Loan with pledge of gold "Three 9"
The loan is provided by "Converse Bank" CJSC (hereinafter the Bank) to RA citizens and/or resident individuals under the following conditions:
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Loan currency and amount |
Minimum amount – AMD 50,000 or equivalent in USD/Euro Maximum amount is not defined
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Loan type |
Loan or credit limit |
Credit limit |
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Method of loan and intrerest repayment 1 |
Maturity term |
LTV2 |
Annual interest rates |
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Type |
Currency |
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AMD |
USD |
Euro |
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Annuity repayment /equal monthly repayment/ |
6 - 60 months |
131 - 150% |
nominal |
18.00% |
14.00% |
13.00% |
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actual |
19.35 - 19.76% |
14.78 - 15.08% |
13.66 - 13.94% |
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101 - 130% |
nominal |
17.00% |
13.00% |
12.00% |
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actual |
18.19 - 18.57% |
13.66 - 13.94% |
12.55 - 12.81% |
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100% |
nominal |
15.00% |
12.50% |
11.50% |
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actual |
15.91 - 16.24% |
13.10 - 13.37% |
12.00 - 12.24% |
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Interest – monthly Principal amount- 1% monthly, the balance - at the end of the maturity term
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nominal |
16.00% |
- |
- |
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actual |
17.21 - 17.23% |
- |
- |
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95% |
nominal |
- |
13.50% |
12.50% |
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actual |
- |
14.35 - 14.37% |
13.23 - 13.24% |
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Interest – monthly Principal amount- at the end of the maturity term
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3 - 12 months |
nominal |
14.50% |
13.50% |
12.50% |
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actual |
15.50% |
14.37% |
13.24% |
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Interest – in advance Principal amount - at the end of the maturity term
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nominal |
- |
12.50% |
11.50% |
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actual |
- |
13.54 - 14.29% |
12.37 - 13.00% |
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100% |
nominal |
14.00% |
- |
- |
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actual |
15.31 - 16.28% |
- |
- |
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Other commission fees |
No loan disbursement or service fees are charged |
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Loan security |
- Pledge of gold items - White gold is not accepted as collateral - Valuables, regardless of their type, are treated as scrap gold, not as jewelery / artwork
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Notes |
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1The credit limit on the card can be used within 1 month from the date of issuance. Repayment starts after the end of the deadline for limit using, on the nearest preferred repayment date specified in the agreement signed by the customer. 2In case of financing, which exceeds 100% LTV ratio, the following restrictions shall apply: 1. The number of credit enquiries made for the purpose of granting a loan during the month preceding the moment of consideration of the application should not exceed 6. 2. At the time of consideration of the application, there should be no overdue liabilities, and during the 12 months prior to the consideration of the application, there should be no loans classified stricter than "standard" (including guarantees), and the total number of overdue days for all available loans should not exceed 20. 3. The number of loans with pledge of gold granted to the same person and to be newly granted should not exceed 3, and the total balance should not exceed AMD 5,000,000 or equivalent in foreign currency. 4. The maximum limit of the total amount of loans with pledge of gold exceeding 100% LTV ratio granted by the Bank to one person can be reduced to AMD 3,000,000 or equivalent in foreign currency. 5. The applicant must have a positive history of a loan repayment other than a loan secured by gold items within the last two years. 6. Standardized and/or non-standard gold bars, gold items that do not present aesthetic value, for example, damaged jewelry, jewelry from which the stones ensuring the complete aesthetic look have been removed, cannot be pledged. |
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You can get acquainted with the current prices of one gram of pledged gold according to carats (as scrap) following the link.
General provisions and conditions
Early repayment
The customer has the right to unilaterally terminate the loan agreement without any reason within 7 working days after its conclusion, unless the loan agreement provides for a longer period (time to reconsider). In this case, in order to use the loan amount, the customer shall pay interest to the Bank, which is calculated in accordance with the annual actual interest rate stipulated in the loan agreement. No other compensation may be claimed from the customer in connection with the termination of the loan agreement.
The customer has the right to fulfill (repay) the obligations stipulated in the loan agreement ahead of schedule, regardless of whether such a right is stipulated in the loan agreement or not.
In case of early fulfillment (repayment) of the obligations under the loan agreement, the total cost of lending will be proportionally reduced, including the total interest payable according to the loan agreement and loan disbursement fees.
Fines and penalties
In case of breach of the repayment terms stipulated in the contract, the Borrower shall pay a fine to the Bank at the rate of 0.13% of the overdue sum for each day of default.
Repayments of overdue liabilities are repaid in the following order: fine/penalty, interest, principal amount.
No fines or penalties are envisaged for early repayment of the loan.
Extension of loan maturity term
The loan maturity term can be prolonged only on the basis of the Bank's decision, in accordance with the lending terms and rates applicable in the Bank as of the date of extension, provided that:
• at the time of extension, the borrower has repaid all the interest amounts specified in the payment schedule and at least 50% of the principal amount,
• at the time of extension, the borrower has no overdue liabilities in the Bank,
• in case of loans of up to 1 million AMD, during the preceding year, all the borrower's loans in the Bank should not be classified with a stricter class than "standard", as well as the total amount of delay days should not exceed 60 days,
• in the case of loans with an amount equivalent to AMD 1 million or more, according to the ACRA credit bureau report, the borrower should not have a loan classified with a stricter class than "standard", as well as the total amount of delay days of all loans should not exceed 60 days.
