Loans are available at the Bank’s Head Office and full-service branches.

The collateral must be appraised by an independent appraisal firm cooperating with the Bank and be acceptable to the Bank.

Attention: Loan interest is calculated based on nominal interest rate, with the effective annual interest rate reflecting the total cost of loan upon full and timely payment of interest and all mandatory loan processing and servicing fees.

How to Calculate Effective Annual Interest Rate

The effective annual interest rate may change depending on changes in exchange rates published on the official website of the Central Bank of Armenia.

Exchange rate volatilities may affect the installments in case of loans in foreign currencies.

Mandatory Fees 

DOCUMENTS REQUIRED FOR THE ANALYSIS OF THE LEGAL STATUS AND FINANCIAL POSITION

1. Loan application;
2. Copies of founding documents — state registration certificate, tax code;
3. Copies of the passport and social security card;
4. Financial statements for the previous reporting period, VAT, social payments, income tax, (in case the loan amount exceeds AMD 8.000.000 or equivalent foreign currency);
5. Statement issued by tax authority on outstanding liabilities towards budget, (in case the loan amount exceeds AMD 8.000.000 or equivalent foreign currency);
6. Copy of license, upon carrying out an activity subject to licensing in cases stipulated by the legislation of the Republic of Armenia.

 IN CASE LOAN IS SECURED BY GUARANTEE

1. Copies of the passports and social security cards of the guarantors;
2. Employment reference, provided that a guarantor’s income is not generated from entrepreneurial activity and/or the guarantor is not a family

 IN CASE REAL PROPERTY IS PLEDGED

1. Ownership certificate (original);
2. Grounding document on the right of ownership (upon request);
3. Copies of ID documents of the owner (co-owners), (marriage certificate of co-owners);
4. Statement issued by territorial subdivision of the State Committee of Real Estate Cadastre under the Government of the Republic of Armenia regarding restrictions on the property to be pledged (such statement shall be provided upon positive lending decision);
5. Appraisal report made by a person holding a respective

IN CASE OTHER COLLATERAL IS PLEDGED

1. List of property, by specifying the unit of measure, quantity, balance sheet value and, upon availability, acquisition documents;
2. In case of the vehicle, vehicle registration document and certificate of title (original copy);
3. In case of guarantee, guarantors’ passports and social security cards;
4. Appraisal report made by a person holding a respective license (upon request).

LIST OF REQUIRED DOCUMENTS FROM REPEATED MICRO LOAN BORROWERS WITHIN THE FRAMEWORK OF MASTER LOAN CONTRACT

1. Financial statements for the previous reporting period, VAT, social payments, income tax (in case the loan amount exceeds AMD 8.000.000 or equivalent foreign currency);
2. Statement issued by tax authority on outstanding liabilities towards budget (in case the loan amount exceeds AMD 8.000.000 or equivalent foreign currency);

Other additional documents upon

A customer must submit original copies of the documents above or duly verified copies thereof.

DOCUMENTS REQUIRED FOR THE ANALYSIS OF THE LEGAL STATUS AND FINANCIAL POSITION

1. Loan application;
2. Decision of the authorised body on loan disbursement and pledge of property;
3. Copies of founding documents — Charter with all amendments and supplements to be made thereto, State registration certificate with its inserts, including the insert on the information about director of the company, tax code;
4. Statement issued by State registry on the amendments to the Charter, Director and shareholders, including a statement issued by Central Depository (registry keeper) for open joint stock company and a statement issued by shareholder registry keeper for closed joint stock company;
5. Copies of the passport and social security card of Director and the shareholders with a stake exceeding 25%;
6. Financial statements for the previous reporting period, VAT, social payments, income tax (in case the loan amount exceeds AMD 8.000.000 or equivalent foreign currency);
7. Statement issued by tax authority on outstanding liabilities towards budget (in case the loan amount exceeds AMD 8.000.000 or equivalent foreign currency);
8. Copy of license, upon carrying out an activity subject to licensing in cases stipulated by the legislation of the Republic of Armenia

