Restrictions

• The borrower’s business should have state registration for at least 3 months.
• The borrower or the actual beneficiary should not have 24-day and longer overdue or classified credit liabilities (except the guarantees).
• The financial analysis of the customer is not needed.

List of payments made by the Borrower: 

Evaluation of collateral	AMD 18,000 - 360,000 (based on type and total area)
Uniform statement	AMD 10,000
Notarization	AMD 20,000
Registration of lien	AMD 27,000
Insurance of collateral (if required)	0.12 – 0.16% of market value

 Penalties and charges

 The Bank can apply the following penalties and charges.

1. 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
2. The interest rate of the loan is increased by 4 percentage points max for every case of violation of the lending pre-conditions.
3. No penalties and charges are applied to financing of up to AMD 5,000,000/equivalent FX to ultra-small commercial companies and sole proprietors of agricultural significance established under the RA Law on Government Support to Small and Medium Entrepreneurship.
4. In other cases – upon early repayment of the loan until the mid-maturity, an early repayment charge is applied at 5% of the early repaid amount.

Frequency and method of principal and interest installments

One of the below listed

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:
3. Flexible, where the principal installments are made based on the business specifics, and the interests are paid monthly.

Interest calculation example

For loans on below terms

Loan amount	5,000,000 AMD
Nominal interest rate	15%
Maturity	5 years
Installments	Annuity

The interest amount will make

Monthly installment (principal + interest)	118,950
Total interest	2,136,979
Total installment	7,136,979

Loan interest is calculated based on the nominal interest rate applied to the deductible balance, and the actual annual interest rate shows how much the loan will cost you when you make timely interest payments and all the related mandatory fees and payments related to loan disbursement.
The procedure for calculating the annual actual interest rate can be found at :

 

Evaluation of collateral

 

The immovable and movable property offered for pledge 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 evaluators

Insurance of collateral

The Bank can demand the evaluation of collateral based on the purpose of financing, the deal or the specifics of pledged property.
The insurance is executed at the estimated market value for the overall period of financing (unless otherwise decided by the Bank) by one of the partner insurers of the Bank.

List of insurance companies

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 paper-based information and ensures confidentiality.

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

• Provision of single statement (regardless of periodicity): 0,
• For a duplicate¹.

- Covering a period of up to one month- AMD 1,800
- From two 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

• Statement1 for submitting to different institutions

- For accounts opened within a month2 - AMD 5,000
- For accounts opened earlier - AMD 3,000

• Statements/ Letters

For transactions
- transactions carried out up to a month ago, AMD 3,000
- transactions carried out more than a month ago, AMD 5,000
Letter on consent for consecutive pledge/disposal of property pledged at the Bank -AMD 6,000 drams for each item of pledged property

• Transaction support documents and copies of other documents (for each document)

- For a period dating back to 1 month - AMD 1,800
- dating back to 1 year -AMD 3,000
- dating back to more than year - AMD 12,000

Tariffs for other services (including VAT)

• Mail delivery of statements or other documents

Within Armenia and Artsakh - AMD 500

International:

- Tariff set by the shipping 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 shipping

- Within Armenia and Artsakh- AMD 3,000
- International - fee set by the shipment service provider + AMD 3,000

• Provision of Bank consent for registration of individuals at the address of pledged real estate (charged for consent, regardless of number of registered persons) - AMD 3,000
• Provision of Temporary certificate of pledged real estate ownership - AMD 10,000
• Granting consent for modification of documents on real estate property pledged with the Bank³: 0.5%, minimum AMD 12,000 , maximum AMD 60,000
• Granting consent for the lease of pledged real estate property- AMD 12,000
• Grant of consent to change the registration plates of the pledged car - 12,000 AMD
• Granting consent for the lease of pledged vehicle - AMD 8,000
• Partial release of pledged property based on the application of the pledgor or the borrower (except for the pledge of cash as well as unallocated metal accounts) - AMD 20,000 (per property)
• Loan terms revision⁴ - 0.5%, minimum AMD 6,000

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 shall be calculated on the basis of the estimated initial value of the collateral.
⁴ The tariff is calculated based on the amount of loan provided. The tariffs are set at the time of submission of the application by the customer for revision of the loan terms.

Required documents

• Loan application
• Borrower’s consent to inquiries
• Founding documents of legal entities, ID document, Public Services Number or a reference to the absence of PSN (not required if ID card is disclosed)
• Depository statement about shareholders for open joint stock companies
• Ownership certificate and grounds of acquisition for the property offered as a pledge
• Tax statements for the recent 1 year
• Tax liabilities statement
• Ownership certificate or lease agreement of business location, or other ground confirming the customer’s right over the business location (e.g. village administration statement)
• Preliminary and final (after the approval of the Loan) evaluation report or ground for the offered pledge
• Extract from the resolution of the general meeting or sole shareholder resolution about financing, pledge of property and letter of guarantee
• Collateral insurance certificates (if insurance is required, after the approval of the loan)
• Statement on restrictions (after the approval of the loan)
• Other documents, as needed

Attention

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.

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.

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.

If you have requested the loan also and exclusively for refinancing of your credit liabilities to other organizations (banks, credit organizations, etc.), we hereby warn that  you have to repay the outstanding interests, penalties service and other fees to these organizations after refinancing independently, and the Bank declaims the responsibility for the default of the payments.

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 3-5 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 loan amount is transferred directly to the constructor’s account.

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

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

     Updated 11.08.2022 11:00: