 For Individual Clients
Credit Line Secured by Property Issued by Credit Card
Credit cards offer you an opportunity to use amounts within the limit of revolving credit line opened by the bank, without crediting the card account. The maximum amount of the revolving credit that can be borrowed on card is your credit limit.
Credit line is provided with credit cards. Credit cards are cards with grace period.
Credit cards are intended for non-cash payments and can be used also for receiving a credit line with grace period. You will be able to buy the goods you prefer today and pay for them within 51-day grace period.
METHOD AND FREQUENCY OF PAYMENTS
Repayments
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If the borrower fully repays the amounts utilized during one month before the 21st day of the following month (Grace Period), no Interest shall accrue on the utilized amounts.
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If the borrower does not repay the utilized amounts by the 21st day of the following month in full, they should pay at least 10% of used funds specified in the statement and accrued interest or the minimum required installment defined by the bank's tariffs, whichever greater.
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If the client does not make repayment, utilized amounts bear interest starting from the first day withdrawn. The same interest accrues to amounts utilized after that.
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If the borrower fails to repay the amounts specified in the above clause 2, a fine shall be charged according to the fees and rates of the Bank.
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Interest shall be paid at least on monthly basis.
Form of disbursement
Loan is disbursed in non-cash form by crediting the amount to the card account.
Eligibility criteria: N/A
There are no required charges, unless the loan is secured by real estate or movable property, in which case the collateral is insured and appraised by a specialized company which charges commissions or interest as per its tariffs and rates.
Loan decision
The bank reviews the loan application and makes a preliminary decision within 2 business days. If approved, the final loan decision is made within no more than 8 (eight) business days upon receipt of the complete set of documents. The bank's decision is communicated to the client within 1 (one) business day. The loan is issued to the borrower only after execution of security agreements specified in the agreement.
The loan will be disbursed to the borrower within 1 (one) business day after the following conditions precedent have been met:
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security agreements have been signed in accordance with the Armenian laws and regulations, such agreements prepared in form and substance satisfactory to the Bank,
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the collateral has been insured (upon the Bank’s request) by an insurance company cooperating with the Bank,
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the borrower has fulfilled other conditions of loan issuance.
Once the Bank makes a loan decision, if the client.
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Confirms his/her intention to receive the loan within 45 (forty-five) calendar days upon getting loan approval notice, the loan processing and issuance process starts.
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Confirms his/her intention to receive the loan after 45 (forty-five) calendar days upon getting loan approval notice, the loan decision is subject to re-approval.
What may help you to get your loan approved
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Long-standing relationship between the Bank and the client
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Business reputation
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Turnover of the client's funds through Ameriabank accounts
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Average balance on the accounts with Ameriabank, etc.
Why your application might be rejected
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The information (documents and other data) provided by the borrower is not trustworthy or complete.
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The borrower's declared income is not sufficient to cover the liabilities.
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The borrower has bad credit history, delinquent and/or classified liabilities (including to third parties).
Loan-to-value (LTV) ratio
The bank can issue a card line of credit to the borrower under the following terms:
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Currency
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Interest rate
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Credit limit/Deposit principal (LTV) [1]
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Same as deposit currency
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Deposit rate + 4%
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Up to 90%
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Other than deposit currency
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According to the tariffs for credit lines via cards
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Up to 70%
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[1] The deposit principal used for calculation of the ratio does not include the interest accrued at the beginning of the term.
Any overdue liabilities on the credit card shall be charged to the deposit principal without prior notice.
Downpayment
N/a for this loan facility.
Exchange rate volatilities may affect the installments in case of credit lines in foreign currencies.
Attention! If the borrower fails to repay the minimum installment the bank will charge a fee in the amount of AMD 5000. For credit cards issued after January 2015 late payment penalties prescribed by the Retail Lending Terms and Conditions will be applicable instead of lump-sum fee.
Attention! No restrictions for repayment before due date!
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Credit Line Secured by Property Issued by Credit Card
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Who may apply
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Citizens and non-citizens of Armenia who are resident in Armenia and are aged 18-65
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Loan purpose
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Payments
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Currency
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AMD
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USD
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EUR
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Form of disbursement
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Loan is disbursed in non-cash form by crediting the amount to the card account.
