Financial lease (leasing) within the framework of cooperation with "GSS Solar" LLC
"Converse Bank" CJSC (hereinafter - the Bank), within the framework of cooperation with "GSS Solar" LLC (hereinafter - the Seller), provides equipment lease financing to RA resident legal entities and private entrepreneurs under the following conditions:
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Amount and lease/collateral ratio |
Minimum - AMD 1,000,000 or equivalent USD No maximum amount is set, but the lease amount cannot exceed 90% of the value specified in the invoice or other relevant document provided by the Seller. |
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Annual nominal interest rates by maturity and currency |
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Currency |
Downpayment |
Term |
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12 - 24 months |
25 - 36 months |
37 - 48 months |
49 - 60 months |
61 - 84 months |
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AMD |
10%* |
Nominal |
11.5% |
12.0% |
12.5% |
13.0% |
13.50 - 15.00% |
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Actual |
12.05 - 12.22% |
12.63 - 12.72% |
13.20 - 13.26% |
13.77 - 13.82% |
14.33 - 16.09% |
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Nominal |
13.00% |
13.50% |
14.00% |
14.50% |
15.00 - 18.00% |
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Actual |
13.72 - 13.91% |
14.31 - 14.41% |
14.88 - 14.96% |
15.46 - 15.52% |
16.04 - 19.58% |
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20% |
Nominal |
12.50% |
13.00% |
13.50% |
14.00% |
14.50 - 17.50% |
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Actual |
13.16 - 13.34% |
13.74 - 13.84% |
14.32 - 14.39% |
14.89 - 14.95% |
15.47 - 18.99% |
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USD |
10%* |
Nominal |
8.0% |
8.5% |
9.0% |
9.5% |
10.00 - 11.50% |
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Actual |
8.25 - 8.36% |
8.80 - 8.86% |
9.35 - 9.39% |
9.90 - 9.93% |
10.45 - 12.14% |
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Nominal |
9.00% |
9.50% |
10.00% |
10.50% |
11.00 - 13.00% |
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Actual |
9.32 - 9.45% |
9.88 - 9.95% |
10.44 - 10.49% |
10.99 - 11.03% |
11.55 - 13.81% |
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20% |
Nominal |
8.50% |
9.00% |
9.50% |
10.00% |
10.50 - 12.50% |
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Actual |
8.79 - 8.91% |
9.34 - 9.40% |
9.89 - 9.94% |
10.44 - 10.48% |
11.00 - 13.25% |
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Order of leasing and interest repayment |
Annuity - equal monthly repayment, with principal and interest accrued in variable portions. |
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Application review fee |
0 |
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Disbursement fee |
0 |
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Service fee |
0 |
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Additional security |
As an additional security, the Bank may also require a guarantee of individuals and/or legal entities, or a pledge of real estate, if the downpayment paid by the customer is up to 20% of the leased property. |
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*Depending on the price offer made by the Seller. |
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List of fees incurred by the customer if additional collateral is required
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Collateral evaluation |
AMD 18,000 – 360,000 (depending on the type and area) |
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Single/unified reference |
AMD 10,000 |
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Notary validation |
AMD 20,000 |
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Registration of the right of pledge |
AMD 27,000 |
Interest on lease is calculated based on the nominal interest rate applied to the deductible balance, and the actual annual interest rate shows how much the lease will cost you provided that you make timely interest payments and all the related mandatory fees and payments related to disbursement of lease amount.
The procedure for calculating the annual actual interest rate can be found at the following link.
Fines and penalties
Following fines and penalties may be applied by the Bank:
1. In case of violation of the repayment terms specified by the agreement, the lessee shall pay a penalty to the Bank in the amount of 0.13 % of the overdue amount for each day of delay.
Repayments of overdue liabilities are repaid in the following order: fine/penalty, interest, principal amount.
2. In case of early repayment of lease before the mid-term of the validity period, a fine is imposed in the amount of 5% of the early repayment amount.
Explanatory notes on the guarantee
If the lessee fails to fulfill his/her liabilities, the guarantor will pay on behalf of the lessee, the guarantor's credit history will deteriorate as well, and the guarantor may be deprived of his/her property.