Example of calculating interest rates
• In case of loan with the following terms and conditions:
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Loan amount |
AMD 1,000,000 |
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Nominal interest rate |
15% |
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Repayment period |
60 months |
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Repayment type |
Annuity |
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Monthly repayment (principal amount+ interest) |
23,789.93 |
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Total amount of interest |
427,395.81 |
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Total amount of repayments |
1,427,395.81 |
Loan interest is calculated based on the nominal interest rate applied to the deductible balance, and the actual annual interest rate shows how much the loan will cost you when you make timely interest payments and all the related mandatory fees and payments related to loan disbursement.
The procedure for calculating the annual actual interest rate can be found at the following address:
Communication with the Bank
You have the right to communicate with Converse Bank CJSC in any format at your discretion - by postal mail or by electronic communication methods. It is most convenient to receive information electronically, as it is available 24/7, free from the risk of loss of paper-based (hard copy) information and ensures confidentiality.
Provision of statements, references and other information (including VAT)
• Provision of statement with periodicity prescribed by RA legislation in the customer's preferred way - 0,
• At the customer’s choice, issuance of additional electronic statement in periods set under the RA laws and/or the agreement in the manner and for the period preferred by the customer (once for each period) - 0
• Provision of a statement in addition to the periodicity specified in the previous paragraphs 1:
- Dated back up to 3 years - AMD 1,000,
- Dated back to 3 years and more (in case it is available in the Bank ) - AMD 3,000
• Statement1 for submitting to different institutions
- In case of accounts opened within a month 2 - AMD 5,000
- In case of accounts opened earlier - AMD 3,000
• Reference based on the application submitted through the Bank's website - 3,000 AMD
• References / Letters / Statements on transactions made
- For transactions dated back up to one month - AMD 3,000
- For transactions dated back more than one month - AMD 5,000
• Transaction support documents and copies of other documents (for each document)
- Dated back up to 1 month - AMD 1,800
- Dated back up to 1 year - AMD 3,000
- Dated back more than one year - AMD 12,000
Tariffs for other services (including VAT)
• Post delivery of statements and other documents
- Intra-republican: 0
- International
- In cases under the law and the agreement: Delivery service provider’s tariff
- In other cases: Delivery service provider’s tariff + AMD 1,500
• Through outsourced delivery service provider
- In country and cross country: AMD 3,000
- International: Delivery service provider’s tariff + AMD 5,000
• Confirmation and acceptance of the signature on the power of attorney provided by the individual customer of the Bank: AMD 3,000
• Revision of loan terms3: 0.5%, min AMD 12,000
1 In case of simultaneous provision of a statement and reference to the same Customer and charge envisaged for the reference, the charge will be collected for reference only.
2 In case of more than one active account, the opening date of account which has been opened earlier is taken into consideration irrespective of whether or not included in the statement.
3 The tariff is calculated based on the amount of loan provided. The tariffs are set at the time of submission of the application by the customer for revision of the loan terms.
Required documents
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1 |
Loan Application Form |
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2 |
Identity document of the borrower, Public Service Number or a reference from the State Register of Population on not receiving PSN (not required if identification card is provided, where PSN is stated). |
Credit history
Credit history is a collection of data on the financial obligations of an individual or legal entity, which shows the history of the latter’s financial obligations or their fulfillment. It is essential because after applying for a loan, the bank or credit organization, before making a decision on granting a loan, analyses the applicant's credit history and evaluates how responsible the latter is as a borrower.
The credit history includes data on 5 year-period prior to the date of inquiry, and is made from information on:
• Financing received by the person, including:
- their number and amount,
- the amount, type, terms of each financing, the nominal interest rate applied by the creditor,
- the information on collaterals securing loan/financing.
• Fulfillment of loan repayments (for example, whether the interest and principal amount repayments were duly paid or not),
• Guarantees provided to other persons, their number and amount, the type of loan secured by each guarantee, terms and information regarding collaterals,
• Overdue days/amounts in terms of financing and guarantees, as well as the penalties and fines charged for them,
• Unpaid or late utility bills.
Credit history does not contain personal data, such as a person’s ethnicity, religious and political views, social status, etc.
If there are incorrect or incomplete data in the credit history, for the purpose of clarification and correction, the borrower can inform about it "ACRA Credit Reporting" CJSC, hereinafter also Credit Bureau, or directly contact the financial organizations providing information. People can address credit bureau by submitting an appropriate written application or electronically, online from the personal office "My ACRA".
The process of accepting/receiving, discussing and responding to customer complaints regarding credit reports provided by the credit bureau, the sequence of actions is defined by the "Procedure for Dispute Resolution" of "ACRA Credit Reporting" CJSC.
For more details follow the links: www.abcfinance.am and www.acra.am links.