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Maximum amount of total unsecured liabilities (including liabilities to other banks and credit organizations)
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8x income. Where documented income is received through Ameriabank or where income is registered in Nork Informational and Analytical Center: maximum AMD 10 million
Where documented income is received through other channels than Ameriabank: maximum AMD 6 million
Where there has been balance on accounts with Ameriabank within the most recent 6 months: maximum AMD 6 million
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Loan term
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48 months - before the borrower reaches 65
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Lending limit**
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Where documented income is received through Ameriabank or where income is registered in Nork Informational and Analytical Center: maximum AMD 10 million
• Maximum 4x income
Where documented income is received through other channels than Ameriabank: maximum AMD 3 million
• No guarantee required, if maximum credit limit is 3x income
• Where there has been balance on accounts with Ameriabank within the most recent 6 months: the lesser of average 6-month balance and average balance of the last month: up to 3 million AMD
Maximum 3x account balance
* Average account balance should be at least 100,000 AMD. Applicable to those clients who have had accounts with Ameriabank for at least 3 months; where there are deposits, the deposit amount is counted only once.
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Card type
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Annual interest rate/
Effective rate [1]
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Minimum and maximum credit limits
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Annual service fee
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Card package service fee
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Master Card Standard/VISA Classic
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17.5%
14.5%
12.5%
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AMD 1,000,000 - AMD 1,500,000
USD 3000 - USD 5,000
EUR 3000 - EUR 5,000
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AMD 2,500
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-
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Master Card Gold/VISA Gold/
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16.5%
13.5%
11.5%
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AMD 1,500,000 - AMD 5,000,000
USD 5,000 - USD 15,000
EUR 5,000 - EUR 15,000
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AMD 2,000 monthly/ AMD 20,000 annually
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AMD 1,500 monthly/ AMD 15,000 annually
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Master Card Platinum/VISA Platinum
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16.5%
13.5%
11.5%
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AMD 5,000,000 - AMD 20,000,000
USD 15,000 - USD 50,000
EUR 15,000 - EUR 50,000
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AMD 3,000 monthly/ AMD 30,000 annually
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AMD 2,000 monthly/ AMD 20,000 annually
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VISA Infinite
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15.5%
12.5%
10.5%
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AMD 7,500,000 - AMD 100,000,000
USD 5,000 - USD 200,000
EUR 15,000 - EUR 200,000
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AMD 10,000 monthly/ AMD 100,000 annually
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Effective rate
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AMD
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17.2-23.3%
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USD
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13.8-19.2%
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EUR
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11.6-16.8%
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Increase of credit limit of card
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AMD 5,000
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Repayment frequency
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Monthly
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Grace period
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Up to 51 days
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Interest calculation
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If the client repays the whole amount utilized in one month during the grace period, no interest accrues.
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If the client does not make repayment, utilized amounts bear interest starting from the first day withdrawn. The same interest accrues to amounts utilized after that and is payable on monthly basis.
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Eligible security [2]
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Real estate, vehicles, plant and equipment to the reasonable satisfaction of the bank, metal accounts in gold, cash and bonds issued by Ameriabank
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Maximum loan-to-value (LTV) ratio (if the loan is secured by real estate, vehicles or plant and equipment, calculation is based on their liquidation value)
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The value of the loan security shall be included in the estimation of the LTV ratio in an amount not more than:
1. Real estate: 70% if in Yerevan, 60% if outside Yerevan
2. Vehicles: 60%
3. Property and equipment: 40%, but not more than 30% of the value of aggregate pledge
4. Metal accounts in gold with Ameriabank: 80%
5. Cash collateral/bonds issued by Ameriabank:
- 90% if currency of the collateral is the same as of the loan
- 70% if currencies of the collateral and the loan are different
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Property appraisal
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Pledged assets to be appraised by an appraising partner of the bank.
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Insurance of property
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The insurance of real estate, vehicles and plant and equipment is maintained throughout the loan term:
1. If obtained by client: to the extent of at least outstanding principal
2. If obtained by the bank: to the extent of outstanding principal
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Other fees payable by client
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• Fee for unified statement issued by the State Committee of Real Estate Cadaster of the Republic of Armenia
• Fee for notarization of pledged assets/vehicle and filing of the bank’s security interest under pledge agreement
• Fee for statement from the Police on encumbrance of vehicle
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Early repayment
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5% of prepaid amount, chargeable if early repayment of the whole or part of loan is made during the first 3 years of loan term. Applicable to loans exceeding AMD 15 million where the credit limit has been prepaid in full. Not applicable to loans secured by cash or bonds.
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Minimum payment required
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10% of utilized amount as in account statement, or AMD 5,000/USD 10/EUR 10, whichever the greater, plus accrued interest
* Not applicable to loans secured by cash/bonds and credit cards to Premium and Partner clients
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Security
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The bank may request guarantee of individuals and/or companies as security.
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Guarantee
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Guarantors’ documented income should comprise at least 50% of the borrower's income, and their credit history should meet the criteria set by the Bank.
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Late payment fines and penalties
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Fine in the amount of 0.13 % of overdue loan/interest for each day of delay
The interest rate specified in the loan agreement shall continue to be applied to overdue loans.
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Loan formalization venue
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Bank
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[1]
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If at the Client's request the pledge is insured by the Bank, the interest rate shall be increased by the premium set by the Bank.
