Processing fee	AMD 5,000 (charged one-time when recording the loan application)
Origination fee	0.5% of loan amount, AMD 50,000 min (charged one-time before disbursement)
Collateral evaluation cost (applied to additionally pledged real estate and renovation loans)		AMD 18,000 - 25,000
Uniform statement		AMD 10,000
Notarization		AMD 20,000
Registration of ownership with RA Cadaster Committee		AMD 45,000
Registration of lien with RA Cadaster Committee		AMD 27,000

Savings account opening rates for borrowers
AMD loans
Per savings account	opening	AMD 0
	annual servicing	AMD 0
FX loans
Per AMD and per FX (corresponding to loan currency) savings account	opening	AMD 0
	annual servicing	AMD 0
Other terms: based on account opening and servicing rates of the Bank

Where the customer already has savings accounts in the above currencies, the new accounts may not be opened, and the terms of the existing accounts will be aligned with the aforementioned.

 Early repayment

The borrower can repay the loan in full or in part ahead of schedule, including through refinancing.
Upon early repayment of the loan in full or in part, the Bank will decrease/refund the total lending cost, the total interest payable under the loan agreement and the origination fee among others on pro rata basis. The processing fee, state duties (notarization, registration of lien, etc.) and collateral evaluation fee are not reducible/refundable.
At the borrower’s choice, the Bank will reduce the amount of monthly installments proportionate to the early repaid amount by keeping the loan maturity unchanged, or will reduce the loan maturity by keeping the amount of monthly installments unchanged.

Penalties and charges

• Upon default of due dates under the Agreement, the Borrower pays the Bank a penalty at 0.13% per day of delay.
  Upon repayment of overdue liabilities, the payments are made in the following sequence: penalty – interest – principal.
• Upon early repayment of the loan, the borrower pays a penalty to the Bank:

- At 0.6% of the early repaid amount, where the early repayment is made in the 1st year of the loan agreement,
- At 0.4% of the early repaid amount, where the early repayment is made in the 2ndt year of the loan agreement,
- At 0.2% of the early repaid amount, where the early repayment is made in the 3rd year of the loan agreement.
No penalty is applied to the early repayment for the remaining period of the loan agreement.

Deliberation time

At least 7 days before the conclusion of the loan agreement, the Bank will submit the Loan Offer and the draft Loan Agreement to you either in person or by mail. The Loan Offer is valid for 7 business days starting from the next day of delivery.

Terms and restrictions

1. PTI ≤ 60%:
   PTI – the ratio of the max monthly principal and interest installments, and loan servicing and insurance fees (if any) based on the schedule to the total net monthly revenues of the borrower/co-borrowers.
2. For loans of AMD 25,000,000 and above or equivalent FX – OTI ≤ (PTI + 10%).
   OTI – the ratio of the max total sum of principal and interest installments, and loan servicing and insurance fee (if any) based on the schedule for the particular loan and all other loans of the borrower/co-borrowers at the date of crediting to the total net monthly revenues of the same parties.
3. Once the loan application is approved, the prepayment for the property is transferred to the special constructor account opened on behalf of HAR SHIN GROUP LLC.
4. The Bank concludes Principal Loan Agreement (PLA) for 240-month period with all borrowers.
5. The PLA loan amount is set at up to “Benchmark price of to-be acquired property plus 20%” and upon the pledge of additional property at “Benchmark price of to-be acquired property plus 20%” plus 80% of market price of additional property.
6. For renovation loans, the borrower undertakes to complete the renovation works in the timing fixed in the agreement, but no later than in 1 year, after which the target use of the loan should be monitored.
7. The apartment owned by the borrower is renovated.
8. The sum of the applicant’s age and the loan maturity should not be above 65 at the date of loan application.
9. The pledger’s age (if other than the borrower) should not be above 70 at the date of application.
10. The pledge of cash under deposit/bond agreements expires at least in 4 years.
11. Upon expiration of the deposit agreement, the latter is deemed extended on the same terms until the full repayment of liabilities that are backed with cash under the particular agreement.
12. The release of cash under deposit/bond agreements can be executed after the revaluation of the real estate, unless the LTV exceeds the maximum ratio.
13. The Bank insures the pledged property at least to the outstanding loan amount with one of the partner insurers, and the Bank acts as a beneficiary.
14. Requirements for credit history

