CREDIT BASKET


 

All required loans in one basket

The Credit Basket is a bundle of loans, offered to individuals against real estate collateral. Under one Basic Agreement and a relevant loan security for a period of 10 years, you can apply for and enjoy the loans in the Credit basket. You should only mention the purpose of the loan. Repayments per loan shall be directed towards principle repayment within the first two years and shall be available for another loan.

Credit basket terms and conditions

CREDIT BASKET

Borrower

RA citizen and resident individual aged 22 (twenty-two), whose age shall not

exceed 55 (fifty-five)  

Guarantor

RA citizen and resident individual aged 22 (twenty-two), whose age shall not

exceed 55 (fifty-five)  

Currency

USD

Overdraft purpose

For personal purposes

Overdraft maximum amount

USD 200.000 (two hundred thousand)

Overdraft maximum maturity

120 months

Overdraft annual interest rate

14%, upon submission of the documented income  

18%, if no income is considered

Overdraft disbursement mode

By payment card

Overdraft and interset repayments

Monthly, equal amortization

Type of collateral*

Real estate (apartment, residential house, public territory, except for industrial territories)   

The property located in Yerevan, Abovyan, Ejmiatsin, Artashat, Ashtarak, Tsaghkadzor, Vanadzor and Dilijan can be provided as collateral    

Maximum loan-to-value ratio (liquidation value)

1.  60%, if the Borrower submits a documented income

Upon presenting the second collateral, LTV may make 70% of the first collateral. Real estate only shall considered as collateral.

2.  30%, if no income is considered

Upon presenting the second collateral, LTV may make 50% of the first collateral. Real estate only shall considered as a second collateral. 

 

Annual interest rate on past due overdraft principle 

Annual interest rate stipulated by loan agreement  

Penalty on past due interest 

0.2% daily

Penalty on past due principle 

0.1% daily

Requirements to the Borrower’s and Guarantors’ credit history    

Lack of past-due or classified liabilities with the total of past-due liabilities not exceeding 30 days  within 12 months prior to the loan application                     

Loan application processing fee

AMD 5 000

Fee for compiling and processing the loan file 

0.1% of the overdraft amount, AMD 20 000 minimum

Credit rating

1. Total maximum debt-to-income ratio – 35% (monthly repayment of the given loan/borrower and guarantor income)

2. Total maximum debt-to-income ratio – 45% (all liabilities of the borrower, family members and guarantor/borrower’s and guarantor’s income) 

Non-taxable income shall be taken as a basis.

3. If the income is not considered, credit rating shall be done in the following way - total of the Borrower’s all liabilities, including that of guarantees and overdraft, cannot exceed 50% of the liquidation value of the appraised pledged property (first collateral).

Card type

MC Standard, Visa Classic

Annual service fee of the payment card 

AMD 3500, no minimum balance requirement is set.

Card service fee shall be charged once for the overdraft whole effective period.

 

Loan type Mode of interest accrual Mode of loan and interest repayment
Credit basket Annually: on the loan balance, accepting year as 365 days
Annuity
 
Note
In case of principal amount equal payments (annuity) mode, an equal amount shall be calculated each month, consisting of principal and interests. However, at first the value of interests in the same amount is higher and the value of principal is lower. Within a certain time period this distribution is changing: the value of the principal in monthly repayments increases and the value of interests in monthly repayments decreases, but monthly repayments remain unchanged. 

Notification

1. A house, an apartment in the multistory building, non-residential real estate and plots may serve as a loan security. Moreover:
The property must be neither a public housing nor be located in the territory of other building – either hostel or hotel territory,
All unauthorized constructions of the real estate must be registered and outlined in the ownership certificate (must be legalized),
The real property must not be located in a three-degree and more unsafe building,
Pursuant to the ownership certificate the property must be at least 80% completed,
If the collateral is a plot, the cadaster value of which is not paid, the cadaster value of the plot will be decreased from that of the appraised value of the collateral when calculating the loan-to-value ratio,
If the pledged property is a detached house, it will be completely pledged.
2. If the Borrower does not get a loan within a year after the agreement has been signed, the loan shall be disbursed after additional analysis of the customer creditworthiness.
3. 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.
4. The property shall be subject to insurance at the rates set by insurance companies for the whole period of loan service. Moreover, appraised liquidation value of the property shall be deemed as basis for the property insurance. Please refer here for the list and rates of insurance companies.
5. Both the borrower and co-borrowers shall be subject to compulsory insurance against accidents during the effective loan period. Please referhere for the list and rates of insurance companies.
6. Loan decision shall be made within 5 business days after all required documents have been submitted.
7. After the authorized body has made a loan decision the borrower shall be notified about it within one day. The required documents shall be collected and the loan shall be disbursed within 15 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 submitted to the authorized body for a second consideration in case the loan application is subject to review.

The loan application will be approved if

1. the customer submits the complete package of documentation and the loan application.
2. the query made to CBA credit register shows that the Potential borrower and/or the Potential co-borrower did not have classified liabilities and/or on the whole were not at least 30 days past due within the past 24 months prior to the query.
3. the appraised value of the Collateral or Collaterals meets the requirements.
4. both the Borrower’s and the Co-borrowers’ revenues meet the requirements.
5. the body authorized to take loan decisions within the Bank approved the loan application.
6. Other requirements.

The loan application will be rejected if

1. the customer has failed to submit all documents necessary for getting the loan.
2. the query made to CBA credit register shows that the Potential borrower and/or the Potential co-borrower had classified liabilities and/or on the whole were at least 30 days past due or had 5 past due cases within past 24 months prior to the query.
3. the appraised value of the Collateral or Collaterals does not meet the requirements.
4. both the Borrower’s and the Co-borrowers’ revenues do not meet the requirements.
5. the Borrower and the Co-borrower submits false documents and/or information.
6. the rejection base of loan application is available in the loan historical database, which is not removed.
7. the body authorized to take loan decisions rejected the loan application.
8. the loan has been approved, but the customer has failed to present himself/herself within 15 days after approval or has failed to present the necessary documents.
9. Other requirements.




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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