- Vehicles: 2.5%
- Fixed assets: 0.5%
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Where the insurance of real estate is obtained by the client, the interest rate is reduced by 0.05%, based on the share of each type of assets in the total collateral.
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If loan-to-value ratio differs from approved standard, the applicable interest rate is increased by 0.5%.
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If repayment schedule is differentiated or mixed, the applicable interest rate is increased by 0.5%.
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Depending on credit history, the applicable interest rate can be increased by 0.5%.
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Where the client chooses a repayment option without early repayment fee for loans exceeding AMD 15 million, the interest rate is increased by 2% (not applicable to loans secured by cash/bonds).
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If the application is reviewed online (based on scoring system) or according to the terms and conditions of lending defined for employees of respective industries of economy other terms may apply, such as
- Nominal interest rate: 14% - 21%
- Effective rate: 14.81 - 23.15%
[2] Location of the real estate to be pledged: Capital cities and regional centers of Armenia and Artsakh, as well as the towns of Abovyan, Etchmiadzin, Jrvezh, Arinj, Dzoraghbyur, Tsaghkadzor, Dilijan, Qajaran and Jermuk.
Age of vehicles to be pledged is max 12 years for foreign brand vehicles other than vehicles made in Russia, China and Iran, in which case max age is 8 years.
In addition, the client will pay for the following services:
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Notary fee: AMD 14,000-16,000 lump-sum (in case of vehicles)
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Notary fee: AMD 13,000-18,000 lump-sum (in case of real estate)
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Fee for unified statement from the State Real Estate Cadaster on encumbrance of the property: AMD 10,000
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Fee for registration of security interest in the real estate: AMD 26,000
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Fee of the Police of the Republic of Armenia (for lien and pledge of movable property): AMD 5,000 lump sum
Loan service fees
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Purpose
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AMD
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Modification of the loan terms
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15,000
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Change of the loan repayment date
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5,000
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Substitution of pledged property (for real estate; including change of the property owner)
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10,000
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Substitution of pledged property (for vehicles; including change of the owner of the pledged vehicles)
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5,000
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Provision of pledge-related consents, permissions and references
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5,000 (VAT included)
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The fee is charged if the modification is requested by client. Where there are several applicable fees for the same modification, the highest fee is charged and only once. Fees are not applicable in case of loans secured by cash, bonds and metal accounts. If the modification implies adding new pledge or involving a new guarantor, no fee is charged.
Required documents
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Required documents filed together with loan application
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Loan application
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ID (original)
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Certificate of ownership of property to be purchased/pledged (copy)
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Documents required after initial approval
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Proof of employment and/or other income
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Marriage (divorce, spouse death), birth certificate (original)
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Certificates of registration and ownership certificates of vehicles to be pledged (original)
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Certificate of title to real estate to be pledged (original)
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Geodetic measurement report of land plot to be pledged**
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Initial report on appraisal of real estate/vehicle
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Other documents as the bank's specialist may request
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Documents required after loan approval
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Copies of bases of title to real estate (to be submitted upon request)
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IDs of owners of property to be purchased/pledged (originals)
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Copies of marriage (divorce, spouse death) certificates of owners of property to be pledged
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Statement from the State Committee of Real Estate Cadaster on encumbrance of real estate (unified statement)
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Statement, issued by the Police, on encumbrance of vehicle
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Real estate appraisal report (final)
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Real estate/vehicle insurance policy
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Other documents as the bank's specialist may request
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Information for the Guarantor
If the Borrower fails to meet his/her loan obligations in a proper manner, the guarantor will take on responsibility of the debt and will have to repay the outstanding loan.
The guarantor is entitled to receive reimbursement from the borrower for the repaid debt, i.e. the guarantor may request the borrower to reimburse the amount paid to the lender, the interest and other expenses incurred as a result of taking responsibility instead of the borrower.
The lender must warn the guarantor in advance about pending loan repayment, i.e., if the borrower fails to meet his/her obligations in due manner, the guarantor is required to repay the outstanding debt within the period defined in the guarantee agreement after getting the respective notice from the lender.
The guarantor’s name may appear in the BAD BORROWER LIST, i.e., if the borrower doesn’t repay his/her obligations, the guarantor’s name may be reported to the Credit Bureau, where the credit history is originated. This may affect the guarantor’s future loan applications.
Statements
We will provide you the statements of your credit accounts through communication channels and at frequency agreed between you and us and/or in accordance with the Armenian laws and regulations. The statements are provided by post, email, Internet-Bank or in person at any branch of the Bank.
