All about obtaining a loan | Ameriabank
Նախորդ տարբերակին անցում կատարելու համար սեղմել   այստեղ

Be informed when taking a loan

What should I know before becoming a guarantor?

How can I view my credit account statements?

 

What should I know before becoming a guarantor?

If you become a guarantor you assume the responsibility for non-performance or improper performance of the borrower's credit obligations. If the borrower fails to pay the debt, you will bear joint and several or subsidiary responsibility to the Bank for repaying the outstanding loan. Note, that you will bear liability before the creditor to the same extent as the debtor, including interest, legal fees with respect to enforcement of debt and reimbursement of losses incurred by the creditor due to non-performance or improper performance of obligations by the debtor, unless otherwise specified in the Guarantee Agreement.

You are entitled to receive reimbursement from the borrower for the repaid debt, i.e. you may request the borrower to reimburse the amount paid to the bank, the interest and other expenses incurred as a result of taking responsibility instead of the borrower.

The Bank in its turn must notify you about the next repayment and any delay in payment.

The borrower’s failure to make the repayments when due will affect your credit history and you may appear in the Bad Borrower List. It may be difficult for you to get a loan in future.

How can I view my credit account statements?

To enable you to view your credit account statements, the Bank will provide you with credit account statements in agreed frequency and manner in accordance with the Armenian laws and regulations. Account statements may also be provided to you upon request. You may receive it by mail, email, Online Banking or in person at any of the bank’s branches.

Provision of statements, information and copies of documents 

Rates & fees

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

Free

Provision of more than 1 year-old account statements, copies of account statements or other documents kept in electronic form

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

Provision of more than 1 year-old account statement or other electronic document, by emailing to the customer without stamp

AMD 3,000 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

If ordered via Internet/Mobile Banking or Ameriabank website1

AMD 1,000 (VAT included)

Delivery of account statement

 By e-mail

Free of charge

By post within Armenia

AMD 1,000 monthly, VAT included

By post outside Armenia2

As per postal service bills

1Requests for references should be submitted at least one banking day in advance.

2 The delivery is provided by regular mail.

You have the right to communicate with a financial institution via the channel you prefer: by regular post or email. Email is the most convenient way to get information. It’s available 24/7, free from risk of loss of information stored on paper and is more confidential.

When is the collateral enforced (foreclosed on)?


When is the collateral enforced (foreclosed on)?

The collateral may be enforced (foreclosed on) if the borrower fails to repay the loan and interest when due. Should the value of the collateral be insufficient, the borrower's obligations will be repaid at the expense of other property owned by the borrower.

What is nominal interest rate and annual percentage rate (APR)?

How do the volatilities of exchange rates affect the loans in foreign currency?

What is the difference between annuity and differentiated payments?

What if I fail to repay the loan when due?

Can I repay the loan before the due date?

Can the interest rate change during the loan term?

What factors influence loan approval?

What factors influence loan rejection?

How long does it take to make a decision about my loan?

How long will the loan approval decision be valid?

 

What is nominal interest rate and annual percentage rate (APR)?

Loan interest is calculated based on nominal interest rate. The latter shows the annual interest accrued on the outstanding loan. Interest accrues on daily basis to the outstanding loan principal in the loan currency based on a 365-day calendar year.

The annual percentage rate (APR) shows the cost of the loan in case of due and timely repayments under the agreement.

The annual percentage rate (APR) shows the cost of the loan in case of due and timely payment of interest, loan disbursement and service fees.

The amount of interest is calculated based on the annual nominal rate and manner of the loan repayment.


How do the volatilities of exchange rates affect the loans in foreign currency?

Exchange rate volatilities may affect the installments in case of loans in foreign currencies.

The annual percentage rate may change depending on the change of the interest rate published on the official website of the Central Bank of the Republic of Armenia.

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.


What is the difference between annuity and differentiated payments?

