Small & Medium Enterprise Loans (SME)

1. 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. In the case of "SMALL AND MEDIUM ENTERPRISE (SME) Credits," if the obligations under the credit agreement are repaid early, additional fees may apply.

2. The credit interests shall be calculated based on the nominal interest rate. The credit interest is calculated on the actual balance of the credit.

3. The credit is provided to the Client within 1 business day after the contract is signed. In cases of "SMALL AND MEDIUM ENTERPRISE (SME) Credit," after the state registration of the Organization's collateral rights, within a maximum of 5 business days. To receive the credit, the Client submits a document certifying statement/reference containing his/her/its bank number.

4. 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 email.

5. 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.

6. The Organization sends the information about the Client to the Credit Bureau within 3 (three) working days, and the current information about the loan is regularly updated during the entire term of the loan. The Client’s credit history is formed in the Credit Bureau based on the data received from all lending financial organizations. The Client has the right to receive his/her credit history from the Credit Bureau once a year, free of charge.  A bad credit history can prevent the Client from getting a loan in the future. In order to avoid deterioration of the credit history or score, the client needs to make payments according to the schedule defined by the contract and exclude the existence of overdue liabilities on existing loans. Information about credit history is presented on the www.absfinance.am and www.acra.am websites.

7. For credit evaluation, the Organization uses an income and expense evaluation system and/or an internal 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. Information on the formation of the FICO score is presented on the website. The application of the above factors may vary by credit type.

In order to improve creditworthiness, the client should pay attention to improving the listed factors and avoid the emergence of the factors mentioned in point 12.

8. Factors that have a positive impact on loan disbursement:

• presence of income
• satisfactory credit rating
• absence of overdue credit liabilities.

9. Factors that have a 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 organizations
• 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.

10. The borrower has the right to communicate with the Organization through their preferred method: by email or postal mail. Receiving information electronically is the most convenient option—it is available 24/7, avoids the risk of document loss, and ensures confidentiality.

11. Disputes between the parties can be resolved through the courts, arbitration tribunals operating in the Republic of Armenia, or through the Financial System Mediator (under the “Law of the Republic of Armenia on the Financial System Mediator”) for loan obligations not exceeding AMD 10,000,000 or its equivalent in foreign currency. Address: 7th Floor, Elite Plaza Business Center, 15 Khorenatsi Street, Yerevan 0010. Email: info@fsm.am | Tel: (+37460) 70-11-11 | Fax: (+37410) 582421. Note: “AREGAK” UCO CJSC has not waived its right to dispute decisions made against it by the Financial System Mediator in court. This means that “AREGAK” UCO CJSC may, in certain cases, challenge decisions made by the Mediator.

12. Under the RA Law on Combating Money Laundering and Terrorism Financing, the Organization may, under the “Know Your Customer” principle, request additional documents or information for proper customer due diligence.

13. The following fees apply to the provision of additional information (statements, certificates, etc.) on loan obligations:

• For repaid loans: one-time free provision within 30 days after full repayment; AMD 5,000 (including VAT) for requests submitted after 31 or more days.

• For active loans: one free provision per month during the agreement term for each borrower, guarantor(s), or pledgor(s); AMD 3,000 (including VAT) for each additional request per month.

NOTICE  

1. 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 IN ANNEXURE 2.
2. IN CASE THE BORROWER FAILS TO REPAY THE CREDIT AMOUNT AND INTERESTS IN A PROPER AND TIMELY MANNER, NEGATIVE INFORMATION ON HIM/HER WILL BE RECORDED IN THE CREDIT REGISTRY.
3. 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 THE 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 THE CLIENT’S OBLIGATIONS FULLY, THE LATTER CAN BE REPAID THROUGH THE FORECLOSURE  OF OTHER PROPERTY OF THE CLIENT.
4. 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 DETERIORATE AND THE GUARANTOR MAY BE DEPRIVED OF HIS/HER PROPERTY.