"Pledge" consumer credits
Monthly fee֏ - ֏
Credit Interest18.5 % - 20.5 %
1. Targeted geography
2. Target market
Resident persons registered in the RA
3. Credit amount
1 000 000-15 000 000 AMD- in case of the real estate located in Yerevan*
1 000 000 -5 000 000 AMD- in case of the real estate located in other regions**but no more than the 50% of the pledge’s liquidation value
4. Credit Currency and the Type of one time Disbursement
5. Credit Terms
6. Credit Interest
In case of documented income
In case of other income
|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.) and in case of having at least three-month working experience in the mentioned organization||
(other income not considered as documented)
|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|
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, it is calculated including income and liabilities of the family members sharing the same household
FICO≥ 600 or N/A
|8.Credit/Pledge ratio||up to 50% of the property’s estimated liquidation value|
|9. Credit disbursement fee||
calculated on the disbursed amount and charged at disbursement time
10. Monthly service fee
11. Principal and Interest payments1
Other pledge and/or guarantor/s based on the results of credit analysis.
|13. Requirements on the pledged property||
The pledged real estate shall
1. have a stone, panel, or reinforced concrete structure (except for partitions and mezzanines)
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 house6. in case of house, the real estate to be pledged shall be pledged fully
14. 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.
|15. Decision making term of the credit||
5 working days(after submitting all required documents)
|16. Decision validity term of the credit||15 working days|
|17.Credit disbursement term||2 working days after receiving the document proving the right of pledge on the pledged property|
|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)
The evaluating companies cooperationg with the Organization are
"1. If the repayment day is a non-working day then the repayment day is considered the next working day following the non-working day."
In case if 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 Bureau.
The Pledged property can be confiscated by the order defined by Law, if the Borrower does not repay the credit and interest amounts in a proper and timely manner.
The Annual Actual Interest specifies the extent of the credit amount in case of repaying interests and other fees in a timely and proper manner. The calculation order of the Annual Actual Interest is presented below:
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:
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.
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
- 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
- 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
The credit disbursement may be refused because of:
- the false documents,
- the required documents have not been submitted,
- negative information from the Credit Registry and/or other specialized organization,
- absence of required security for credit repayment
- other reasons.