• Production (or construction), distribution (or processing) and sale of weapons, ammunition, military or police equipment or infrastructures, or such equipment or infrastructures that restrict the individual rights and freedoms (such as places of detention)
•  Organizing gambling and/or production (or construction), distribution (or processing) and sale of other equipment related to the above.
•  Production (or construction), distribution (or processing) and sale of tobacco products/devices.
•  Activities where live animals are used for the purposes of conducting research and scientific tests, unless the requirements of the Council of Europe (CoE) Convention for the Protection of Vertebrate Animals used for Experimental and other Scientific Purposes are met.
•  Activities prohibited by national legislation (if any). Examples: genetically modified organisms, pregnancy termination clinics, etc.
•  Activities that result in significant environmental risks that are not normally mitigated and/or compensated (including, but not limited to, projects implemented in protected areas, cultural heritage sites, etc.).
•  Activities that are ethically or morally controversial or prohibited by national law, such as sex trade, related infrastructure, human cloning related research, etc.
•  Production and/or sale of goods infringing trademarks or geographical indications in the EU area ("counterfeit goods").
•  Acquisition, construction or renovation of real estate for sale or rent.
• Consumer loans
•  Purely financial activities, such as buying and selling financial instruments.
•  Business taxes such as value added tax, import/export taxes and duties. Expenses related to patents, quotas, production permits and other rights issued by the relevant authorities also cannot be financed under the Loan Program.
•  Acquisition of land, unless it is technically required for the implementation of the Loan Program, and does not exceed 10% of the Loan Program.
• Acquisition of land for agricultural purposes.

 List of payments made by the borrower (in case of pledge) 

 Fines and penalties

Following fines and penalties may be applied by the Bank

1.  In case of overdue loan and / or overdue interest, 0.13% of overdue amount for each day of delay.Repayments of overdue liabilities are repaid in the following order: fine/penalty, interest, principal amount.
2.  In case of violation of any of the conditions for loan disbursement, increase the effective interest rate of the loan by 4 percentage points.
3.  When early repayment of the loan is made prior to the mid-validity period, a penalty of 5% is imposed on the early repaid amount.

Frequency and method of repayment of principal and interest

It can be done in one of the following ways:

1. Annuity (Equal monthly repayment), with principal and interest accrued in variable portions.
2. "Spring" (decreasing monthly repayment), in which the principal amount is included in equal portions, and accumulated interest is variable.
3. "Flexible" , in which the principal amount of the loan is repaid based on the specifics of the activity, and the interest payments are made on monthly basis.

Collateral security

Movable and immovable property, pledging of tangible and intangible property not prohibited by the legislation of the Republic of Armenia, and if necessary, a guarantee.

Loan/collateral ratio

The maximum loan/realisable value of collateral ratio is set at 70%, however, depending on the type of property pledged as collateral, the following restrictions apply:

• Real estate: 70% (60%, if the real estate pledged as collateral is owned by a legal entity or sole proprietor),
• land: 50%,
• Passenger vehicles:
  - 70% - with date of manufacture up to 10 years ,
  - 50% with with date of manufacture of 11-15 years,
  - 30%, if the pledged vehicle will be operated as a taxi,
• equipment and special non-passenger vehicle - 50%
  Commercial loans secured by gold items as collateral, are provided in the amount of up to 100% of the estimated value of the collateral.

Explanatory information on the guarantee

If the borrower fails to fulfill his/her obligations, the guarantor will pay on behalf of the borrower, the guarantor's credit history will deteriorate as well, and the guarantor may be deprived of his/her property.

Converse Bank:
• Will provide the guarantor with an example of loan and guarantee agreements and a repayment schedule,
• The communication will be carried out in the manner chosen by the guarantor,
• notify at least 7 days in advance of the change in the terms of the contract,
• Will send reminder of existing obligation 1 day in advance
• In case of delayed repayment of the loan, will notify the guarantor not later than within the following day.

The guarantor has the right to:
• At any time request the Bank for information on the size of the loan balance,
• get a refund of loan-related payments made, as well as of other losses incurred on behalf of the borrower.

Valuation of collateral

The pledged real estate and movable property is subject to appraisal by one of the property valuation companies cooperating with the Bank. The valuation company is selected by the Customer. The report on appraisal of market/realisable value of the property is valid for 2 months from the report date. An additional revaluation may be required if necessary (e.g. price changes).
In case of pledged gold items, the valuation is performed by a Bank employee.
In case of purchase of vehicles, construction and agricultural equipment and other equipment from the primary market, the amount specified in the purchase contract or invoice may be taken as a basis for the estimated market value.