• At the point of consideration of the loan agreement, the borrower/co-borrower should not have credit liabilities (including guarantees) classified overdue and/or stricter than Standard, except when a well-grounded document is disclosed about the repayment of the overdue amounts.
• In 1 year before the loan application, the borrower’s/co-borrower’s
  -  Total delays per loan (both existing and repaid) should not exceed 30 days irrespective of the amount of overdue liabilities and/or total overdue liabilities should not exceed AMD 10,000 or equivalent FX irrespective of the number of overdue days (the terms do not cover the guarantees);
  - Total delays of all loans (both existing and repaid) should not exceed 50 days irrespective of the amount of overdue liabilities and/or total overdue liabilities should not exceed AMD 20,000 or equivalent FX irrespective of the number of overdue days (the terms do not cover the guarantees).

Repayment options

1. Annuity (equal monthly installments) where the principal and the accrued interest are variable.
2. Descending (descending monthly installments), where the principal is fixed and the accrued interests are variable.

Renovation loan can be disbursed with tranches (5 max), and where the loan amount is above AMD 10 M or equivalent FX, the loan is always disbursed with tranches.

Insurance

For acquisition of real estate

• Pledge of acquired real estate (if construction is complete)
• Pledge of right of purchase, in which case the ownership certificate will also be pledged on behalf of the Bank on the latter’s demand in 5 business days at most after the receipt of the same

- if the level of completeness is up to 80%,
- at the Bank’s discretion, if the level of completeness is above 81%

• Pledge of funds transferred by the Buyer to the special constructor account in full or in part, in the presence of an agreement about pledge on behalf of the Bank
• Pledge of additional real estate
• Pledge of cash under deposit/bond agreement(s)
• Presence of co-borrower/guarantor, as required*

For renovation of real estate

• Pledge of real estate under renovation or right of purchase (only if the level of completeness is above 81%) or additional real estate
• Presence of co-borrower/guarantor, as required*

* The Borrower’s family member can be a co-borrower/guarantor, and the terms and conditions set for the Borrower refer to the co-borrowers as well.

Requirements for guarantor

Legal entities and individuals can be guarantors.

The guarantor

• should have proven sustainable revenues and/or immovable property subject of ownership and/or co-ownership and/or movable property subject to state registration
• can have 3 current guarantees max at the point of disbursement, backing third-party liabilities that are not overdue
• should not have non-performing liabilities at the point of disbursement and 30-day and longer overdue liabilities in the recent 12 months

Explanatory information about guarantee

Unless the borrower performs their liabilities, the guarantor has to pay instead of the latter, the guarantor’s credit history will impair as well and the guarantor may lose the own property.

Converse Bank will

• provide the guarantor with the copies of the loan and guarantee agreements and the repayment schedule
• communicate with the guarantor in the manner preferred thereby
• notify about the changes of the agreement terms at least 7 days in advance
• remind about the liability 1 day in advance
• notify the guarantor about the delay of repayment at latest after 1 day

The Guarantor can

• at any time request information from the Bank about the outstanding loan
• get the refund of the sums paid thereby from the borrower and other loss incurred instead of the borrower

Deferment of regular installment

The regular installment can be deferred based on the borrower’s application. The purpose of deferment is to allow “missing” the regular installment in the period of temporary changes in financial flows (vacation, etc.), and the total amount (principal + interest) payable in the particular month is distributed equally over the following months (the monthly servicing fee, if any, is added to the servicing fee amount of the following month).

Restrictions

• The deferment of the regular installment is applied to loans having been serviced for 6 months at least.
• The deferment of the regular installment is not applied in the grace period, and to the restructured loans.
• At the date of application for the deferment of the regular installment, the loan should not have delays longer than 6 days in total, the credit risk should be Standard, the borrower should have no overdue liabilities to the Bank, and the preceding installment should have been made in due time.
• For loans at less than 60-month maturity, the regular installment can be deferred only once through the effective period of the loan.
• For loans at 60-month and longer maturity, the regular installment can be deferred 5 times at most through the effective period of the loan (except for the final 2 years set in the schedule), and can be deferred no often than once in the accounting year.