Converse Bank:
• Provides the guarantor with a copy of leasing and guarantee agreements and a repayment schedule,
• The communication will be carried out through the means chosen by the guarantor,
• Notifies at least 7 days in advance of the change in the terms and conditions of the agreement,
• Sends reminder of existing obligation 1 day in advance,
• In case of delayed repayment of the lease, notifies the guarantor not later than within the following day.
The guarantor has the right to:
• Request the Bank for information on the size of the lease balance, at any time,
• Get a refund of leasing-related payments made, as well as of other losses incurred on behalf of the lessee.
Lease evaluation
- No evaluation of the subject of lease is required, the value specified in the document submitted by the Seller to the Lessee is taken as a basis.
- The pledged real estate is subject to evaluation by any of the evaluation companies cooperating with the Bank. The valuation company is selected by the Customer. The evaluation report of the property's market/realizable value is valid within 3 months from the date of the report. An additional re-evaluation may be required, if necessary (for example, if market prices change).
Evaluating companies
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Evaluating company |
Address |
Telephone numbers |
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"Amintas Group" LLC |
"Tun Depo" complex, 23/6 Artsakh Str., c. Yerevan |
(010) 432 276,(094) 432 276, (096) 432 276 |
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"RVM Consult" LLC
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Tpagrichneri str. 9, room 114, c. Yerevan
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(010) 546 490, (098) 944 449, (077) 944 449, (093) 944 449 |
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"Abit" LLC |
Tumanyan str. 8, room 314, c. Yerevan |
(033) 999 880, (096) 999 888 |
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"VM - RP" LLC |
Vardanants passage 8/3, room 209, c. Yerevan |
(010) 588 797, (043) 588 797 |
Insurance
The insurance of the lease object is carried out by the customer in the amount of the cost of the equipment, for the whole period of financing (unless otherwise stipulated by the Bank's decision), by an insurance company cooperating with the Bank.
The cost of special purpose movable property insurance is set by the price quotation of the insurance company.
List of insurance companies
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Insurance company |
Address |
Telephone numbers |
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"Ingo Armenia" ICJSC |
c. Yerevan, Hanrapetutyan 51, 53, Areas 47, 48, 50 |
(010) 592 121 |
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"REGO" ICJSC |
c. Yerevan, Komitas Avenue 62 |
(060) 275 757, (098) 560 797 |
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“Liga Insurance” ICJSC |
c. Yerevan, Northern Avenue 1 |
(010) 591 010 |
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"Nairi Insurance" LTD |
c. Yerevan, 0033, Avet Avetisyan 116/1 and 116/5 |
(060) 500 060, (010) 543 594 |
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«EFES» ICJSC |
c. Yerevan, 0033, Hr. Kochar 35/1, RA |
(010) 700 800 |
Required documents
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1. |
Application form for lease financing |
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2. |
For a legal entity - founding documents, identification document, Public Service Number or statement on not obtaining PSN (not required if identification card is submitted) |
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3. |
In case of an open joint stock company, a statement from the depositary on the shareholders |
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4. |
Identity document, public service number (PSN) or statement on non-receipt of PSN of the founders, director, guarantors, pledgers and other related persons of the company (not required if an identity card is presented). |
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5. |
Consents to inquiries of the applicant, guarantors, pledgers and other related parties. |
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6. |
Statement on the equipment value provided by the seller to the lessee |
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7. |
Pledge ownership certificate, grounds for registration. |
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8. |
Preliminary valuation letter on collateral /is submitted prior to the lease approval/. |
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9. |
Collateral valuation report /is submitted after the lease is approved/. |
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10. |
Тax reports for the period from January 1 of the previous year to the current period. |
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11. |
Single tax account statement for the abovementioned period |
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12. |
Tax liability statement (electronic). |
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13. |
Cooperation agreements, licenses, permissions (if any) depending on the sphere of activity. |
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14. |
Grounds for the place of activity: lease agreement, ownership certificate. |
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15. |
Financial information: ü cash flows from the beginning of the previous year to the current period of analysis, ü as of the beginning, end of the previous year and current period of analysis: - balance sheet, - detailed information on receivables and payables, - detailed information on fixed assets. |
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16. |
Bank account statements from January 1 of the previous year to the current period of analysis. |
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17. |
Extract from the minutes of the general meeting or the sole participant on obtaining financing, pledging property, providing a guarantee. |
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18. |
Collateral insurance certificates (if insurance required - after lease approval). |
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19. |
Statement on limitations on pledged property (after lease approval). |
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20. |
Other documents required by the Bank. |
Credit history
Credit history is a collection of data on the financial obligations of an individual or legal entity, which shows the history of the latter’s financial obligations or their fulfillment.
