Amount			AMD 1,000,000 - 50,000,000 or equivalent FX
Maturity			6 - 60 months
Annual interest rate by currencies	AMD	Nominal	from 15% for the 1st year 1, thereafter (CBFR1 + 3.70)%
		Actual2	16.65 - 24%
	USD	Nominal	from 12% for the 1st year 1, thereafter (CBFR1 + 7.40)%
		Actual	13.23 - 24%
	EUR	Nominal	from 10% for the 1st year 1, thereafter (CBFR1 + 7.70)%
		Actual	11 - 24%
One-time fee for disbursement			1% of the loan amount, AMD 30,000 min
Application review fee			AMD 0
Security			Only real estate
LTV			up to 60% of estimated liquidation value of collateral in Yerevan 50% of estimated liquidation value of collateral in the regions
The interest rates will be decreased by 1 percentage point for borrowers having received SME financing by the Bank.

¹FR- Floating Rate is set twice a year by the Bank on the basis of the primary indicators, and in the event of unavailability of the latter - based on secondary indicators. In case of change, the interest rate of the existing agreements changes no sooner than 7 days after the borrower is notified or according to the procedure established by the agreement (depending on the legal status of the borrower).
 Key indicators:
- In case of AMD, the yield curve of 180-day government bonds of the Republic of Armenia, published by the Central Bank of Armenia at https://www.cba.am/am/SitePages/fmofinancialmarkets.aspx.
- In the case of USD, 6-month secured overnight fund rate in USD (CME Term SOFR 6 Month), which is published on the following link: Term SOFR - CME Group (either by the Bloomberg system: TSFR6M, or by the Reuters system: SR6M),
- In the case of EUR, the 6-month EUROBOR benchmarks, published on the following link: 6 months Euribor rate (euribor-rates.eu) (by either Bloomberg system: EUR006M, or Reuters system: EURIBOR6MD).
 Secondary indicators.
- In the case of AMD, the weighted average interest rate of AMD deposits with a maturity of 91 - 180 days attracted from legal and individual persons by RA commercial banks as of the last available month,
- In the case of US dollars, the 6-month maturity yield of the US Treasury bond yield curve,
- In the case of the Euro, the 6-month interest rate of the German Euro bond yield curve.
In case of transition from the key to the secondary indicator, the surcharge in the calculation of the financing rate is adjusted/clarified by the average of the differences in the interest rates of the key and secondary indicators over the last 3 years.
Provided that the key and secondary indicators become unavailable or their application becomes impossible, the last published indicator of the floating interest rate is taken as the basis for the next period and is fixed for the entire period of the loan, unless otherwise agreed between the Bank and the customer.
The specified Floating Rates are published on the Bank's official website at https://conversebank.am/hy/kbht/and are available at the Bank's premises.
The Bank may change the floating interest rate of this loan not more than twice a year. Floating rates are rounded in favor of borrowers up to one decimal.
The FR values as of the date of Termsheet (Information summary) update is set as: AMD – 11.3%, USD – 4.6%, Euro - 2.3%.
²The actual annual interest rate, in addition to the fees specified by the Bank, includes other fees required for obtaining the loan: collateral valuation, single statement, notary charges and pledge registration fees.

• 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

Fines and Penalties

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 fines and penalties are charged to financing of up to AMD 5,000,000/equivalent foreign currency 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. Spring (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.

Example of interest rate calculation
• In case of loans with the following terms and conditions:

Loan amount	AMD 5,000,000
Nominal interest rate	14.5%
Repayment period/maturity	5 years
Repayment type	Annuity

 The interest amount will make

Monthly repayment (principal amount+ interest)	118,950
Total interest	2,136,979
Total of repayments	7,136,979

Interest on loan 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 provided that you make timely interest payments and all the related mandatory fees and payments related to disbursement of loan amount.
The procedure for calculating the annual actual interest rate can be found at the following address:

Collateral evaluation
The immovable and movable property to be pledged is subject to evaluation by one of the evaluation companies cooperating with the Bank. The evaluation company is selected by the Customer. The evaluation report is usually valid within 2 (two) months from the date of the report. An additional re-evaluation may be required if necessary (for example, if market prices change).

