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Promotion

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

The campaign is valid from May 2, 2017 until January 31, 2018 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
16% for the first 3 years, then - 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
16% for the first 3 years, then - 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 17% for the first 3 years, after that CBFR+6%; depending on the interest rate of a similar outstanding loan disbursed by another bank, the interest rate might vary by +/-1.5 percentage points. 13.5%, depending on the interest rate of a similar outstanding loan disbursed by another bank, the interest rate might vary by +1.5 percentage points. 13%, depending on the interest rate of a similar outstanding loan disbursed by another bank, the interest rate might vary by +/-1.5 percentage points.
Loan/collateral ratio  

If the pledged property is located in Yerevan:

  •  Up to 60% /inclusive/
  • 60-70% /inclusive/, if the interest rate is fixed at the highest rate set /for AMD, for the first 3 years (17+1.5)%, after that ((CBFR +6)+1.5)%, for USD (13.5+1.5)%, for Euro (13+1.5)%/.

If the pledged property is located outside Yerevan (in the RA and NKR)

  • Up to 50% /inclusive/
  • 50-60% /inclusive/, if the interest rate is fixed at the highest rate set /for AMD, for the first 3 years (17+1.5)%, after that (CBFR +6)+1.5)%, for USD (13.5+1.5)%, for Euro (13+1.5)%/.

/the liquid value of the pledged property is taken as a basis/

*parents, spouse, children, sister, brother.

1CBFR- Converse Bank flexible rate

General provisions and conditions

 

Procedure of repayment

The loan and interest amounts are repaid monthly, in one of the following manners:

  • "Annuity" (equal monthly installments), which includes the principal amount and accrued interests with alternating portions;
  • "Spring-like" (variable monthly installments), which includes the principal amount in equal portions, and the accrued interest - in variable portions.

Collateral
Pledge of immovable property

 

Additional collateral
Guarantee of private individuals and/or legal entities acceptable for the Bank might be required as additional collateral.

Requirements towards customers

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

  • has serviced the transferred liability at another financial institution for at least 18 months in case of acquisition, renovation, and construction of residential and non-residential real estate, and for at least 9 months in case of loans secured with real estate as collateral and non-revolving credit cards, and has no outstanding liability;
  • over the last 24 months has not had delays in loan repayment for cumulative 20 and more days and/or classified liability /this does not apply to guarantees/*

*if the transferred liability was disbursed by another financial institution in the name of the interrelated person referred to in clause 3 of this Decision, then this requirement applies towards the latter as well.

Creditworthiness

The maximum amount of monthly installments for the principal loan amount and the accrued interest cannot exceed 60% of the net monthly income earned by the Borrower and other members running common household with the Borrower and co-borrower/s/, if any.

This requirement does not apply to loans disbursed for an amount up to AMD 25 mln/its equivalent in foreign currency, provided that the loan/collateral ratio does not exceed 70% and to credit cards provided for an amount up to AMD 15 mln/its equivalent in foreign currency.

The transferred liability shall not be restructured at the other financial organization.

Penalty for early repayment of the loan

In case if the Loan is fully repaid during the first 3 calendar years, the Borrower shall pay to the Bank a penalty for early repayment of the loan, in the amount of 3% (three percent) of the initial Loan amount, unless another rate is agreed between the Parties as penalty for early repayment of the loan.
This provision does not apply to loan that meet the requirements of the RA Law “On Consumer Lending” fore loans/credit cards.

Other fees

  1. No fee is charged for review of the loan application
  2. Loan disbursement and encashment fee - is not charged
  3. Fee for registration at the relevant state body - is paid by the customer
  4. Fee for the common reference issued by the State Committee of Real Estate Cadaster adjunct to the RA Government - is paid by the customer
  5. Monthly service fee for the loan/credit card - AMD 2,000.00

*in case if the loan or credit card account is above AMD 50 mln or its equivalent in foreign currency, final evaluation is required, the cost of which is paid 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