The credit history includes data on 5 year-period prior to the date of inquiry, and is made from information on:
• Financing received by the person, including:
- their number and amount,
- the amount, type, terms of each financing, the nominal interest rate applied by the creditor,
- the information on collaterals securing loan/financing.
• Fulfillment of loan repayments (for example, whether the interest and principal amount repayments were duly paid or not),
• Guarantees provided to other persons, their number and amount, the type of loan secured by each guarantee, terms and information regarding collaterals,
• Overdue days/amounts in terms of financing and guarantees, as well as the penalties and fines charged for them,
• Unpaid or late utility bills.
Credit history does not contain personal data, such as a person’s ethnicity, religious and political views, social status, etc.
If there are incorrect or incomplete data in the credit history, for the purpose of clarification and correction, the borrower can inform about it "ACRA Credit Reporting" CJSC, hereinafter also Credit Bureau, or directly contact the financial organizations providing information. People can address credit bureau by submitting an appropriate written application or electronically, online from the personal portal "My ACRA".
The process of accepting/receiving, discussing and responding to customer complaints regarding credit reports provided by the credit bureau, the sequence of actions is defined by the "Procedure for Dispute Resolution" of "ACRA Credit Reporting" CJSC.
For more details follow the links: www.abcfinance.am and www.acra.am links.
Measures to take to improve the credit history and scoring
In order to improve credit history and scoring, it is necessary to eliminate the main causes of their deterioration, in particular, to pay off current overdue obligations as soon as possible, as well as:
• ease the credit burden by partially or fully repaying existing loans,
• make repayments in accordance with the established schedule, excluding delays and showing punctuality,
• reduce the given guarantees by reducing their number and amount, as well as, if available, ensuring the full repayment of overdue obligations,
• avoid even one-day delays in fulfilling obligations on current/existing loans and becoming a guarantor for unreliable persons,
• avoid applying for new loans frequently.
Communication with the Bank
You have the right to communicate with Converse Bank CJSC in any format at your discretion - by postal mail or by electronic communication methods. It is most convenient to receive information electronically, as it is available 24/7, free from the risk of loss of hard copy (paper based) information and ensures confidentiality.
Provision of statements, references and other information (including VAT)
• Provision of single statement (regardless of periodicity) -AMD 0,
• For a duplicate 1.
- Covering a period of up to one month- AMD 1,800
- From 2 months up to 1 year - AMD 3,000
- Up to one year - AMD 12,000
- Up to 3 years (in case it is stored by the Bank) - AMD 24,000
• Statement for submitting to different institutions1
- In case of accounts opened within a month 2 AMD 5,000
- In case of accounts opened earlier - AMD 3,000
• References / Letters
On transactions made
- For transactions dated back up to one month - AMD 3,000
- For transactions dated back more than one month - AMD 5,000
Notice of agreement on consecutive pledge/alienation of property pledged in the Bank - AMD 6,000 for each pledged property
• Transaction support documents and copies of other documents (for each document)
- Dated back up to 1 month - AMD 1,800
- Dated back up to 1 year - AMD 3,000
- Dated back more than one year - AMD 12,000
Tariffs for other services (including VAT)
• Mail delivery of statements or other documents
Intra-republican – AMD 500
International
- Tariff set by the delivery service provider, if established by law and contract.
- In other cases, the fee set by the shipment service provider + AMD 1,500
• Delivery of references or other documents via Ordered mail delivery
- Intra-republican - AMD 3,000
- International - fee set by the shipment service provider + AMD 5,000
• Granting consent for modification of documents on real estate property pledged with the Bank3 - AMD 20,000
• Granting consent for the lease of pledged real estate property- AMD 12,000
• Partial release of pledged property based on the application of the pledgor or the lessee - AMD 20,000 (per property)
1 In case of simultaneous provision of a statement and reference to the same Customer and charge envisaged for the reference, the charge will be collected for reference only.