Measures to take to improve the credit history and scoring
In order to improve credit history and scoring, it is necessary to eliminate the main causes of their deterioration, in particular, to pay off current overdue obligations as soon as possible, as well as:
• ease the credit burden by partially or fully repaying existing loans,
• make repayments in accordance with the established schedule, excluding delays and showing punctuality,
• reduce the given guarantees by decreasing their number and amount, as well as, if available, ensuring the full repayment of overdue obligations,
• avoid even one-day delays in fulfilling obligations on current loans and not to become a guarantor for unreliable persons,
• avoid applying for new loans frequently.
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Attention |
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The actual annual interest rate and the size of the loan repayments may change due to changes in the exchange rate. During the period of loan disbursement and service, the borrower has the right to authorize any third party to receive the pledged gold items from the Bank, provided that the loan obligations are fulfilled, under the conditions set by the Bank. The presence of a third person is mandatory when submitting the power of attorney. |
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In case of full repayment of the loan, the pledged gold is returned to the pledger on the same day, if the client has met the deadline set by the loan agreement, and on the next working day in other cases. |
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If you fail to fulfill or incompletely fulfill your obligation, within three business days this information will be provided to the credit bureau where your credit history is formed. Having a bad credit history can negatively affect your creditworthiness in the future. You have the right to receive your credit history report for free once a year from the credit bureau. |
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Your property may be confiscated by law if you fail to make your interest and loan repayments on time. If the amount received from the realization of the pledge is not sufficient to repay (cover) your credit obligations, they can be paid off at the expense of your and/or other property of the guarantor, in accordance with the RA legislation. |
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In accordance with the RA Law on Combating Money Laundering and Terrorist Financing, on the basis of the Know Your Customer Principle, the Bank may require the Customer to provide additional documents or other information, as well as ask questions during verbal communication, for the purpose of conducting due diligence of the Customer. |
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The Bank may collect additional information in accordance with the terms of an agreement with the US Government under the Foreign Account Tax Compliance Act (FATCA) to determine your eligibility for being a US taxpayer. |
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The Bank is entitled to modify and supplement the tariffs for services provided by notifying the Customers in accordance with the contract, by posting a relevant message on its own website (www.conversebank.am), by posting announcements on the Bank's premises, by sending a notification by post, and by any other methods proposed by the Bank selected at the Customer's preference, which is considered a due notification of the Customer. |
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When applying for a loan up to AMD 15 million or equivalent in foreign currency, the Bank will provide you with an Essential Terms sheet for credit lines, which will contain the individual terms of the loan to be provided to you. |
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Factors for positive or negative decision on providing the loan
The Bank is inclined to provide the loan if:
• The applicant complies with the terms and restrictions of the loan.
• At the request of the bank, the applicant secures its credit liabilities with a pledge.
• The applicant's credit history is either positive or missing.
Failure to comply with any of the above conditions, as well as other requirements of the Bank's internal regulations, may result in refusal to provide the loan.
Time periods for notifying the customer on the decision to grant the loan and its disbursement.
The decision to provide a loan, informing the customer and disbursing the loan is carried out on the day of application.
Venue for loan formalities and method of disbursement
The loan is provided at the Bank's branches, except for the following: "Sayat-Nova", "Moskovyan", "Davtashen", "Zeytun" and "Kotayk".
The loan amount is provided non-cash, by transferring it to the account.
Credit cards with a non-renewable limit are issued through the ArCa Classic card, which cannot be used for other purposes later. The terms and conditions for issuing and using cards are introduced on the website.
Your financial directory
Your financial directory is an electronic system combining services offered to individuals that makes it easy to search, compare and find the most effective option for you at: https://www.fininfo.am/vosku-vark
Procedure for resolving disputes
Any disputes and disagreements between the Customer and the Bank shall be resolved first by mutual negotiation, and should the agreement not be reached by such methods, the disputes and disagreements shall be resolved in accordance with the procedure prescribed by the RA legislation both per court procedure, and through financial system mediator.
Notice on Financial System Mediator
Please be informed that according to the RA Law on Financial System Mediator, in case of property claims arising out of services rendered to you by Converse Bank CJSC, disputes and disagreements for not exceeding 10 million AMD or equivalent in foreign currency may be resolved through the Financial System Mediator.
According to an agreement between the Bank and the Office of the Financial System Mediator, the Bank waives the right to challenge the Financial System Mediator's decisions only in relation to property claims not exceeding AMD 250,000 (two hundred and fifty thousand) or equivalent in foreign currency, and on transaction amounts not exceeding AMD 500,000 (five hundred thousand) or equivalent in foreign currency.
Address: 0010 Yerevan, Khorenatsi str. 15,
"Elite Plaza" business center, 7th floor
Email: [email protected]
Telephone: (+37460) 70-11-11
Fax: (+37410) 58-24-21
How to contact with the Bank
For more details and information you can:
• visit the Bank's website at https://www.conversebank.am
• visit the Bank's Customer Service at the Head Office or any branch
• call: +374 10 511211
WhatsApp: +374 95 511211
Skype: conversebank-callcenter
The loan is disbursed at the head office and the branches.
Updated on 02.04.2024