STUDENT LOANS


 



Study today, pay tomorrow

Since ARARATBANK attaches great importance to the education of the young generation and development thereof, it offers a new type of loan. Loans will be disbursed to master and bachelor students of state and state-accredited institutions of higher education within the framework of the project. During the study period the borrowers will repay interests only (maximum 4 years), and equal repayments of the principal and interests after graduation.


Terms and conditions
Borrower RA citizen and resident, who is either a master or a bachelor student of state and state-accredited institutions of higher education as specified in Table 1
Loan currency AMD
Loan purpose Payment of tuition fees
Annual interest rate 12%
Maximum loan amount AMD 1 800 000 disbursed in maximum 4 installments. Moreover, the amount of each installment shall not exceed AMD 450.000 depending on the amount of the tuition fee
Loan maturity Loans will be disbursed for a maximum of 10 years. During the study period the borrowers will repay interests only (maximum 4 years), and equal repayments of the principal and interests after graduation.
Loan security Guarantees by at least 2 people. Moreover, one of the guarantors shall be one of the parents of the Borrower or the guardian thereof, and second guarantor shall be the relative of the Borrower.
Requirement to the credit history of borrowers and guarantors The potential borrower and guarantors must not have classified liabilities on the day the loan application is submitted and the total of past due days must not exceed 30 days within previous 24 months
Guarantor credit rating Pursuant to the Procedure of Consumer Loans Disbursement
Loan and interest repayments Monthly annuity payments
Loan and interest repayments Loan disbursement mode Non-cash to the bank account of an institution of higher education
Annual interest rate for past-due loan amount CBA settlement rate of bank interest
Penalty on past-due interest 0.5% per day
Penalty on past-due loan 0.3% per day

Notification:
1. No minimum loan amount shall be set.
2. No penalties for early loan repayments shall be set.
3. In case a student is dismissed from an institution of a higher education, he/she shall be obliged to repay the whole loan amount and interests accrued as of that date, including accrued penalties, if there are such.
4. Loan interests shall be calculated based on the annual nominal interest rate.
5. And the annual actual interest rate shows how much the loan will cost, in case the customer makes interest and other payments in due time and fixed amount. Please refer here for actual annual interest rate calculation.
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.

Requirement to students

Loan applications will be approved taking into account the progress of a student and based on the documents below:

  • A first-year student – a copy of a school leaving certificate and results of entrance exams,
  • A second-year student and students of higher courses, as well as master students – a copy of a student’s record book,
  • Each student will be required to submit a reference from an institute of higher education, stating that the given student studies in the given institution. The reference shall be submitted at the beginning of each academic year.

 

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 guarantor 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 Guarantors’ revenues meet the requirements.
5. the body authorized to take loan decisions 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 guarantor had classified liabilities and/or on the whole were at least 30 days past due 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 Guarantors’ revenues do not meet the requirements.
5. the Borrower and the Guarantor submits false documents and/or information.
6. the rejection basis of loan application, which is not removed, is available in the credit historical database,
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.


INFORMATION

Loan type Mode of interest accrual Mode of loan and interest repayment
Student loan Annually: on the loan balance, accepting year as 365 days
During the study period the borrowers will repay interests only, and equal repayments of the principal and interests after graduation
Note
In case of equal payments (annuity) mode, an equal amount shall be calculated each month, which consists of the principal and interests. However, at the beginning the value of interests will be higher in the amount, and the value of the principal amount will be lower. Within the time period such distribution will decrease, that is to say, the value of the principal amount during monthly repayments increases, and the value of interests decreases, but monthly payments remain unchanged.


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.




Please refer to https://www.abcfinance.am/finhelper/index.php?type=consumerto get understanding of the system of financial assistance.

 

 

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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