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Promotion

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

The campaign term is from May 2, 2018 to June 31, 2018, inclusive

Moving to Converse Bank CJSC of loans for acquisition, renovation and construction of residential and/or non-residential immovable property, other loans secured with pledge of immovable property and credit cards with non-restorable limit, from another bank/credit organization

The conditions defined by the Annex for the campaign apply to all private individual customers, residents and/or citizens of the RA, who will move the loans and credit cards secured with pledge of immovable property that they or their interrelated parties have obtained from other banks or credit organizations; the amount of the new loan/credit card to be issued to the customer may exceed the size of the liability at another bank or financial organization, in case of meeting the requirements defined.

If there are more than one transferred loans and/or such loans have different purposes, or if the amount of the new loan to be issued exceeds the amount of the transferred liability, then, if preferred by the customer, the loans can be combined into one.

Currency AMD USD EURO
Loan for acquisition, renovation, and construction of residential real estate
Maximum maturity
- 180months
For a renovation loan - 120 months
Annual interest rate
- CBFR1+3 percentage points CBFR1+4 percentage points
Loan/collateral ratio  
90% /the basis is the liquid value of the pledged real estate/
Grace period
If, as a result of transfer, the loan maturity is prolonged for a period up to one year, the maturity of the new loan is not longer than 120 months, and the loan/collateral ratio does not exceed 70%, then the loan can be issued with a grace period up to 1 year, during which the customer is given the opportunity to repay only the interest amount accrued to the loan. Upon expiry of the grace period, both the principal and the interest amounts shall be repaid.
Loan for acquisition and construction of non-residential real estate  
Maximum maturity
- 180 months
Annual interest rate
- CBFR1+2.25 percentage points CBFR1+3.5 percentage points
Loan/collateral ratio  
90% /the basis is the liquid value of the pledged real estate/
Grace period If, as a result of transfer, the loan maturity is prolonged for a period up to one year, the maturity of the new loan is not longer than 120 months, and the loan/collateral ratio does not exceed 70%, then the loan can be issued with a grace period up to 1 year, during which the customer is given the opportunity to repay only the interest amount accrued to the loan. Upon expiry of the grace period, both the principal and the interest amounts shall be repaid. 
Loans with pledge of real estate and credit cards with non-revolving limit  
Maximum maturity 84 months
Annual interest rate 15% 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%, depending on the interest rate of a similar outstanding loan disbursed by another bank, the interest rate might vary by +/-1.5 percentage points. 12%, 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/, is approved by the Bank

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

  •  Up to 50% /inclusive/;
  •  50-60% / inclusive/, is approved by the Bank

 

*parents, spouse, children, sister, brother.

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

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.