IN CASE REAL PROPERTY IS PLEDGED

1. Ownership certificate (original);
2. Grounding document on the right of ownership (upon request);
3. Copies of ID documents of the owner (co-owners), (marriage certificate of co-owners);
4. Statement issued by territorial subdivision of the State Committee of Real Estate Cadastre under the Government of the Republic of Armenia regarding restrictions on the property to be pledged (such statement shall be provided upon positive lending decision);
5. Appraisal report made by a person holding a respective

 IN CASE OTHER COLLATERAL IS PLEDGED

1. List of property, by specifying the unit of measure, quantity, balance sheet value and, upon availability, acquisition documents;
2. In case of the vehicle, vehicle registration document and certificate of title (original copy);
3. In case of guarantee, guarantors’ passports and social security cards;
4. Appraisal report made by a person holding a respective license (upon request).

OTHER ADDITIONAL DOCUMENTS THE NECESSITY OF WHICH IS DETERMINED BY THE BANK

1. The Bank may require to have the loan security insured against the risks of loss and damage and submit necessary documents related thereto;
2. Other additional documents upon

LIST OF REQUIRED DOCUMENTS FROM REPEATED MICRO LOAN BORROWERS WITHIN THE FRAMEWORK OF MASTER LOAN CONTRACT

1. Loan application;
2. Decision of the authorised body on loan disbursement and pledge of property;
3. Financial statements for the previous reporting period, VAT, social payments, income tax (in case the loan amount exceeds AMD 8.000.000 or equivalent foreign currency);
4. Statement issued by tax authority on outstanding liabilities towards budget (in case the loan amount exceeds AMD 8.000.000 or equivalent foreign currency);

Other additional documents upon

A customer must submit original copies of the documents above or duly verified copies thereof.

Loan file preparation and service fee shall be determined given the disbursed loan amount.
Where the loan is disbursed in tranches, the Loan file preparation and service fee shall be charged once from the total amount of all tranches during disbursement of the first tranche and where further tranches are not disbursed, final calculation shall not be made and the commission fee charged shall not be refunded.    

Where

●the disbursed loan, due to diversity of attracted funds (resources), is split into a few parts, and/or   

●the loan is disbursed based on loan agreements concluded under the master contracts in respect of execution of two or more loan operations, and/or   

●the loan is disbursed under the separate loan contract and based on loan agreement(s) concluded under the master contract(s) in respect of execution of loan operations, and/or      

●the loan is disbursed under two or more loan contracts,  

the loan file preparation and service fee shall be charged from the total loan amount in proportion to the amounts disbursed under loan contracts and/or agreements.  

-The loan security (collateral) appraisal shall be made by independent licensed appraisal companies at the rates set by appraisal companies.

-The loan decision shall be made within 3 working days after the loan application has been submitted.

- After the authorized body has made a loan decision, the borrower shall be notified about it within one day. After the loan disbursement decision has been made, the required documents shall be collected and the loan shall be disbursed within 10 working days. Where the loan is not disbursed within the mentioned period, the decision made by the authorized body shall be deemed as void and shall be submitted to the authorized body for reconsideration, in case the loan application is subject to review.

- Where the loan is disbursed in US dollars, currency fluctuations may affect loan repayments.

- Where the Borrower is reported to have been 10(ten) days past due and over within 12 (twelve) months prior to the submission of loan application, the loan file preparation and service fee shall be charged twice as much.

• Collateral shall be appraised by the independent licensed appraisal companies at the rates set by the appraisal companies.

• Loan decision is made within 30 business days after the loan application has been submitted.

•  After the authorized body has made a decision on the loan the borrower shall be notified about it within one day. The required documents shall be collected and the loan shall be disbursed within 10 days after the loan approval decision has been made. If the loan is not disbursed within the mentioned period the decision made by the authorized body shall be deemed as void and shall be presented for a second discussion by the authorized body in case the loan application is subject to review.

