For Individual Clients

Credit line with credit cards


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 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

 

  1. 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.
  2. 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.
  3. If the client does not make repayment, utilized amounts bear interest starting from the first day withdrawn.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.
  4. 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.
  5. 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: 

  • security agreements have been signed in accordance with the Armenian laws and regulations, such agreements prepared in form and substance satisfactory to the Bank,  
  • the collateral has been insured (upon the Bank’s request) by an insurance company cooperating with the Bank,  
  • the borrower has fulfilled other conditions of loan issuance. 
 
 Once the Bank makes a loan decision, if the client. 
  • 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.
  • 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

 

  • Long-standing relationship between the Bank and the client
  • Business reputation
  • Turnover of the client's funds through Ameriabank accounts 
  • Average balance on the accounts with Ameriabank, etc. 

 

 

Why your application might be rejected

 

  • The information (documents and other data) provided by the borrower is not trustworthy or complete.
  • The borrower's declared income is not sufficient to cover the liabilities.
  • 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 (both debit and credit cards):

 

Currency

Interest rate

Credit limit/Deposit principal (LTV) [1]

Same as deposit currency

Deposit rate + 4%

Up to 90%

Other than deposit currency

According to the tariffs for credit lines via cards

Up to 70%

 

[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!

 
 

 

Credit Line on Credit Cards

Who may apply

Citizens and non-citizens of Armenia who are resident in Armenia and are aged 18-65

Loan purpose

Payments

Currency

AMD

USD

EUR

Form of disbursement

Loan is disbursed in non-cash form by crediting the amount to the card account.

Maximum amount of total unsecured liabilities (including liabilities to other banks and credit organizations)

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

Loan term

48 months - before the borrower reaches 65

Lending limit**

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.

Card type 

Annual interest rate [1]

Minimum and maximum credit limits

Annual service fee

Card package service fee

Master Card Standard/VISA Classic 

 

21%

 

18%

 

16.5%

 

AMD 100,000 - AMD 1,500,000

 

USD 200 - USD 5,000

 

EUR 200 - EUR 5,000

AMD 2,500

-

Master Card Gold/VISA Gold/ 

 

20%

 

17%

 

15.5%

 

 

AMD 1,500,000

 

USD 5,000 - USD 15,000

 

EUR 5,000 - EUR 15,000

 

AMD 2,000 monthly/ AMD 20,000 annually

AMD 1,500 monthly/ AMD 15,000 annually

Master Card Platinum/VISA Platinum 

 

20%

 

17%

 

15.5%

 

 

AMD 5,000,000 - AMD 20,000,000

 

USD 15,000 - USD 50,000

 

EUR 15,000 - EUR 50,000

 

AMD 3,000 monthly/ AMD 30,000 annually

AMD 2,000 monthly/ AMD 20,000 annually

VISA Infinite 

 

 19%

 

16%

 

14.5%

 

 

AMD 7,500,000 - AMD 100,000,000

 

USD 15,000 - USD 200,000

 

EUR 15,000 - EUR 200,000

 

AMD 10,000 monthly/ AMD 100,000 annually

Effective rate

AMD

20.7-23.1%

USD

17.2-19.6%

EUR

16.1-18.4% 

Increase of credit limit of card

AMD 5,000

Repayment frequency

Monthly

Grace period

Up to 51 days

Interest calculation

If the client repays the whole amount utilized in one month during the grace period, no interest accrues.

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.

Minimum payment required

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

Security

The bank may request guarantee of individuals and/or companies as security.

Guarantee

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.

Late payment fines and penalties

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.

Loan formalization venue

Bank

 

[1] 

                - Nominal interest rate: 14% - 21% 

                - Effective rate: 14.81 - 23.15%

 

 

Loan service fees

 

Purpose

AMD

Modification of the loan terms

15,000

Change of the loan repayment date

5,000

 

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

 

Required documents filed together with loan application

  • Loan application
  • ID (original)

Documents required after initial approval

  • Proof of employment and/or other income
  • Other documents as the bank's specialist may request

 

 

 

 

 

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. 

 

Provision of statements, information and copies of documents 

Service

Provision of account statements, copies of account statements or other documents kept in electronic form, backdated up to 1 year

Free

Provision of account statements or copies of account statements backdated more than 1 year or other documents kept in electronic form7

AMD 5,000 per annual statement per account, VAT included

Provision of copies of documents kept in paper or backdated more than 1 year and kept in electronic form

AMD 5,000 per document, VAT included

Provision of references

 

To holders of 3+ months old accounts6

AMD 3,000, VAT included

To holders of less than 3 months old accounts

AMD 5,000, VAT included6

 

 

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!

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:

  1. Fines and penalties  
  2. Interest  
  3. 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

 

  • Long-standing relationship between the Bank and the client
  • Business reputation
  • Other 

 

 

Why your loan might be rejected

 

  • The information (documents and other data) provided by the borrower is not trustworthy or complete.
  • The borrower's declared income is not sufficient to cover the liabilities.
  • The borrower has bad credit history, delinquent and/or classified liabilities (including to third parties).
  • Other 

 

 


 


Updated 19.02.2020, 11:51

Services for Individuals

  
HEAD OFFICE

2 Vazgen Sargsyan Street, Yerevan 0010,RA

Tel.: +37410 56 11 11

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+1 888 802 5352

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