entity
In case of credits secured with pledged real estate
- Preliminary evaluation report of the pledged real estate
Documents required after approving the credit with the pledged real estate:
- Final evaluation report of the pledged real estate
- Reference on restrictions of pledged property from the regional subdivision of the RA Cadaster State Committee
For guarantor(s)
- Passport/identification document, social card or reference on not having the social service card.
- Documents containing respective information on salary/s (reference, contract, excerpt from the order, statement on bank account, turnover or income registered in “Nork” Information system, etc.) and/or other document about the income (per Credit Terms)
- Certificate (s) of ownership (upon necessity).
- Other documents
Pledger/s
- Passport/identification card, social card
- Marriage (divorce, spouse’s death) certificate (if available)
- Ownership certificate/s and their justifications (upon necessity) of the pledged property
- Insurance contract of the pledge, upon necessity (in case of approving the credit)
- Other documents
Resident individuals, legal entities and sole entrepreneurs registered in the RA
1․ Before signing the credit contract, the Organization provides the Client with an individual bulletin of essential terms of the credit, in which the individual terms of the loan to be provided to the Client are presented.
2․ The Client has the right to unilaterally terminate the credit contract without any reason within 7 (seven) working days (time for reflection) following its conclusion, returning the loan amount in full and paying interest calculated in accordance with the actual annual interest rate stipulated in the agreement.
3․ In case of early repayment, the total cost of crediting for the Borrower shall be reduced proportionally.
4․ The Client has the right to fulfill(repay) the obligations under the credit agreement ahead of schedule, regardless of whether such a right is stipulated in the credit agreement or not.
5. The credit interests shall be calculated based on the nominal interest rate. The credit interest is calculated on the actual balance of the credit.
6. The credit is provided to the Client within 1 business day after the signing of the contract. In cases when the fulfilment of credit obligations is secured by a pledge, the rights to which are subject to state registration, the credit is disbursed to the client within 2 business days after the state registration of the Organization’s pledge right. To receive the credit, the Client submits a statement/reference containing his/her bank/card account number.
7. The Organization informs the Client about the decision regarding the loan disbursement within one working day after the decision is made. The Organization can inform the Client about the decision made regarding the disbursement of the loan on the territory of the Organization, through a phone call or an e-mail.
8. To receive the loan, the Client submits a statement/reference containing his/her bank/card account number. The credit amount is transferred to the Client’s bank/card account on the day scheduled for credit issuance.
9. After a credit is issued the Organization sends the complete information about that credit to the Credit Bureau within 3 (three) working days, and the current information about the credit is regularly updated during the entire term of the credit. Information submitted to the Credit Bureau includes the essential terms of the credit, including the amounts disbursed and repaid, disbursement and maturity dates, the interest rate, as well as the risk class, days overdue, etc.
The Client’s credit history is formed in the Credit Bureau based on the data received from all lending financial organizations. Credit history is the information about the obligations assumed by the customer, which shows the debts, payments, payment habits or information about the obligations or their fulfillment of the subject of credit information, reflecting the credit data of the last 5 years from the time of the request.
A bad credit history can prevent the Client from getting a credit in the future. In order to avoid deterioration of the credit historyor to improve the credit history the client needs to make payments according to the schedule defined by the contract and exclude the existence of overdue liabilities on existing credits.
The Client has the right to receive his/her credit history from the Credit Bureau once a year free of charge. If, according to the client, there are incomplete or incorrect data in his/her credit history, the client can contact the ACRA credit bureau to find out what data is stored about him/her and what is the source of the incorrect or incomplete information. In order to correct incomplete or incorrect data in the credit history, the client can also contact the financial organization that is the source of the incorrect or incomplete information.
Information about credit history is presented on www.abcfinance.am and www.acra.am websites.
10. For credit evaluation, the Organization uses creditworthiness evaluation system and/or a FICO score. The factors that have the main influence on the income and expenses evaluation system and/or the internal creditworthiness evaluation system are: information on the Client's employment and income, their stability and periodicity, the availability of certifying documents, the amount of income, the amount and structure of expenses, including the monthly amounts allocated to the servicing of existing loans, the total amount of current loans, number of credit requests, existence of overdue obligations, etc., as well as similar information about family members and related parties. The factors considered can vary across different credit products.
For improving creditworthiness, the client must pay attention to the improvement of the listed factors and avoid the appearance of the factors mentioned in point 12.
Information on the formation of the FICO score is presented on the websites www.acra.am and www.abcfinance.am.
11. Factors that have positive impact on loan disbursement:
- presence of income
- satisfactory credit rating
- absence of overdue credit liabilities .
12. Factors that have negative impact on loan disbursement:
- unreliability of documents provided by the Client
- failure to submit required documents
- negative information received from the ACRA Credit Bureau and/or other specialized organization
- information that puts into question the information provided/declared by the Client to the Organization
- information on the borrower that puts into question the recoverability of the credit
- absence of security required for credit repayment
- other valid reasons.
13. The Client is entitled to communicate with the Organization through a preferred means of communication: e-mail or postal service. The electronic means of communication is the most comfortable. It is available 24/7 and is free of the risk of losing information in paper form, as well as ensures confidentiality.
14. "Your financial informant" is an electronic system that facilitates the search, comparison of services offered to individuals and the choice of the most effective option for the client. http/: www.fininfo.am/.
15. Disputes arising between the parties can be settled in court, through arbitrations operating in the territory of the RA or through the Financial System Mediator (as prescribed by the RA law on “Financial System Mediator”), located at 0010, Yerevan, 15 M. Khorenatsi Str, “Elite Plaza” business center, 7th floor, e-mail: info@fsm.am, telephone: (+37460) 70-11-11, fax: (+37410) 58-24-21. “AREGAK” UCO CJSC has not waived the right to challenge the decisions of the Financial System Mediator, which means that the Organization can in some cases, appeal the decisions made by the Financial System Mediator against "AREGAK" UCO CJSC in court.
16. To conduct a proper study of the client as defined by RA law on “Combating Money Laundering and Terrorism Financing”, the Organization may require additional documents or information based on “Know Your Client” principle.
17. For providing additional information on credit liabilities in the Organization: (statement, reference, etc.) the following tariffs are applied: provision of statement on repaid loans free of charge for once, if provided within 30 days after repayment - and if provided within 31 days or more - 5000 (five thousand) AMD (VAT included). For existing loans, the provision of information once a month during the term of the contract is free of charge to every client (borrower, guarantor/s, mortgagor/s), and provision of information more than once a month is 3000 ( three thousand) AMD (VAT included) for each client (to the borrower, guarantor/s, mortgagor/s).