Interest calculation example

For loans on below terms

Loan amount	USD 20,000
Nominal interest rate	12.94%
Maturity	10 years
Installments	Annuity

The interest amount will make

Monthly installment (principal + interest)	297.91
Total interest	15,749.69
Total installment	35,749.69

The loan interest is calculated based on the nominal interest rate that is applied to the decreasing outstanding amount, and the nominal annual interest rate shows the cost of the loan for you upon your failure to pay the interest and the binding loan origination and servicing fees in due time and amounts.
For calculation of the nominal annual interest click here:

Evaluation of collateral

• The evaluation of the acquired property is not needed, the benchmark price is taken as a basis.
• The real estate under renovation or additionally pledged is subject to evaluation by one of the partner evaluators of the Bank. The customer selects the evaluator. The market/liquid value evaluation report is valid for 2 months from issuance. Additional evaluation may be needed as required (e.g. change of market prices).

List of valuation companies

Communication with the Bank

You can communicate with Converse Bank CJSC either by mail or by email, whichever you prefer. Electronic correspondence is the most convenient, it is 24/7 accessible, is free of any risk of loss of paper-based information and ensures confidentiality.

Issuance of statements, references and other information (including VAT)

• Issuance of statement in periods set under the RA laws and/or the agreement, in the manner preferred by the customer: AMD 0
• Issuance of extra statement for mortgage loans (to be disclosed to the SRC among others) 4 times a year, for the period selected by the customer: AMD 0
• In addition to the aforementioned periods:¹

-  For less than 3 years: AMD 1,000
-  For longer than 3 years: AMD 3,000 (if held with the Bank)

• Statements to be disclosed to various organizations¹

-  For accounts opened in 1 month²: AMD 5,000
-  For accounts opened earlier: AMD 3,000

• Statements based on online application on the Bank’s website: AMD 3,000
• Statements/references

Executed transaction
-  For up to 1 month old: AMD 3,000
-  For longer than 1 month old: AMD 5,000
Reference to agreement on subsequent pledge/sale of assets pledged with the Bank: AMD 6,000 per pledged asset

• Copies of transaction grounds and other documents (per document)
  - For up to 1 month old: AMD 1,800
  - For up to 1 year old: AMD 3,000
   - For longer than 1 year old: AMD 12,000ամ

Other service tariffs (VAT included)

• Post delivery of statements and other documents

In RA and Artsakh: 00
Cross-border
- In cases under the law and the agreement: Delivery service provider’s tariff
- In other cases: Delivery service provider’s tariff + AMD 1,500

• Through outsourced delivery service provider

- In RA and Artsakh: AMD 3,000
- International: Delivery service provider’s tariff + AMD 3,000

• Bank’s consent to registration of a family member at the address of the pledged real estate (irrespective of the number of parties to be registered): AMD 3,000
• Bank’s consent to changes in the ownership documents of the real estate pledged with the Bank³: 0.5%, AMD 12,000 min, AMD 60,000 max
• Permission for renting out the pledged real estate: AMD 12,000
• Partial release of pledged assets (other than cash and metal accounts) at the pledger’s or borrower’s request: AMD 20,000 (per asset)
• Loan restructuring⁴: 0.5%, AMD 12,000 min

¹ For simultaneous issuance of a reference and a statement to the same customer, the charge is applied only to the reference if such charge is set.
² In the presence of several accounts, the date of opening of the earliest account is considered, irrespective of being included in the reference.
³ The tariff is calculated based on the initially estimated value of collateral.
⁴ The tariff is calculated based on the amount of disbursement. The tariffs are charged at the date of the customer’s loan restructuring application.

