| Terms and conditions for Pawn loans servicing (loans secured by jewelry) |
| Loan amount | 30 000 - 10 000 000 AMD |
| Loan term | 1-12 months |
| Loan currency | AMD |
| Crediting fees | Additional lump-sum fee for servicing the account (is charged during the loan provision) - 2400 AMD - in case of a loan with a tenor of 6 months
- 4800 AMD - in case of a loan with a tenor of 12 months
|
| Annual interest rate | 26%
Irrespective of the tariffs stipulated by the Bank the interest rate of a loan (borrowing) can’t be more than the double of the banking rate stipulated by the CBA. |
| Interest estimation | calculated based on 365-day per annum on the balance of the principle loan amount |
ATTENTION: Loan interests are calculated based on the nominal interest rate.
The annual interest shows how much the loan will cost if you realize the payments for all the interests and other fees within stipulated terms and quantity. You can find the annual interest calculation policy in the Annual interest calculation guideline. |
| Borrower’s description | Armenian resident and nonresident natural persons |
| Purpose of the loan | Consumption purposes |
| Criteria for a positive loan provision decision | Positive or neutral credit history |
| Criteria for a negative loan provision decision | - untrustworthy information provided by the customer
- negative credit history
|
| Pledge | - gold items (jewelry, gold bars and bullions)
- diamonds
The maximum loan/pledge value correlation ratio is 90%. |
| Property Insurance | Not required |
| Allocation Mode | Cash or non cash (through the Customer’s Bank account) |
| Repayment mode | Monthly equal payments (interests) by paying off the principle amount at the end of the period |
| Prepayment penalty | None |
| Transaction Time | 5 – 15 minutes (including pledge assessment, documentation and loan provision) |
| Repayment of overdue debts | Starting from the default day 0.4 percent of the unpaid amount will be calculated for each overdue day as a penalty.
Introduction: In the case of not repaying the loan interest and the principal amount on time the pledged property may be confiscated and the information about the borrower will be entered in the loan registry. If the borrower does not perform his obligations and repays his debts with the pledge which is not sufficient there is a possibility of repaying the debts through additional property. |
| Branches where the service is provided | Loans are provided only in Vanadzor, Armavir, Hrazdan, Gyumri and Shengavit Branches |
| Necessary documents | · Copy of passport
· Copy of social card |
| The Bank provides the following service | · the jeweler being a bank employee assesses the golden items presented by the customer as a collateral and estimates the loan amount, which shall comprise up to 90% of the assessed collateral value,
· diamonds are estimated by an expert, moreover the evaluated value for a 0.01 carat diamond is estimated 750 to 2750 AMD (which strongly depends on the quality and size of the rock), and the loan provided for it is 675 to 2450 AMD
· if the customer agrees to receive loan in the offered amount, the Bank starts to officially formulate the loan |
| Annual effective rate calculation example | Loan amount - 200 000 AMD
Interest rate – 26%
Term – 12 months
Commission fee – 4800 AMD
Annual effective rate will be 32.91%
(the calculation method is introduced in the guidebook)
Monthly effective rate will be 2.40% |
| Loan amount against the provided collateral |
| Gold Carat | Collateral estimated price per gram (AMD) | Provided loan amount (AMD) |
| 999 | 10,400 AMD | 9,400 AMD |
| 958 | 10,000 AMD | 9,000 AMD |
| 900 | 9,500 AMD | 8,500 AMD |
| 875 | 9,100 AMD | 8,200 AMD |
| 840 | 8,700 AMD | 7,800 AMD |
| 750 | 7,800 AMD | 7,000 AMD |
| 583 | 6,100 AMD | 5,500 AMD |
| 375 | 3,900 AMD | 3,500 AMD |
| These tariffs can be amended by the Bank about which the information shall be provided to the customers in advance via publishing of such amendments in the website of the Bank and/or other mass media, posting it within the area of the Bank visible for the customers, as well as informing the customers in other ways stipulated in the corresponding agreements. |
