Lines of credit (overdrafts) — secured by bonds issued by ARARATBANK OJSC — to individuals at the same currency as bonds

Terms and conditions

Overdraft amount

Interests paid at maturity

Interests paid monthly

LTV ratio 90%

LTV ratio 95%

Overdraft maturity

Overdraft effective period cannot exceed the bond effective period.

Overdraft annual interest rate

3% per annum added to the coupon rate of the issued bond


Annual actual interest rate calculation formula and sample

Annual actual interest rate shall be calculated based on the following formula   



stands for the annual actual interest rate, which is the total expense of the borrower, expressed by annual interest rate of the disbursed loan, which contains all interests and other payments, which the consumer is obliged to pay at the loan disbursement date and during the whole effective period of loan. 


stands for the initial amount of the loan disbursed to the consumer.


stands for the number of regular loan repayment  


stands for the number of last loan repayment


Stands for nth  amount of loan repayment


Period between loan disbursement date and the date the nth loan repayment is made, expressed by the number of days

Loan calculation sample:

  • Bond value  – AMD 1,500,000 at 14% per annum;
  • Loan amount – AMD 1,350,000(1,500,000×90%);
  • Annual interest rate of the loan - 17%(14%+3%);
  • Loan maturity - 12 months;
  • Annual actual interest rate will make 16,99%.

The presented calculation sample is conventional.

General sheet on the line of credit (essential terms). 

Announcement on providing the borrower with a general sheet on essential terms prior to execution of loan contract.