At the time of signing of a loan agreement, you may choose the form of repayment, i.e. whether you prefer making equal payments each months or would like to repay the principal in equal portions each time in which case the interest will decrease monthly.

There are two forms of repayment: annuity and differentiated payments.

  • Annuity (equal payments).  In this case the client makes equal monthly payments consisting of portion of loan and a portion of interest.
  • Differentiated.  In this case principal is repaid each time in equal portions and interest decreases with each payment and accrues on outstanding loan.
  • Mixed.  The client may choose an individual repayment schedule based on seasonality of cash flows, provided that at least 20% of contractual loan amount is repaid each year; interest is payable on monthly basis.

If you choose annuity, the total amount of payable interest will be higher than in the 2nd case. But in this case it is easier to plan the expenses, since the size of the installments is the same each month and you know exactly how much you are going to pay.


What if I fail to repay the loan when due?

If you fail to repay your obligations when due or repay them partially, you will have to pay fines and penalties specified in the agreement. If you fail to pay the overdue obligations within 3 business days, the information about it will be reported to the Credit Bureau. It may affect your credit history and it will be difficult for you to get a loan in future.

Note, that once a year you may request information about your credit history from Credit Bureau for free.

When you repay your overdue debt, the payment will be made in the following order:

1. Fines and penalties

2. Interest

3. Principal


Can I repay the loan before the due date?

Yes, in case of consumer loan, car loan, line of credit and overdraft you have a right to repay the loan before the due date, irrespective of whether it is specified in the loan agreement or not. If your loan exceeds AMD 15 million and you repay it fully or partially during the first three years of the term, you will be required to pay a fine in the amount of 5% of the early repaid amount (not applicable to loans secured by cash/bonds).


Can the interest rate change during the loan term?

The bank is entitled to change the interest rates depending on the developments in the financial market, volatility of the interest rates on the funds borrowed and/or allocated by the bank, and/or occurrence of preconditions for the change of annual interest rate applied to the loan.

In this case the bank must notify you about it at least 7 business days prior to such changes in the manner prescribed by the agreement. Such notification serves as a basis for applying the new interest rate from the date specified in the notification. If you do not consent to the new interest rate, you may terminate the respective agreement before the due date by repaying your obligations to the Bank under such agreement in full.

You have the right to terminate the loan agreement unilaterally for no particular reason, within 7 business days following its execution unless a longer period is specified therein (cooling-off period). This being the case, you will be required to pay the interest accrued at the annual percentage rate specified in the loan agreement. There are no other payments for termination of the loan agreement.


What factors influence loan approval?

The following might be considered positive factors which can influence loan approval:

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


What factors influence loan rejection?

Your loan application might be rejected if:

  • Presented information/documents/data appear to be non-trustworthy or incomplete
  • Your income is insufficient
  • You have a bad credit history, overdue and/or classified liabilities (including to third parties).
  • Other


How long does it take to make a decision about my loan?

The bank makes a decision on pre-approval of the loan within 2 (two) days upon receiving your loan application. It will take up to 8 business days upon receiving the complete package of required documents for the final decision. You will be notified about it via Ameriabank’s website or the contact person within 1 business day after the decision is made.

The loan will be disbursed to you if the following conditions precedent have been met:

    1. security agreements have been signed in accordance with the Armenian laws and regulations, such agreements prepared in form and substance satisfactory to the Bank

    2. the collateral has been insured (upon the Bank’s request) by an insurance company cooperating with the Bank

    3. the borrower has fulfilled other conditions of loan issuance.


    How long will the loan approval decision be valid?

    Once the loan is approved by the bank, you may finalize the lending process by accepting the terms approved by the bank in 45 business days. Only then the loan will be formalized and disbursed.

    Upon expiry of 45 (forty-five) calendar days after loan approval, the loan application will be subject to review again. You will be required to resubmit the necessary documents with a new term and the bank will make a new decision on the loan approval/rejection.

