[i] Maximum annual interest rate cannot exceed 24%. The overdue loan/line of credit/overdraft will continue to bear the interest rate specified in the loan agreement.
[ii] Whenever applied, the maximum annual rate or aggregate amount of fines and/or penalties under the Agreement shall be within the limits defined under the legislation of the Republic of Armenia.
[iii] Where the guarantee is the main security and there are pledged items as well, the loan-to-value ratio is not applicable. This being the case, the nature of security (main or additional) is specified in the loan conclusion and approved by the authorized body.
[iv] Loan modification fee is payable by the client in case the application for revision of the terms was submitted by the client at their initiative and approved by the bank. The fee is paid based on analysis and conclusion prepared by the relevant department of the bank for the client’s application. Generally, in other cases of modification of the loan terms, charging of the fee will be subject to the decision of the bank’s authorized body.
Calculation of interests
Attention! Interests are calculated on outstanding amount on daily basis for a 365-day year.
Used overdraft limit – 1,000,000 AMD
Annual interest rate – 15 %
Daily interest calculation – 1,000,000*15%/365=410.96
Change of interest rates
The bank is entitled to change the interest rate at any time 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 issues a respective notice to the borrower 30 days in advance which will serve as a basis for applying the new interest rate from the day specified in the notice. If not consenting to the new interest rate, the borrower has the right to terminate the agreement by fulfilling the liabilities thereunder as of the date of termination. SME overdrafts are provided in non-cash form in AMD, USD and EUR.
When applying for a loan, be informed.