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

Fines and Penalties
1. Upon default of due dates under the Agreement, the Borrower pays the Bank a penalty at 0.13% per day of delay.
Upon repayment of overdue liabilities, the payments are made in the following sequence: penalty – interest – principal.
2. Penalties and fines are not applied in case of early repayment of the loan.

Frequency and method of repayment of principal and interest

The repayment of the principal amount is carried out at the end of the term, and the interest payments are made monthly.

Security

Pledge of movable and immovable property, tangible and intangible values not prohibited by RA legislation and also guarantee, if necessary.

Loan to Value Ratio/LTV
Up to 100% of the estimated value of the collateral, depending on the type, purpose, location, year of construction/production of the pledged property, the maximum share of the collateral in the total collateral, and specific features of financing.

Explanatory notes on the guarantee

If the borrower fails to fulfill his/her liabilities, 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 shall:

• 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 agreement,
• Send reminder of existing obligation 1 day in advance,
• In case of delayed repayment of the loan, notify the guarantor not later than within the following day.

The guarantor has the right to:

• Request the Bank for information on the size of the loan balance, at any time,
• Get a refund of loan-related payments made, as well as of other losses incurred on behalf of the borrower.

Example of interest rate calculation
• In case of loans with the following terms and conditions:
 

Interest amounts structure

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:

Collateral evaluation

The pledged property is subject to evaluation by one of the evaluation companies cooperating with the Bank. The evaluation company is selected by the Customer. The evaluation report is usually valid within 3 (two) months from the date of the report. An additional re-evaluation may be required if necessary (for example, if market prices change).
In case of gold pledge, the evaluation 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 agreement or invoice may be taken as a basis, and up to 90% of the market value is taken as a basis for liquidation value.

Evaluating companies

Collateral insurance
The Bank may require insurance of the pledged property based on the purpose of the financing, the transaction or the specific features of the pledged property and the degree of creditworthiness of the borrower.
Insurance is carried out at least in the amount of the balance for the entire financing period (unless otherwise determined by the Bank), by any of the insurance companies cooperating with the Bank.
 

List of valuation 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) -AMD 0,
• For a duplicate 1.
- Covering a period of up to one month- AMD 1,800
- From 2 months up to 1 year - AMD 3,000
- Up to one year - AMD 12,000
- Up to 3 years (in case it is stored by the Bank) - AMD 24,000
• Statement for submitting to different institutions1
- 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
Intra-republican – AMD 500
International
- Tariff set by the delivery 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 delivery
- Intra-republican - AMD 3,000
- International - fee set by the shipment service provider + AMD 5,000
• Granting consent for registration of persons at the address of pledged real estate (irrespective of number of registered persons) - AMD 3,000
• Granting consent for modification of documents on real estate property pledged with the Bank3 - AMD 20,000
• Granting consent for the lease of pledged real estate property- AMD 12,000
• Granting consent to change the registration plates of the pledged car - 12,000 AMD
• Granting consent for the lease of pledged vehicle - AMD 8,000
• Granting consent to take out of the country the movable property pledged in the Bank - AMD 12,000 (for each pledged property)
• Partial release of pledged property based on the application of the pledgor or the lessee (except for the pledge of cash as well as unallocated metal accounts) - AMD 20,000 (per property)
• Lease 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 is applied only for individuals.
⁴The tariff is calculated based on the amount of lease provided. The tariffs are set at the time of submission of the application by the customer for revision of the lease terms.
 

Required documents

• Application form for a loan
• For a legal entity - founding documents, statute, certificate of state registry
• In case of an open joint stock company, a statement from the depositary on the shareholders
• Identity document, public service number (PSN) or statement on non-receipt of PSN of the founders, director, guarantors, pledgers and other related/affiliated persons of the company (not required if an identity card is presented).
• Consents to inquiries of the applicant, guarantors, pledgers and other related parties.
• Pledge ownership certificate, grounds for registration.
• Preliminary valuation letter on collateral /is submitted prior to the loan approval/.
• Collateral valuation report /is submitted after the loan is approved/.
• Тax reports for the period from January 1 of the previous year to the current period.
• Single tax account statement for the abovementioned period
• Tax liability statement (electronic).
• Cooperation agreements, licenses, permissions (if any) depending on the sphere of activity.
• Grounds for the place of activity: lease agreement, ownership certificate.
• Financial information:
cash flows from the beginning of the previous year to the current period of analysis,
as of the beginning, end of the previous year and current period of analysis:
- balance sheet,
- detailed information on receivables and payables,
- detailed information on fixed assets.
• Bank account statements from January 1 of the previous year to the current period of analysis.
• Extract from the minutes of the general meeting or the sole participant on obtaining financing, pledging property, providing a guarantee.
• Collateral insurance certificates (if insurance required - after loanapproval).
• Statement on limitations on pledged property (after loan approval).
• Other documents required by the Bank.

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.
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 portal "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 be taken 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 reducing 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/existing loans and becoming a guarantor for unreliable persons,
• avoid applying for new loans frequently.

Factors for loan approval and rejection
The Bank is inclined to approve the loan, if the applicant:

• meets the conditions and restrictions of the particular loan,
• secures his loan obligation with a pledge and guarantee, at the request of the Bank,
• as a result of the assessment the applicant is recognized as creditworthy,
• the documents and references submitted by the applicant are credible and include all necessary information,
• the applicant's credit history is either positive or missing.
The incompliance on the part of the applicant with any of the aforementioned conditions and with the requirements of the Bank’s internal regulations can cause the rejection of the loan.

Time span for notifying the customer of the decision to provide the loan and for the disbursement of loan amount.
 The decision making takes up to 10 banking days after submission of required documents and analysis,
 The customer is informed within one day,
 The loan agreement is concluded with the customer within 3-5 banking days after submission of the complete package of documents by the customer,
 The actual disbursement of the loan amount to the Customer is performed:
- in the case of unsecured loans, on the day of concluding the agreement,
- in the case of loans secured by collateral, upon receipt of the collateral right certificate from the relevant state authorities.
Venue for loan formalities and method of disbursement
Loan is provided at the Head Office and Branches.
The loan amount is provided to the borrower by depositing the sum into his/her account.

Settlement of 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 advised that based on the RA Law on Financial System Mediator, the disputes relating to a property claim for up to AMD 10 million or equivalent foreign exchange amount arising with regard to the services rendered to you by Converse Bank CJSC can be settled through the Financial System Mediator.

Based on the agreement concluded between the Bank and the Financial System Mediator, the Bank abandons the right to dispute the resolutions of the Financial System Mediator only for property claims not surpassing AMD 250,000 (two hundred fifty thousand) or the equivalent foreign currency (FX), and the amount of the transaction not surpassing AMD 500,000 (five hundred thousand) or equivalent FX.

Address: M. Khorenatsi 15, 0010 Yerevan
Business center Elite Plaza, Floor 7
Email: [email protected]
Tel: (+ 37460) 70 11 11
Fax: (+ 37410) 58 24 21

Contact the Bank
For additional information, please
• visit the Bank’s website https://www.conversebank.am
• visit the Customer Service Office at the Head Office or any branch of the Bank
• call +374 10 511211
WhatsApp: +374 95 511211
Skype: conversebank-callcenter

                                                                                                                                                   Updated on 14.01.2024