List of valuation companies

Pledged property insurance

The Bank may require collateral insurance based on the purpose of the financing, the transaction or the description of the pledged property.
Casco insurance is applied in case of pledge of motor vehicles.
Insurance is carried out at the estimated market value for the entire financing period (unless otherwise provided by the Bank decision) by the insurance company cooperating with the Bank.

List of insurance companies

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 information and ensures confidentiality.

Provision of statements, references and other information (including VAT)

• Provision of single statement (regardless of periodicity): 0,
• For a duplicate ¹

- Dated back up to 1 month - AMD 1,800
- Dated back from 2 months up to 1 year - AMD 3,000
- Dated back from 1 year up to 3 years - AMD 12,000
- Dated back to 3 years and more (in case it is available in the bank ) - AMD 24,000

• 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

• References / Letters

 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
 Notice of agreement on consecutive pledge/alienation of property pledged in the Bank - AMD 6,000 for each pledged property

• 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)

• Mail delivery of statements or other documents

- Within Armenia and Artsakh- AMD 500
International
- Tariff set by the shipping service provider, if established by law and contract.
- In other cases, the fee set by the shipment service provider + AMD 1,500

• Delivery of references or other documents via Ordered mail shipping

- Within Armenia and Artsakh- AMD 3,000
- International - fee set by the shipment service provider + AMD 3,000

• Provision of Bank consent for registration of individuals at the address of pledged real estate (regardless of number of registered persons) - AMD 3,000
• Granting consent for modification of documents on real estate property pledged with the Bank³: 0.5%, minimum AMD 12,000 , maximum AMD 60,000
• Granting consent for the lease of pledged real estate property- AMD 12,000
• Grant of consent to change the registration plates of the pledged car - AMD12,000
• Granting consent for the lease of pledged vehicle - AMD 8,000
• Partial release of pledged property based on the application of the pledgor or the borrower (except for the pledge of cash as well as unallocated metal accounts) - AMD 20,000 (per property)
• Loan terms revision⁴ - 0.5%, minimum AMD 6,000

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 shall be calculated on the basis of the estimated initial value of the collateral.
⁴ 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.

List of required documents

• Loan Application Form
• ACRA inquiry, guarantee consents
• Identification document of applicant individual entrepreneur, executive body of legal entity, authorized person, participant, real beneficiary, pledgor, guarantor (for a legal entity - founding documents), Public Service number or statement on not obtaining PSN (not required if identity card is submitted)
• Charter, state registration certificate with all inserts, and Taxpayer Identification Number
• In case of a joint stock company, a statement from the depositary on the shareholders
• Document certifying ownership title for the property offered for pledge, the basis for the acquisition and the identity document of the owner
• Тax reports for the past one year
• Statement on tax liabilities
• Ownership Certificate or Lease Contract for the place of operation, or other evidence of entitlement to the customer's place of business (e.g., statement from the village administration)
• Initial and basic collateral valuation (revaluation) report (after loan approval) report or a basis for determining the value of the proposed collateral
• Extract from the resolution protocol of general meeting or sole participant on acquiring funding, pledging of property, provision of guarantee
• Collateral insurance certificates (for insurance claim - after loan approval)
• Statement on limitations (after loan approval)
• Other documents as needed

 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 limiting conditions of the loan,
• At the request of the bank, the applicant secures its credit liabilities with collateral,
• The applicant is recognized as creditworthy as a result of the assessment,
• The documents submitted by the applicant are reliable and include all necessary information;
• 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 of the decision to provide the loan and for the loan disbursement.

•The decision-making proces takes a maximum of 10 banking days.
•The Customer is informed within one day.
•Loan agreements are concluded within a maximum of 3-5 banking days after the Client submits the complete package of documents to the Bank.
•The actual loan is provided to the client as soon as he/she receives the certificate on the right to pledge from the relevant state bodies.

Venue for loan formalities and method of disbursement

Loan is provided at Head Office and Branches
The loan amount is disbursed to the borrower by way of depositing it to the borrower's bank account.

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 obmudsman.

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 million AMD or equivalent 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 250,000 (two hundred and fifty thousand) AMD or equivalent currency, and on transaction amounts not exceeding 500,000 (five hundred thousand) AMD or equivalent 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:

Contact with the Bank
For more details and more 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
Viber: 374 95 511211
Skype: conversebank-callcenter