2 In case of more than one active account, the opening date of account which has been opened earlier is taken into consideration irrespective of whether or not included in the statement.
3 The tariff is applied only for individuals.
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Attention |
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Due to the change in the foreign exchange rate, the actual annual interest rate and the amount of lease repayments may change. If you fail to fulfill or incompletely fulfill your obligation, within three business days this information will be provided to the credit bureau where your credit history is formed. Having a bad credit history can negatively affect your creditworthiness in the future. You have the right to receive your credit history report for free once a year from the credit bureau. |
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Your property may be confiscated by law if you fail to make your interest and lease repayments on time. |
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In case of insufficient funds to repay your lease liabilities, they may be repaid at the expense of your other property and/or that of the guarantor, as prescribed by the RA legislation. |
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In accordance with the RA Law on Combating Money Laundering and Terrorist Financing, on the basis of the Know Your Customer Principle, the Bank may require the Customer to provide additional documents or other information, as well as ask questions during verbal communication, for the purpose of conducting due diligence of the Customer. |
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The Bank may collect additional information in accordance with the terms of an agreement with the US Government under the Foreign Account Tax Compliance Act (FATCA) to determine your eligibility for being a US taxpayer. |
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The Bank is entitled to modify and supplement the tariffs for additional services provided by notifying the Customers in accordance with the agreement, by posting a relevant message on its own website (www.conversebank.am ), by posting announcements on the Bank's premises, by sending a notification by post, and by any other methods proposed by the Bank selected at the Customer's discretion, which is considered a due notification of the Customer. |
Factors affecting the approval or rejection of the lease financing
The Bank is inclined to approve the lease financing, if the applicant:
• Meets the conditions and restrictions of the particular leasing financing,
• Secures his lease obligation with a pledge and guarantee, at the request of the Bank,
• As a result of the assessment the applicant is recognized as creditworthy,
• The documents and references submitted by the applicant are credible and include all necessary information,
• The applicant's credit history is either positive or missing.
The incompliance on the part of the applicant with any of the aforementioned conditions and with the requirements of the Bank’s internal regulations can cause the rejection of the lease financing.
Time span for notifying the customer on the decision to provide the leasing and for the disbursement of lease amount.
• The decision making process takes up to 10 banking days,
• The Customer is informed within one day,
• The leasing agreement is concluded with the customer within 3-5 banking days after submission of the complete package of documents by the Customer,
• The actual disbursement of the leasing to the Customer is performed upon receiving the certificate of lease right (if required –pledge right) from the relevant state authorities.
Venue for lease formalities and method of disbursement
Leasing is provided at Head Office of the Bank and Branches.
The leasing amount is transferred directly to the Seller’s account.
Settlement of disputes
Any disputes and disagreements between the Customer and the Bank shall be resolved first by mutual negotiation, and should the agreement not be reached by such methods, the disputes and disagreements shall be resolved in accordance with the procedure prescribed by the RA legislation both per court procedure, and through Financial System Mediator.
Notice on Financial System Mediator
Please be advised that based on the RA Law on Financial System Mediator, the disputes relating to a property claim for up to AMD 10 million or equivalent foreign exchange amount arising with regard to the services rendered to you by Converse Bank CJSC can be settled through the Financial System Mediator.
Based on the agreement concluded between the Bank and the Financial System Mediator, the Bank abandons the right to dispute the resolutions of the Financial System Mediator only for property claims not surpassing AMD 250,000 (two hundred fifty thousand) or the equivalent foreign currency, and the amount of the transaction not surpassing AMD 500,000 (five hundred thousand) or equivalent foreign currency.
Address: M. Khorenatsi 15, 0010 Yerevan
Business center Elite Plaza, Floor 7
Email: [email protected]
Tel: (+ 37460) 70 11 11
Fax: (+ 37410) 58 24 21
Contact the Bank
For additional information, please
• visit the Bank’s website https://www.conversebank.am
• visit the Customer Service Office at the Head Office or any branch of the Bank
• call +374 10 511211
WhatsApp: +374 95 511211
Skype: conversebank-callcenter
Updated on 14.01.2024