Real Estate Collateral Credit Line

• ATTENTION: LOAN INTEREST RATE MAY BE CHANGED BY THE BANK: 
  In case the Customer does not agree to the interest rate change he/she is entitled to untimely and unilaterally terminate the Contract thus fully repaying the loan principal amount and paying the calculated interest rates and making other payments. Regardless of the tariff rate stated by the Bank the interest rate of the loan (borrowing) cannot exceed double refinancing rate defined by the Central Bank of RA.
• WARNING: INTEREST RATES AND LOAN AMOUNT IF NOT PAID TIMELY, THE PROPERTY PLEDGED AND/OR FINANCIAL FUNDS MAY BE CONFISCATED BY THE LAW AND THE INFORMATION ABOUT THE CUSTOMER IS SENT TO THE CREDIT REPORTING AGENCY WITHIN 3 WORKING DAYS WHERE THE CUSTOMER’S CREDIT HISTORY IS FORMED. THE CUSTOMER IS ENTITLED TO ACQUIRE HIS/HER CREDIT HISTORY FROM CREDIT REPORTING AGENCY ONCE A YEAR FREE OF CHARGE:
• ATTENTION: BAD CREDIT HISTORY MAY PREVENT FROM RECEIVING LOAN IN THE FUTURE. IN CASE OF NON- FULFILMENT OF THE LIABILITIES BY THE CUSTOMER, WITH NON- SUFFICIENT PLEDGE DURING REPAYMENT OF THE LIABILITIES AT THE EXPENSE OF THE PLEDGE IT IS POSSIBLE TO REPAY THE LIABILITIES AT THE EXPENSE OF OTHER PROPERTY OF THE CUSTOMER.
• The credit line is provided for the whole period of the card validity.
• The credit line is provided to the borrower non-cash upon condition of monthly principal and interest repayments. The interest rate is applied on the reducing balance of the credit based on the calculation of 360 days per year.
• No interest is applied to the unused credit line funds.
• In case of provision of a credit line for a grace period, the amount of Credit line or part of it used during the reporting period, if repaid before the day of the end of Repayment period (inclusive), no interest will be calculated for it for the period from the Registration day to the day of actual repayment (inclusive).
• Overdue liability repayment: for each delayed day penalty of 13% of the overdue amount is applied.
• Early repayment of the credit line can be made any time, in this case no penalty and other payments are charged.
• Changes of foreign currency rate may affect the repayments of the credit line extended in foreign currency.
• Documents necessary for unsecured credit line
            - passport

            - personal private service number (PPS)

            - income proof document, including a reference from workplace (as needed)
• Documents necessary for credit line secured by immovable property

       Prior to loan approval

            - Borrower’s passport and personal private service number (PPS)

            - Certificate of immovable ownership and basis

            - Passports of the immovable property owners and co-owners

            - Certificate of Marriage (if married), Certificate of Divorce (if divorced) or Death Certificate (if widow/widower),

              (if the property has been obtained afterthe marriage or prior to divorce)

            - Wife’s/husband’s passport if married or divorced (if the property has been obtained after the marriage or                           prior to divorce)

            - Preliminary appraisal of the immovable property

            - Income proof documents as needed 

       After the loan approval

           - Unified statement of immovable property
           - Certificate of registration of right to immovable property pledge

• Criteria for the loan approval

         - Sustainable income source
         - Positive or neutral credit history

         - Trustworthy and complete documents
• Criteria for loan denial
        - Non-sufficient income for loan repayment

        - Untrustworthy data provided by the customer

        - Negative credit history

        - Customer’s income source risk
• Approval of the loan and notice to the customer up to 1 working day after the submission of the necessary documents
• Time for lending: up to 3 banking days after approval of loan.

Credit history

Credit history is the information on the obligations undertaken by the Customer. Credit history may have impact on credit decision-making and includes information aged at least 5 years.

Credit history includes:

• information on the amount of obligations assumed by the customer, the annual interest, the balance of obligations, the property pledged for them.
• history of payments for obligations assumed by the customer, including delays in payments from the established schedule.
• Guarantees given to other persons
• Information on obligations of related parties of the customer

The customer is entitled to get informed about his/her credit history by performing the actions indicated on the websites https://www.abcfinance.am , Frequently sked questions  or www.acra.am

When identifying errors and shortcomings in the credit history, the customers can inform the credit bureau to clarify and correct them or they can directly contact the financial institution that has submitted the information to the credit bureau.

 

 

 

Credit score

A credit score is the creditworthness assessment formed on the basis of information collected on the customer's obligations, which indicates the risk of loan recovery by the specified customer in a certain period of time.

The Bank uses its own scoring system to assess the creditworthiness of customers in the field of retail lending.

The score calculation is based on the following groups of factors:

• Credit history of the customer (delays in payments decrease the score)
• Information on the customer's employment and income (the latter’s absence decreases the score)
• Other social and behavioral factors of the customer (have both positive and negative impact on the score, depending on the type of factor and on how they are expressed)

 

Ways to improve the credit history and score

 

To improve their credit history and score, customers should do the following:

• make payments for their assumed obligations according to the schedule
• avoid credit overload and unsubstantiated new credit applications
• avoid providing guarantees to unreliable third parties.