    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 SETTLEMENT RATE DECLARED BY THE CENTRAL BANK OF ARMENIA.

Attention! Loan interest is calculated at the nominal interest rate. The latter shows the interest accrued to the outstanding loan principle annually. The actual annual percentage rate (APR) shows the cost of the loan in case of due and timely repayments under the agreement.

The amount of interest depends on the annual nominal interest rate and method of loan repayment.

The loan may be repaid by one of the methods below:

  • Differentiated - repayment of principal in equal portions in which case monthly payments consist of equal principal amounts and varying interest. As a result of reducing the interest, the amount of your monthly payments decreases each month.
  • Annuity - fixed monthly installments, where the monthly payment throughout the repayment period remains the same and consists of a portion of loan and a portion of interest.
  • Mixed -  the client may choose an individual repayment schedule based on the seasonality of cash flows, provided that the amount of principal repaid each year makes at least 5% of contractual amount in case of loans for purchase/renovation/construction of residential and commercial property and investment loans.

If you choose to repay the loan by the 2nd method, the total amount of payable interest will be higher than in the 1st case.
The 2nd method, however, allows you planning your expenses, because you know the exact amount you’re going to pay each month.

 

If you repay your loan by differentiated method, the amount of monthly payment shall be calculated according to the following formula:

R = m / n + m * r % / 365 * o, where

R is your monthly payment
m is the loan principal
n is the loan term expressed in months
r is the annual interest rate
օ is the number of days in one month 

 

If you repay your loan by annuity, the amount of monthly payment shall be calculated by the following formula:

R = P x r / (1 – 1/(1 + r) n), where

R is your monthly payment
P is the loan amount
n is total number of loan repayments throughout the whole loan term (number of months)
r is a monthly interest rate which is equal to 1/12 of the annual interest rate specified in the loan agreement at the moment of loan disbursement
The amount of monthly payments is rounded to one decimal place.

 

The outstanding loan is calculated according to the following formula:

Pt = R x ((1 – 1/(1 + r) n) / r,
 where

Pt is the actual loan outstanding by the end of the term
R is your monthly repayment
t is the number of repayments due by the end of the loan term (number of months)
r is a monthly interest rate which is equal to 1/12 of the annual interest rate specified in the loan agreement at the moment of loan disbursement

Annual percentage rate may be calculated out of the following formula:

where
i is the annual percentage rate (APR)
A is the loan principal (the amount initially provided by the lender to the borrower)
n is the sequence number of loan payment
N is the sequence number of the last payment
Kn is the amount of nth payment under the loan
Dn is the number of days from the day of loan disbursement up to the day of the nth payment
The annual percentage rate “i” may be calculated, if the other data of the equation are available from the loan agreement or another source.

APR calculation example

Loan facility: consumer loan secured by property
Principal loan amount: AMD 15,000,000
Annual interest rate: 17%
Term: 60 months
Repayment method: annuity (fixed payments consisting of a portion of a loan and a portion on interest)
Loan disbursement lumpsum fee: AMD 75,000
Insurance fee: 0.16% of the outstanding loan principal every year
Real estate appraisal fee: AMD 15,000
Fee for the unified reference on absence of encumbrance on the real estate: AMD 10,300
Pledge agreement notarization fee: AMD 13,000
Fee for state registration of security interest: AMD 26,000
Start day: 16/09/2014
First payment day: 11/10/2014
Annual percentage rate: 19.14 %

Annual percentage rate is defined on the basis of its constituent conditions, is provisional and may change throughout the validity term of the agreement depending on the early repayment of the loan by the borrower and changes in constituents. 

Interest Calculation: Representative Example
Principal loan amount: AMD 1,000,000
Annual interest rate: 20%
Loan term: 36 months
Daily interest will make 1,000,000*20/100/365=548 AMD.
Monthly payment in case of repayment by annuity will make AMD 37,163.6 AMD.

Last updated on 11.10.2021 13:59