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Promotion

Promotion for disbursement of loans secured with pledge of real estate and provision of credit cards

The promotion term is May 2, 2017 to July 31, 2017, inclusive.

Moving to Converse Bank CJSC the loans for acquisition, renovation, or construction of residential and/or non-residential real estate existing at another bank/credit organization, as well as other loans secured with pledge of real estate and credit cards with non-revolving limit

The conditions of the promotion apply to all private individuals - residents and/or citizens of the RA, who will move to the Bank loans secured with pledge of real estate and credit cards that they and/or their interrelated parties* have obtained from other banks or financial organizations. The amount of the new loan/credit card to be disbursed/provided might exceed the amount of the liability existing at another bank or financial organization, provided that the requirements defined by the Bank’s Annex are met.

Conditions of disbursement of loans secured with pledge of real estate and credit cards with non-revolving limit:

Currency AMD USD EURO
Loan for acquisition, renovation, and construction of residential real estate
Maximum maturity
120 months 240 months
For a renovation loan - 120 months
Annual interest rate
For the first 3 years - 16%, after that - CBFR1+5 percentage points CBFR1+3 percentage points CBFR1+4.5 percentage points
Loan/collateral ratio  
90% /the basis is the liquid value of the pledged real estate/
Loan for acquisition and construction of non-residential real estate  
Maximum maturity
84 months 180 months
Annual interest rate
For the first 3 years - 16%, after that - CBFR1+6 percentage points CBFR1+5 percentage points CBFR1+6 percentage points
Loan/collateral ratio  
90% /the basis is the liquid value of the pledged real estate/
Loans with pledge of real estate and credit cards with non-revolving limit  
Maximum maturity 84 months
Annual interest rate For the first 3 years - 17%, after that - CBFR1+6 percentage points 13.5% 13%
Loan/collateral ratio  
  • 60 %, if the pledged property is in Yerevan
  • 50% if the pledged property is outside Yerevan
/the basis is the liquid value of the pledged real estate/

 

*parents, spouse, children, sister, brother.

1CBFR- Converse Bank flexible rate

General provisions and conditions

Repayment procedure

Annuity (equal monthly instalments), which includes the principal amount and accrued interests with alternating portions.

Spring-like (variable monthly repayment), where repayment of the principal amount is made in equal portions, and the accrued interest - in variable portions.

Security

Pledge of real estate

Additional security

As additional security, a guarantee of private individuals and/or legal entities acceptable for the Bank can also be required.

Requirements to customers

RA resident and/or citizen private individual, who, at the time of loan disbursement:

  • the liability to be moved to the Bank was serviced at another financial organization for at least 24 months in case of loans for acquisition, renovation, and construction of residential and non-residential real estate, and for 12 months in case of loans secured with pledge of real estate and credit cards with non-revolving limit;
  • doesn’t have any current overdue liability;
  • didn’t have total 30 and more days of delay in repayment of loans and/or classified liabilities over the last 24 months /this doesn’t apply to guarantees/*

*if the liability to be moved to the Bank was disbursed by another financial organization in the name of an interrelated party defined by clause 3 of this Decision, then this requirement shall apply also towards the latter.

Creditworthiness

The maximum size of monthly instalments for the principal amount of the loan and the accrued interest cannot exceed 60% of the net monthly income received by the Borrower and other persons running the same household with the Borrower, and co-borrower/s/, if any.

This requirement doesn’t apply to loans disbursed for an amount up to AMD 25 million/its equivalent in foreign currency, if the ratio of the loan to be disbursed to the collateral isn’t above 70%, and to credit cards provided for an amount up to AMD 15 million/its equivalent in foreign currency.

The liability to be moved to the Bank shall not be restructured at another financial organization.

Penalty for early repayment of the loan

If the Loan is fully repaid during the first 3 calendar years, then the Borrower pays penalty to the Bank for early repayment, equivalent to 3% (three percent) of the initial Loan amount, unless some other size of early repayment penalty has been agreed between the Parties.

This clause doesn’t apply to loans/credit cards compliant with the requirements of the RA Law "On Consumer Lending".

Other payments

  1. No fee is charged for review of the loan application
  2. No commission fee is charged for disbursement of the loan and encashment of it
  3. Payment for registration at an authorized state body - is made by the customer
  4. Payment for the reference provided by the State Committee of the Real Estate Cadaster adjoined to the RA Government- is made by the customer
  5. Monthly service fee for the loan/credit card - AMD 2,000.00

*if the amount of the loan or credit card is above AMD 50 mln or its equivalent in foreign currency, final evaluation is required, the payment for which is made by the customer.

The Bank offers its customers who get loans within the framework of the promotion one settlement card ArCa Classic, without a grace period, with revolving limit, on the following condition:

Credit limit
  • if the Bank disburses a loan for an amount up to AMD 5 mln/ its equivalent in foreign currency, inclusive - with credit limit of AMD 500,000;
  • if the Bank disburses a loan for an amount above AMD 5 mln/ its equivalent in foreign currency - with credit limit of AMD 1,000,000
Maturity of the credit limit 1 years
Settlement cards service fee 0

 

Other conditions

 

  • The customer may apply for the settlement card during the period of the Promotion;
  • The funds paid for the purpose of early repayment of a loan secured with collateral are first of all directed for repayment of the liabilities related to the settlement, card and the collateral item that secures repayment of the loan/credit card remains pledged with the Bank until complete fulfilment of the credit liabilities assumed for the settlement card;
  • Settlement cards can be used only for the purpose of making purchases via the Bank’s POS-terminals located at sales points of Elmarket LLC, Aray LLC, Es Kahuyq LLC , Coala LLC, 1+1 LLC, Angels Home LLC, Gugart Kahuyq LLC