Required documents

1.	Loan application
2.	ID document, Public Services Number or a reference to the absence of PSN (not required if ID card is disclosed)
3.	Employer’s reference that is valid for 20 calendar days from the date of disclosure to the Bank (the copy of employer’s annual individual report may be required as well) The reference may not be required where the customer has been paid salary through the Bank in 6 months before the date of application.
4.1	For non-entrepreneurial activity (e.g. investment activity, lease of property, investments in deposits, etc.), reference to revenues from that activity
4.2	For businesses:  Reference to revenues from business for legal entities Financial analysis for sole proprietors and individuals
4.3	For sole proprietors, SRS statement on the latter’s liabilities to the state, and for businesses needing licensing or special permit, also the respective license and/or permit if the latter has essential impact on the borrower’s income
5.	Pictures of the property under renovation before the planned renovation and after the disbursement of each tranche
6.	Cost estimate of renovation works
7.	Original copy of ownership certificate and supporting documents for the property to be purchased or renovated, and the additionally pledged property
8.	Real Estate Uniform Statement issued by the RA Cadaster Committee referring to the restrictions on the pledged property (to be filed after the approval of the loan)
9.	Marriage certificates of borrowers/pledgers (if any)
10.	Preliminary evaluation note (to be filed before the approval of the loan)
11.	Evaluation report (to be filed after the approval of the loan)
12.	Proofs of prepayment (if any)
13.	Reference to the absence of property tax and other liabilities of the constructor in the accounting year
14.	Consent to inquiries of borrower, co-borrowers, guarantors and pledgers (to be filed before the approval of the loan)
15.	Constructor’s statement
16.	Other documents as required by the Bank

NOTE

The actual annual interest and the amount of loan installments can vary based on the change of the exchange rate.

Upon default or incomplete performance of obligation by you, your data will be disclosed to the credit bureau in 3 business days, where your credit history is created.  The presence of an adverse credit history may prevent you from getting a loan in the future.  You can get your credit history from the credit bureau free of charge once a year.

Your property can be confiscated in due order unless you make your interest and principal installments in time.

Unless the sum from the sale of collateral suffices for the repayment of your credit liabilities, the latter can be repaid at the expense of your and/or the guarantor’s property in compliance with the RA laws.

For the purpose of the Customer’s due diligence in compliance with the RA Law on Combating Money Laundering and Financing of Terrorism, the Bank can demand additional documents or other information from the consumer and as well ask additional questions to the customer on “Know your customer” principle.

Based on the Foreign Account Tax Compliance Act (FATCA) Agreement concluded with the USA, the Bank can collect additional information to clear out your status of a US taxpayer.

The Bank can revise and amend Tariffs and Rates by giving a notice to the customers in the manner set under the agreement: by posting a message on the Bank’s website (www.conversebank.am), by making the information available in the Bank’s premises, by post delivery and by other methods offered by the Bank and selected by the Customer, which shall be deemed the proper notification of the Customer.

Factors for positive and negative loan decision

The Bank is inclined to issue the loan, where:

• The applicant meets the particular loan terms and restrictions,
• The applicant secures the loan with assets on the Bank’s demand,
• The applicant is qualified creditworthy due to evaluation,
• The applicant has disclosed authentic documents and statements that include the relevant information,
• The applicant’s credit history is positive or missing.

The applicant’s failure to meet any of the aforementioned terms or other requirements under the internal regulations of the Bank can cause the rejection of the loan.

Deadlines of loan decision notification and disbursement

• The decision is made in 10 banking days at most.
• The customer is notified in 1 day.
• The loan agreement is concluded in 3-6 banking days subject to filing of the complete documentation with the Bank.
• The actual disbursement of loan is made once the certificate of lien is received from the government authority.

Place of loan execution and disbursement

The loan is disbursed at the Head Office and branches of the Bank.
The acquisition loan amount is transferred directly to the constructor’s account. The renovation loan is transferred to the borrower’s account.

Your Financial Adviser

“Your Financial Adviser” is an electronic system for search and comparison and selection of the most efficient option of services offered to individuals:
https://www.fininfo.am/compare-payment-card.

Settlement of Disputes

Any dispute between the Customer and the Bank, unless settled through negotiations, is resolved in compliance with the RA laws both judicially and through the 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 M or equivalent FX 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 FX, and the amount of the transaction not surpassing AMD 500,000 (five hundred thousand) or equivalent FX.

Location: 15 M. Khorenatsi, 0010 Yerevan
Floor 7, Elite Plaza business Center
Email [email protected]
Tel. (+37460) 70-11-11
Fax (+37410) 58-24-21

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) 511 211
  Viber՝ +374 95 511 211
  Skype՝ conversebank-callcenter