•  In case the loan is extended in US dollars, changes in foreign currency exchange rate may influence the loan repayments.

Your property (house, vehicle, or other) may be confiscated in the manner provided for by law where you fail to repay your interests and principal in time.

Where you fail to perform your obligations either fully or partially, the Lender shall send those data to the credit bureau within a three-day period, where your credit history is generated. You shall have the right to obtain your credit history from the bureau free of charge. Attention: A bad credit history may hinder lending in the future. 

You have the right to communicate with a financial institution of your choice by post or e-mail. Receiving information electronically is the most convenient option. It is available 24/7, free from the risks of loss of paper information and ensures privacy.

The bank may request additional documents or other information based on the "Know your customer" principle, as well as ask additional questions during oral communication, for the purpose of due diligence of the customer defined by the RA Law "On Combating Money Laundering and Terrorist Financing". 

In accordance with the agreement signed with the USA based on the Compliance Act (FATCA), the financial organization may collect additional information to determine whether you are a US taxpayer.

What is a credit history? 

The RA Law "On Circulation of Credit Information and Activities of Credit Bureaus" defines credit information as data on liabilities, payments and habits of credit information entity used by financial institutions when assessing customer creditworthiness, as well as by manufacturers, vendors and service providers when selling goods/services on installment.

Why credit history matters

Customer credit history plays a critical role in assessing customer creditworthiness and making informed credit decisions. A credit report - obtained via customer consent - provides a comprehensive snapshot of a customer’s credit behavior, including current and repaid liabilities, payments, and guarantees. A positive credit history can be generated through timely payments and intentional and responsible use. A credit report is a paper or electronic document that contains information on the credit information entity (natural or legal) and the fulfillment of its financial liabilities to business entities.

The credit report is compiled based on data received from ACRA partner organizations and reflects credit data for the last 5 years preceding the date of the inquiry.

Types of score

To assess customer creditworthiness before extending certain types of loans, AraratBank uses its own scoring system. A credit score is a numerical assessment of customer creditworthiness based on an analysis of their credit history, income, solvency, and other data.

FICO Score is a numerical assessment of customer creditworthiness based on an analysis and statistical study of their credit history.

Requests for new credit or increases to existing credit limits can reduce a FICO score.

The Bank’s in-house scoring mechanism is based on the following data categories:

1. Credit history and debt burden,
2. Income,
3. Workplace and work experience,
4. Other factors.

Purpose of inquiry

Consent to conduct inquiries is mandatory for reviewing a loan application and for analyzing (monitoring) existing loans and other financing agreements. When the Bank presents offers to the customer, such inquiries are carried out only if the customer has provided their consent.

How long does information stay on my credit report?

According to the provisions of Article 11 of the RA Law ”On Circulation of Credit Information and Activities of Credit Bureaus”, credit reports issued by credit bureaus must not include credit data older than five years from the date of issuance.

How can I improve my credit history?

You can improve your credit history by repaying existing loans according to the scheduled timeline, by reducing the number of existing loans through their partial or complete repayment, as well as by ensuring timely fulfillment of obligations assumed under guarantees.

How do I dispute an error on my credit report?

According to the provisions of the Article 20 of the RA Law ”On Circulation of Credit Information and Activities of Credit Bureaus”, you may correct inaccurate or incomplete data in your credit history by submitting a notification to the credit bureau or applying directly to the company that provided the information (credit information source). The credit bureau may be notified either in written or electronic form via My ACRA personal portal. The Dispute Resolution Procedure of “ACRA Credit Reporting” CJSC defines the specific sequence for receiving, examining, and responding to client complaints regarding credit reports.

For more details, visit the links below:

• abcfinance.am
• FAQ - ACRA (acra.am)
• FICO Score - acra.am