Micro business Loan

Attention

• Loan interest is calculated for 365 calendar days. If the payment date is non-working, then the payment should be done during the next working day.
• For residential mortgage loans you can make full or partial early repayments. No early repayment fee is applied by the Bank for this case.
• In case of deviation from the loan schedule reverence rate set by the Central Bank of RA can be applied on the overdue amount of the loan as stipulated by the loan agreement.
• Prior to signing loan agreement you have the right to review the loan oferta.
• Loan interest amount is being calculated based on the NOMINAL INTEREST rate, whereas the ANNUAL PERCENTAGE RATE indicates how much would loan cost to you in case of repayment of interest amount and other payments under the defined timeline and terms. You can get acquainted with annual percentage rate calculation logic (Regulation 8/01 of CB of RA) in the official website of the Central Bank of RA (www.cba.am).
• The Bank will provide you with statements for the loan account via your preferred channel with 30 day periodicity in the manner and terms stipulated by the RA legislation.
• You can present to the Bank any complaint that you have during the term of the loan. The complaint handling process can be found via the following link www.evoca.am as well as at the Bank’s premises. You can present the complaints/claims derived from the agreement to the Financial System Mediator as stipulated by the RA legislation. You can protect your rights by applying to Court as well. The process of protecting your rights can be found via  www.evoca.am website as well as in “What to do if you have a complaint” leaflet located at the Bank’s premises.
• ATTENTION: IF YOU DON'T MAKE YOUR LOAN MONTHLY REPAYMENTS IN LINE WITH THE LOAN SCHEDULE OR MAKE THEM PARTIALLY, THE BANK WILL SUBMIT YOUR DETAILS (INFORMATION ABOUT NOT MEETING OBLIGATIONS, PARTIALLY MAKING PAYMENT) TO CREDIT BUREAU IN THREE WORKING DAYS.
• Improper or nil fulfillment of obligations will have negative impact on your CREDIT HISTORY. CREDIT HISTORY is the set of information regarding the fulfillment of your financial obligations which is collected, accumulated, and is regularly updated by the Credit Organizations who have granted the loan to you and/or Credit Bureau. Credit history is assessed by the lending companies while reviewing your loan applications and has material impact on the loan decision-making process.
• In case you do not properly meet you loan obligations you may be deprived of you over your property.
• IN CASE YOU DO NOT MAKE LOAN INTEREST AND PRINCIPAL PAYMENTS ON TIME THE PROPERTY CAN BE SEIZED BY LAW.
• In case of repayment of the obligations due to non-fulfillment of credit obligations in expense of the pledge, if the value of the pledge is not sufficient to cover your credit obligations, the Bank may repay the loan at the expense of other securities in accordance with the RA legislation.

Criteria for loan approval

Criteria for positive decision-making are the following:

• Acceptable from our side pledged property and guaranties
• Permanent residence
• Stable source of income
• Positive or neutral credit history
• Reliable and comprehensive documentation

Criteria for negative decision-making are the following:

• Submission of not reliable documentation
• Negative credit history
• Unsafety of the source of income (unstable income, income with unclear frequency)
• Failure to provide the necessary documents required for signing pledge agreements or guarantee consents.

State Duties and Other Expenses 

The following payments are available in case of secured loans:

• Valuation of the pledged property: AMD 10,000 – AMD 150,000 depending on the type of the property, square meters and tariffs of the valuating company. The payment is credited on the valuator’s account. The valuation is done prior to the loan provision.
• Notary service fee: AMD 10,000-AMD 30,000 (the payment is done at the Notary office)
• Property pledging registration fee: in case of registration of the pledge property starting from AMD 26,400, and in case of the registration of rights under trilateral agreement starting from AMD 71,400. The registration is done within 4 working days. To get familiar with tariffs for registration of right within shorter period of time please visit the website of the Cadaster Committee of the RA www.cadastre.am.
• Insurance of the pledged property (if needed). The property insurance should be carried by licensed insurance companies in the amount of 0.15%-2.5% of the loan’s outstanding balance. The insurance payment may vary each year depending on the loan’s outstanding amount and insurance annual tariff. The beneficiary of the insurance must be the Bank.

Example of Annual Percentage Rate Calculation

The Bank calculates Annual Percentage Rate (APR) for the loans granted. APR shows total expenditure of the loan expressed in annual rate of the provided loan and is calculated by using the following formula:

Where:

• i -   annual percentage rate
• A – the initial amount of the provided loan
• n – the consecutive number of the loan repayment
• N – number of the last loan payment
• Kn–the amount of n-th loan payment
• Dn – the period from the date of the loan provision till the n-th repayment date expressed in the number of days

Assume a bank grants loan to the consumer with the following terms:

• Loan amount: AMD 700,000
• Nominal annual interest rate: 18%
• Loan term: 12 months
• Loan repayment schedule: annuity ( the total sum of the principal and the interest amount is repaid in equal installments on monthly basis)

Loan provision fees:

• One-off loan application review fee: AMD 1,000

In case of loan repayment with annuity schedule, it is required to determine loan repayment’s monthly amount with the following formula:

Where:

• K – monthly fee
• A – the initial amount of the provided loan
• R – interest rate (monthly interest rate is marked, e.g. `(18/12) / 100 = 0.015
• P – loan term (in months)

Each month loan repayment amount will comprise:

In order to calculate the Annual percentage rate, the one –off loan application fee of AMD 1,000 is captured as K1. 

Hence, the loan’s Annual percentage rate will be calculated as following:

i = 0.1995 x 100= 19.95%

Considering the above terms offered by the bank Annual percentage rate will comprise 19.95%.

Fees not included in the calculation of Annual Percentage Rate:

• Notary registration fees
• Pledge registration fees
• Encashment fees

The list of valuation companies cooperating with the Bank

 The list of Insurance companies cooperating with the Bank

Dear customer,

We would like to inform you that prior to submitting loan application and signing loan agreement you can receive verbal information regarding the loan product you are interested in from our Bank staff by calling the Bank at +374 10 605555 number or visiting Bank’s premises.