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Provision of statements, information and copies of documents
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Service
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Provision of account statements, copies of account statements or other documents kept in electronic form, backdated up to 1 year
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Free
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Provision of account statements or copies of account statements backdated more than 1 year or other documents kept in electronic form7
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AMD 5,000 per annual statement per account, VAT included
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Provision of copies of documents kept in paper or backdated more than 1 year and kept in electronic form
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AMD 5,000 per document, VAT included
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Provision of references
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To holders of 3+ months old accounts6
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AMD 3,000, VAT included
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To holders of less than 3 months old accounts
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AMD 5,000, VAT included6
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Attention!
WHEN YOU APPLY FOR A LOAN, WE WILL PROVIDE YOU AN INDIVIDUAL LEAFLET DETAILING ALL ESSENTIAL TERMS OF YOUR CONSUMER LOAN.
Attention!
THE LOAN INTEREST RATE MAY NOT EXCEED THE DOUBLE OF THE BANK RATE DECLARED BY THE CENTRAL BANK OF ARMENIA.
Attention!
LOAN INTEREST IS CALCULATED AT THE NOMINAL INTEREST RATE. THE LATTER SHOWS THE ANNUAL INTEREST ON THE LOAN CALCULATED AS A PERCENTAGE OF THE OUTSTANDING LOAN BALANCE. THE LOAN INTEREST IS ACCRUED TO THE OUTSTANDING LOAN PRINCIPAL IN THE LOAN CURRENCY DAILY, BASED ON A 365-DAY CALENDAR YEAR.
THE ANNUAL PERCENTAGE RATE SHOWS THE COST OF THE LOAN IN CASE OF DUE AND TIMELY REPAYMENTS UNDER THE AGREEMENT.
More detailed information on the interest calculation procedure is presented here.
Attention!
THE PLEDGED PROPERTY MAY BE FORECLOSED IF THE BORROWER FAILS TO REPAY LOAN AMOUNT AND INTEREST IN TIME. IF THE VALUE OF THE COLLATERAL IS INSUFFICIENT, OTHER PROPERTY OF THE BORROWER WILL BE ENFORCED TO REPAY THE BORROWER’S OBLIGATIONS.
Attention!
IF YOU FAIL TO PERFORM YOUR PAYMENT OBLIGATIONS WHEN DUE OR DO NOT PERFORM THEM PROPERLY, OVERDUE AMOUNTS SHALL BEAR FINES AND PENALTIES AS DEFINED BY AGREEMENT, AND THE INFORMATION ABOUT YOUR OVERDUE LIABILITIES WILL BE REPORTED TO CREDIT BUREAU WITHIN 3 BUSINESS DAYS. YOU ARE ENTITLED TO OBTAIN YOUR CREDIT HISTORY FROM THE CREDIT BUREAU ONCE A YEAR, AT NO COST.
When you repay your overdue debt, the payment will be made in the following order:
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Fines and penalties
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Interest
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Principal
YOUR BAD CREDIT HISTORY MAY AFFECT YOUR FUTURE LOAN APPLICATIONS.
Attention!
In case of loans in foreign currency, any change of the exchange rates may affect loan payments, while the annual percentage rate may change depending on the exchange rate published by the Central Bank of Armenia on its official page.
Definition of the annual percentage rate is based on the exchange rate published on the official website of the Central Bank of Armenia on the day of the agreement execution or the preceding business day.
Early repayment
In case of consumer loans, car loans, line of credit or overdraft the client has the right to repay the liabilities before the due date irrespective of whether or not such provision is included in the loan agreement.
Change of interest rates
The Bank is entitled to change the interest rates depending on the volatility of the interest rates on the funds borrowed and/or allocated by the Bank in the financial market, and/or occurrence of preconditions for the change of annual interest rate applied to the loan. The Bank shall inform the borrower of any change in the nominal interest rate made at the sole discretion of the Bank in advance, within the term specified in the agreement (at least 7 days in advance), via the channels specified in the agreement, which shall serve as a basis for applying the new terms from the date specified in the notice. If not consenting to the new interest rate, the borrower may terminate the respective agreement before the maturity date, repaying the liabilities to the Bank under such agreement in full.
Consumers are allowed to cancel the credit agreement at their own discretion, for no particular reason, within 7 business days following its execution unless a shorter period is stipulated therein (cooling-off period). In such cases, consumers are required to pay the interest accrued at the annual percentage rate under the credit agreement. The consumer will not be required to pay any other reimbursement in relation to the cancellation of the credit agreement.
What may help you to get your loan approved
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Long-standing relationship between the Bank and the client
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Business reputation
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Other
Why your loan might be rejected
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The information (documents and other data) provided by the borrower is not trustworthy or complete.
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The borrower's declared income is not sufficient to cover the liabilities.
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The borrower has bad credit history, delinquent and/or classified liabilities (including to third parties).
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Other
Updated 07.05.2020, 17:19
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