Following fines and penalties may be applied by the Bank

1. In case of overdue loan and / or overdue interest, 0.13% of overdue amount for each day of delay.
   Repayments of overdue liabilities are repaid in the following order: fine/penalty, interest, principal amount.
   
2. In case of violation of any of the conditions for loan disbursement, increase the effective interest rate of the loan by 4 percentage points.
   
3. Early repayment fines and penalties shall not apply to financing in the amount of up to AMD 5.000.000 / equivalent in foreign currency, inclusively, for financing provided to micro commercial organizations and sole proprietors as defined by the RA Law on State Support to Small and Medium Entrepreneurship.
   
4. In the other cases, when early repayment of the loan is made prior to the mid-validity period, a penalty of 5% is imposed on the early repaid amount.

Frequency and method of repayment of principal and interest

It can be done in one of the following ways:

1. Annuity (equal monthly repayment), in which the principal amount and accrued interest are included
2. Spring (decreasing monthly repayment), in which the principal amount repayment is fixed and the accumulated interest is variable.
3. Flexible , in which the principal amount of the loan is repaid based on the specifics of the activity, and the interest payments are made on monthly basis.

Collateral

Movable and immovable property, pledging of tangible and intangible property not prohibited by the legislation of the Republic of Armenia, and if necessary, a guarantee.
In the case of a start-up business, a real estate mortgage is considered as a collateral, whereby the loan amount cannot exceed 50% of the realisable value of the pledged property.

Loan / collateral ratio

Up to 70% of the estimated realisable value of the collateral depending on the type of pledged property.
In case of gold times used as collateral, financing is extended up to 100% of the appraised value.

Requirements to the Guarantor

Guarantor:

• Must have a stable proven income or ownership/co-ownership for immovable and/or movable property,
• At the time of loan disbursement may have a maximum of 3 current guarantees against liabilities of other persons whose liabilities are not overdue;
• should not have problem loans at the time of loan disbursement, nor overdue liabilities of 30 days or more during the last 12 months;

Explanatory information on the guarantee

If the borrower fails to fulfill his/her obligations, the guarantor will pay on behalf of the borrower, the guarantor's credit history will deteriorate as well, and the guarantor may be deprived of his/her property.

Converse Bank:

• Will provide the guarantor with an example of loan and guarantee agreements and a repayment schedule,
• The communication will be carried out in the manner chosen by the guarantor,
• notify at least 7 days in advance of the change in the terms of the contract,
• Will send reminder of existing obligation 1 day in advance
• In case of delayed repayment of the loan, will notify the guarantor not later than within the following day.

The guarantor has the right to:

• At any time request the Bank for information on the size of the loan balance,
• get a refund of loan-related payments made, as well as of other losses incurred on behalf of the borrower.

Example of calculating interest rates

In case of loan with the following terms and conditions:

 Interest composition

 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.

Valuation of collateral

The pledged real estate and movable property is subject to appraisal 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 (eg price changes).
In case of gold pledge the valuation is performed by a Bank employee.
In case of purchase of vehicles, construction and agricultural equipment and other equipment from the primary market, the amount specified in the purchase contract or invoice may be taken as a basis for the estimated market value.

List of valuation companies

Pledged property insurance

The Bank may require collateral insurance based on the purpose of the financing, the transaction or the description of the pledged property.
Casco insurance is applied in case of pledge of motor vehicles.
Insurance is carried out at the estimated market value for the entire financing period (unless otherwise provided by the Bank decision) by the insurance company cooperating with 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 duplicate ¹.
  

- Dated back up to 1 month - AMD 1,800
- Dated back from 2 months up to 1 year - AMD 3,000
- Dated back from 1 year up to 3 years - AMD 12,000
- Dated back to 3 years and more (in case it is available in the bank ) - AMD 24,000

• Statement¹ for submitting to different institutions

- In case of accounts opened within a month 2 AMD 5,000
- In case of accounts opened earlier - AMD 3,000

• Statements/ Letters

On transactions made
- For transactions dated back up to one month - AMD 3,000
- For transactions dated back more than one month - AMD 5,000
Notice of agreement on consecutive pledge/alienation of property pledged in the Bank - AMD 6,000 for each pledged property

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

- Dated back up to 1 month - AMD 1,800
- Dated back up to 1 year - AMD 3,000
- Dated back more than one 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 (regardless of number of registered persons) - AMD 3,000
• 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 - AMD12,000
• 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.

List of required documents

• Loan Application Form
• ACRA inquiry, guarantee consents
• Identification document of applicant individual entrepreneur, executive body of legal entity, authorized person, participant, real beneficiary, pledgor, guarantor (for a legal entity - founding documents), Public Service number or statement on not obtaining PSN (not required if identity card is submitted)
• Charter, state registration certificate with all inserts, and Taxpayer Identification Number
• In case of a joint stock company, a statement from the depositary on the shareholders
• Document evidencing the right of ownership of the assets offered as collateral and basis of acquisition
• Tax reports of the last 1 year (if available)
• Statement on tax liabilities
• Ownership Certificate or Lease Contract for the place of operation, or other evidence of entitlement to the customer's place of business (e.g., statement from the village administration)
• Initial and basic collateral valuation (revaluation) report (after loan approval) report or a basis for determining the value of the proposed collateral
• Extract from the resolution on minutes of general meeting or sole participant on financing, pledging of property, guarantee
• Collateral insurance certificates (for insurance claim - after loan approval)
• Statement on limitations (after loan approval)
• Other documents as needed

Factors for positive or negative decision on providing the loan

The Bank is inclined to provide the loan if:

• The applicant complies with the terms and limiting conditions of the loan,
• At the request of the bank, the applicant secures its credit liabilities with collateral,
• The applicant is recognized as creditworthy as a result of the assessment,
• The documents submitted by the applicant are reliable and include all necessary information;
• The applicant's credit history is either positive or missing.

Failure to comply with any of the above conditions, as well as other requirements of the Bank's internal regulations, may result in refusal to provide the loan.

Time periods for notifying the customer of the decision to provide the loan and for the loan disbursement.

The decision takes up to 10 banking days, the Customer is informed within one day, the loan is disbursed within 10 banking days.

Venue for loan formalities and method of disbursement

Loan is provided at Head Office and Branches
The loan amount is disbursed to the borrower by way of depositing it to the borrower's bank account.

Procedure for resolving disputes

Any disputes and disagreements between the Customer and the Bank shall be resolved first by mutual negotiation, and should the agreement not be reached by such methods, the disputes and disagreements shall be resolved in court order, in accordance with the procedure prescribed by the RA legislation.

Contact with the Bank

For more details and more information you can:

• visit the Bank's website at https://www.conversebank.am
• visit the Bank's Customer Service at the Head Office or any branch
• Call: 374 10 511211
• Viber: 374 95 511211
• Skype: conversebank-callcenter