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

Collateral valuation	In case of real estate - AMD 18,000 AMD - 360,000 (based on the type and total area) In case of movable property - AMD 10,000 - AMD 50,000 (based on the type)
Single statement	In case of real estate - AMD 10,000 In case of movable property - 0
Notary validation	AMD 20,000
Registration of the right to pledge	In case of real estate - AMD 27,000 In case of movable property - AMD 2,000
Pledged property insurance	- Real Estate: 0.12 - 0.16 (upon request) - Cars (Casco) - 2.5% (used as a taxi - 6%) - Special purpose movable property according to insurance company quotation

 Fines and penalties

 

Following fines and penalties may be applied by the Bank:

 

1. In case of overdue loans 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. Penalties and fines are not applied in case of early repayment of the loan.

 

 

 

Frequency and method of repayment of principal and interest

• The principal amount is repaid at the end of the term, and the interest is paid monthly.
• If the repayments are not made by the borrower or are made in violation of the repayment schedule, the loan interest rate is changed to the interest rate set for the "Converse SME" loan type for the relevant term and currency.

 

Collateral security
1. 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.
2. In the case of non-collateralized loans - guarantees of at least 50% of the Company's eligible participants and two additional guarantees.
Loan/collateral ratio - LTV
Up to 70% of the evaluated liquidation value of the collateral depending on the type of pledged property.
In case of gold items used as collateral, financing is provided in the amount of up to 100% of the evaluated value.
In case of a start-up business, a real estate mortgage is considered as a collateral security, whereby the loan amount cannot exceed 50% of the liquidation value of the pledged property.

Requirements to the Guarantor
Guarantor:
• must have a stable proven income or ownership/co-ownership for immovable and/or movable property subject to state registration,
• at the time of disbursement of loan amount may have maximum of 3 current guarantees against liabilities of other persons whose liabilities are not overdue,
• should not have problem/non-performing loans/liabilities at the time of loan disbursement, nor overdue liabilities of 30 days or more during the last 12 months;

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:

• Provides 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,
• Notifies at least 7 days in advance of the change in the terms of the agreement,
• Sends reminder of existing obligation 1 day in advance,
• In case of delayed repayment of the loan, notifies 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:

Loan amount	AMD 5,000,000
Nominal interest rate	13 %
Repayment period/maturity	12 months
Repayment type	Interest - monthly, principal - at the end of the term

Interest amounts structure

Monthly repayment (principal amount+ interest)	From AMD 49,863 to 55,205 depending on the number of days in the month
Total interest	AMD 651,781
Total of repayments	AMD 5,651,781

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 immovable and movable property to be pledged 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 2 (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 for the evaluated market value.

List of valuation companies

 

Collateral insurance
The Bank can require insurance of collateral based on the purpose of financing, the deal or the specifics of pledged property.
Casco insurance is applied in case of pledge of motor vehicles.
Insurance is carried out at the evaluated market value for the entire financing period (unless otherwise provided by the Bank decision) by one of the partner insurers of 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
 In the Republic of Armenia and Artsakh – AMD 500
 International
- Tariff set by the shipping service provider, if established by law and agreement.
- 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 the Republic of Armenia and Artsakh- 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: 0.5%, minimum AMD 12,000, maximum AMD 60,000
• 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
• 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)
• Revision of loan terms 4 - 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

1. Application form for loan financing
2. Consents for making ACRA inquiries
3. For a legal entity - founding documents, identification document, Public Service Number or statement on not obtaining PSN (not required if identification card is submitted)
4. In case of an open joint stock company, a statement from the depositary on the shareholders
5. The original certificate of ownership of the pledged property, grounds for acquisition
6. Тax reports for the past one year
7. Statement on tax liabilities
8. Ownership Certificate or Loan Agreement for the place of activity, or other evidence of entitlement to the customer's place of business (for example, reference from the local administration)
9. Initial and basic collateral valuation (revaluation) report (after loan approval) or a basis for determining the value of the proposed collateral
10. Extract from the resolution on minutes of general meeting or sole participant on financing, pledging of property, guarantee
11. Collateral insurance certificates (if insurance required - after loan approval)
12. Statement on limitations/restrictions (after loan approval)
13. 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 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․

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 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 loans and not to become a guarantor for unreliable persons,
• avoid applying for new loans frequently.

Attention

Due to the change in the foreign exchange rate, the actual annual interest rate and the amount of loan repayments may change.   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.

Your property may be confiscated by law if you fail to make your interest and loan repayments on time.

In case of insufficient funds to repay your loan liabilities, they may be repaid at the expense of your other property and/or that of the guarantor, as prescribed by the RA legislation.

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.

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.

The Bank is entitled to modify and supplement the tariffs for additional services provided by notifying the Customers in accordance with the agreement, 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 discretion, which is considered a due notification of the Customer. If you have applied for the loan also and exclusively for refinancing of your credit liabilities to other organizations (banks, credit organizations, etc.), we hereby warn that  you have to repay the outstanding interests, penalties service and other fees to these organizations after refinancing independently, and the Bank declaims the responsibility for the default of the payments.

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 periods for notifying the customer of the decision to provide the loan and for the disbursement of loan amount.

• The decision making takes up to 3 banking days,
• 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 loan is provided to the customer on the day of conclusion of the agreement.

Venue for loan formalities and method of disbursement
Loan is provided at 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 exchange (FX), and the amount of the transaction not surpassing AMD 500,000 (five hundred thousand) or equivalent FX.

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

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