Real Estate-Backed Overdrafts


 

Real estate-backed loans and overdrafts* via MC Standard plastic cards

Loan currency

Maximum loan amount

Maximum loan maturity

Minimum annual interest rate

Maximum loan-to-value ratio

USD

50,000

60 months

12%

70%


Important to know

  • Loan decision shall be made within 5 days after all the required documents have been submitted.
  • In case of preterm repayment of loan, the Borrower shall not pay penalties.
  • The collateral appraisal shall be made by independent licensed appraisal companies cooperating with the Bank at the rates set by appraisal companies. Please refer here for the list and rates of appraisal companies.
  • The customer shall be issued MasterCard Standard free of charge with the annual service fee of AMD 5000.
  • Mode of interest accrual: on the loan balance, accepting year as 365 days.
  • Mode of loan and interest repayment: annuity (each month evenly repaid loan amount, accrued and gradually reducing interest amounts calculated over the reducing loan balance) and even amortization
  • If the borrower fails to fulfill his/her obligations on timely basis he/she shall pay penalties in amount of:
    a) 0.3% of the past due interest
    b) 0.2% of the past due loan amount


The loan application will be approved if

1. The customer has submitted the complete package of documentation and the loan application.
2. After the loan application and the required documentation have been submitted, a query is made to the Central Bank credit register and/or ACRA credit bureau regarding the Applicant’s (co-borrowers’, guarantors’, as well as co-residing family members’, if available) credit history.
3. After the Bank discovers that the borrower has a positive credit history or no credit history at all, the Bank shall make an evaluation of the Applicant’s creditworthiness and solvency and site visit the applicant if necessary.
4. If the evaluation of creditworthiness shows positive results the Bank proceeds to appraising the property offered as collateral.
5. If the appraised property offered as collateral is acceptable, the Bank shall prepare the loan opinion and present it for the discussion of the relevant body authorized to approve the loan.
6. After the loan has been approved the parties shall execute all documents (including insurance against accidents of the borrower/co-borrower, the pledged collateral) as required by the RA legislation and other legal acts, and the loan shall be disbursed thereafter.


The loan application will be rejected if

1. The customer has failed to submit all documents necessary for getting the loan.
2. Queries from the Central Bank Credit Register and/or ACRA credit bureau have revealed that the customer (or the co-borrowers, guarantors, as well as co-residing family members, if available) has a negative credit history. The credit history will be deemed as negative if the customer has or used to have past due payments, or loans that were classified in accordance with the “Regulation of Classification of Loans and Receivables and Formation of Reserves for Possible Losses of banks operating in Armenia” jointly approved by the Central Bank of Armenia and Ministry of Finance and Economy.
3. The evaluation of borrower’s creditworthiness has revealed that the borrower is not creditworthy.
4. The property offered as collateral is not acceptable for the Bank as discovered after the property appraisal.
5. The body authorized to make resolutions on loan applications within the Bank has not approved the application.
6. The loan has been approved, but the applicant has failed to present himself/herself within 15 days after approval or has failed to present the necessary documents.
7. During the lending process the Bank has received information which prejudices the customer’s solvency.

Loan type Mode of interest accrual Mode of loan and interest repayment
Real estate-backed loans and overdrafts Annually: on the loan balance, accepting year as 365 days
Even amortization
Note
In case of principal amount equal payments (amortization) mode, an equal amount shall be calculated each month for the repayment of the principal amount. The interests are not equal- they increase at the beginning of the loan and decrease during the principal repayment. So, the loan repayments, which are made every month, change by decreasing gradually.


WARNING
IF THE BORROWER FAILS TO MAKE TIMELY INTEREST AND PRINCIPAL REPAYMENTS, THE BANK WILL HAVE TO REPORT THAT NEGATIVE INFORMATION TO THE CENTRAL BANK CREDIT REGISTER.

WARNING
IF THE BORROWER FAILS TO PERFORM OR DULY PERFORM LOAN OBLIGATIONS UNDER THE LOAN AGREEMENT, ALL LIABILITIES ASSUMED BY THE BORROWER SHALL BE DISCHARGED OUT OF THE PROCEEDS OF REPOSSESSING AND SELLING THE COLLATERAL THAT WAS PLEDGED AS LOAN SECURITY

WARNING

IF THE BORROWER FAILS TO PERFORM LOAN OBLIGATIONS, THE COLLATERAL AND THE BORROWER’S OTHER PROPERTY (IF THE COLLATERAL HAS LOST ITS VALUE) MAY BE CONFISCATED AND REALIZED BOTH THROUGH DIRECT SALE AND PUBLIC AUCTIONS IN LEGAL OR OUT-OF COURT FORMS.

 

 

 

SMS service

terms and conditions

* card expiry

* loan or overdraft maturity upon customer request

* (line of credit) overdraft repayment date and amount drawn from the account  upon customer request   

* annual service fee

* loan or overdraft monthly repayment  upon customer request

 

 

 

    AMD 30.00

 




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