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

1.	Application form for loan financing
2.	Consents for making ACRA inquiries
3.	For a legal entity - founding documents, identification document, Public Service Number or statement on not obtaining PSN  (not required if identification card is submitted)
4.	In case of an open joint stock company, a statement from the depositary on the shareholders
5.	The original certificate of ownership of the pledged property, grounds for acquisition
6.	Тax reports for the past one year
7.	Statement on tax liabilities
8.	Ownership Certificate or Loan Agreement for the place of activity, or other evidence of entitlement to the customer's place of business (for example, reference from the local administration)
9.	Initial and basic collateral valuation (revaluation) report (after loan approval) or a basis for determining the value of the proposed collateral
10.	Extract from the resolution on minutes of general meeting or sole participant on financing, pledging of property, guarantee
11.	Collateral insurance certificates (if insurance required - after loan approval)
12.	Statement on limitations (after loan approval)
13.	Other documents required by the Bank.

 Credit history

Credit history is a collection of data on the financial obligations of an individual or legal entity, which shows the history of the latter’s financial obligations or their fulfillment.
The credit history includes data on 5 year-period prior to the date of inquiry, and is made from information on:

• Financing received by the person, including:

- their number and amount,
- the amount, type, terms of each financing, the nominal interest rate applied by the creditor,
- the information on collaterals securing loan/financing.

• Fulfillment of loan repayments (for example, whether the interest and principal amount repayments were duly paid or not),
• Guarantees provided to other persons, their number and amount, the type of loan secured by each guarantee, terms and information regarding collaterals,
• Overdue days/amounts in terms of financing and guarantees, as well as the penalties and fines charged for them,
• Unpaid or late utility bills.

Credit history does not contain personal data, such as a person’s ethnicity, religious and political views, social status, etc.

If there are incorrect or incomplete data in the credit history, for the purpose of clarification and correction, the borrower can inform about it "ACRA Credit Reporting" CJSC, hereinafter also Credit Bureau, or directly contact the financial organizations providing information. People can address credit bureau by submitting an appropriate written application or electronically, online from the personal office "My ACRA".
The process of accepting/receiving, discussing and responding to customer complaints regarding credit reports provided by the credit bureau, the sequence of actions is defined by the "Procedure for Dispute Resolution" of "ACRA Credit Reporting" CJSC.

For more details follow the links: www.abcfinance.am and www.acra.am․

Measures to take to improve the credit history and scoring

In order to improve credit history and scoring, it is necessary to eliminate the main causes of their deterioration, in particular, to pay off current overdue obligations as soon as possible, as well as:

• ease the credit burden by partially or fully repaying existing loans,
• make repayments in accordance with the established schedule, excluding delays and showing punctuality,
• reduce the given guarantees by reducing their number and amount, as well as, if available, ensuring the full repayment of overdue obligations,
• avoid even one-day delays in fulfilling obligations on current loans and not to become a guarantor for unreliable persons,
• avoid applying for new loans frequently.

Attention

Due to the change in the foreign exchange rate, the actual annual interest rate and the amount of loan repayments may change.   If you fail to fulfill or incompletely fulfill your obligation, within three business days this information will be provided to the credit bureau where your credit history is formed. Having a bad credit history can negatively affect your creditworthiness in the future. You have the right to receive your credit history report for free once a year from the credit bureau.

Your property may be confiscated by law if you fail to make your interest and loan repayments on time.

In case of insufficient funds to repay your loan liabilities, they may be repaid at the expense of your other property and/or that of the guarantor, as prescribed by the RA legislation.

In accordance with the RA Law on Combating Money Laundering and Terrorist Financing, on the basis of the Know Your Customer Principle, the Bank may require the Customer to provide additional documents or other information, as well as ask questions during verbal communication, for the purpose of conducting due diligence of the Customer.

The Bank may collect additional information in accordance with the terms of an agreement with the US Government under the Foreign Account Tax Compliance Act (FATCA) to determine your eligibility for being a US taxpayer.

The Bank is entitled to modify and supplement the tariffs for additional services provided by notifying the Customers in accordance with the agreement, by posting a relevant message on its own website (www.conversebank.am), by posting announcements on the Bank's premises, by sending a notification by post, and by any other methods proposed by the Bank selected at the Customer's discretion, which is considered a due notification of the Customer. If you have applied for 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
• WhatsApp: +374 95 511211
• Skype: conversebank-callcenter