List of payments made by the customer

If the customer already has savings accounts in the mentioned currencies, new accounts may not be opened, instead the terms of the existing ones will be edited accordingly.

Early repayment of the loan

The borrower has the right to repay the loan in whole or in part in advance, including through refinancing.
In case of early repayment of the loan amount or part of it, the Bank will reduce the total cost of lending, including the total interest payable under the loan agreement and service charges.
At the borrower's discretion, the Bank will reduce the amount of monthly payments in proportion to the amount repaid in advance, leaving the loan repayment period unchanged, or reduce the loan repayment period, leaving the amount of monthly payments unchanged.

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 amount for each day of default.
Repayments of overdue liabilities are repaid in the following order: fine/penalty, interest, service fee, principal amount.

In case of early loan repayment, the borrower pays a fine to the Bank.

• 0.6% of the early repayment amount of the loan, if the early repayment takes place during the first year of the loan agreement,
• 0.4% of the early repayment amount of the loan, if the early repayment takes place during the second year of the loan agreement,
  
• 0.2% of the early repayment amount of the loan, if the early repayment takes place during the third year of the loan agreement.
  

No penalty is envisaged for early repayment of the loan for the remaining period of the loan agreement.

Consideration time

At least 7 days prior to the conclusion of the loan agreement, the Bank will provide you by hand or by mail a loan agreement proposal and a draft loan agreement. The proposal to conclude a loan agreement is valid for 7 business days from the day following the date of its submission to the borrower.

Restrictions

1. The terms and conditions of the borrower also apply to co-borrowers.
2. The prepayment of the acquired property at the moment of submitting the loan application is credited to the special account of the developer opened in the name of "Antarayin Shin" LLC.
3. Master Loan Agreement (hereinafter MLA) is signed with all borrowers: in case of loans in AMD - for 180 months, and in case of loans in Euro - for 240 months.
4. In case of renovation loans, the borrower undertakes to complete the renovation works within the period specified in the contract, but not later than within 1 year, after which the purpose of the loan is subject to monitoring.
5. At the time of applying for the loan, the sum of applicant's age and loan term should not exceed 65.
6. The age of the pledger (if different from the borrower) at the time of loan application should not exceed 70 years.
7. Credit history requirements.

• At the time of considering loan application, the borrower/co-borrowers should have no overdue loans, as well as existing loan obligations classified stricter than "standard" class (including guarantees).
• During the year preceding the loan application date, the applicant should not have classification for any loan under stricter than "non-standard" class, as well as should not have arrears in terms of all for a period of up to 25 days in total (conditions do not apply to guarantees).
• Persons running a common household with the applicant should not have any existing overdue loan liabilities or classification for any loan under stricter than "non-standard" class (including guarantees) at the time of loan application review.
  

Loan repayment methods

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.

The acquisiton loan, providing the loan / collateral ratio does not exceed 60%, can be provided with a grace period of up to 12 months.
The grace period is provided from the beginning of the loan term, during which only the interest accrued on the balance of the received loan is subject to repayment.

The renovation loan can be provided for up to a grace period of up to 6 months, during which the borrower can receive all or part of the loan. The loan can be provided on phased basis (maximum in 5 disbursements), moreover, in case of the loan amount exceeding 10 million AMD / equivalent foreign currency, the condition of phased disbursement is mandatory.

Collateral security

In case of acquisition

• Collateral for the acquired real estate (if completed)
• Right of purchase collateral, in which case, upon receipt of the ownership certificate, at the request of the Bank, it will also be pledged in favor of the Bank within a maximum period of 5 days:

- if the degree of completion is 50% - 79%,
- in case of completion over 80 - at the discretion of the bank

• Collateral of the funds or a part of them deposited by the Buyer on the developer's special account, upon availability of an agreement on pledge in favor of the Bank.
• In case of absence of prepayment for the acquired property, additional real estate collateral is required.
• Guarantor or co-borrower 4 if necessary.

In case of renovation

• The loan must be secured by collateral of the renovated real estate or the latter's right to purchase and / or by collateral of additional real estate or funds in a special account.
• Guarantor or co-borrower 4 if necessary.

⁴ A borrower's family member can act as a co-borrower or guarantor; if a co-borrower is present, no guarantor is required.

Loan / collateral ratio

In case of acquisition

• Up to 100% of the actual cost of the acquisition, but not more than 85% of the value calculated at a reference price⁵.
• In case of additional real estate collateral - up to 100% of the actual acquisition value but not more than 80% of the total collateral value (sum of the value of the acquired property (right to purchase), calculated at the reference price, and estimated realisable value of the mortgaged property).
• The amount of lending under МLA shall be established as “Acquired asset's value calculated by reference price plus 20%”, and in case of pledging additional property- “Total of the acquired asset's value calculated by control price plus 20%” andof 80% of realizable value of additional property.

⁵ Reference price is set by the Bank for one square meter of residential real estate area, which is AMD equivalent to a maximum of USD 1,350, multiplied by the total area of acquired real estate, expressed in square meters.

In case of renovation

• In case of MLA available:

- if only the right to purchase the acquired real estate is pledged as collateral and the degree of completion of the building is less than 50-80%, then 70% of the balance of the maximum credit limit set by the MLA less the balance of loans provided under the same MLA;
- if only the right to purchase the acquired real estate is pledged as collateral and the degree of completion of the building is above or equal 50-80% and an additional real estate collateral is available - then 90% of the balance of the maximum credit limit set by the MLA less the balance of loans provided under the same MLA.

• In case of property acquired in cash - 60% of the value calculated at the reference price, and in case of additional real estate pledged as collateral - 60% of the sum of the property calculated at the reference price, and realizable value of additional property.
• In case of pledging other property, when the renovated property or the right to purchase the property is not a subject of collateral- 60% of the realizable value of the pledged property.

Requirements to the Guarantor

Legal entities and individuals may act as guarantors.

Guarantor:

• Must have a stable proven income or ownership/co-ownership for immovable and/or movable property,
• At the time of loan disbursement may have a maximum of 3 current guarantees against liabilities of other persons whose liabilities are not overdue;
• should not have problem loans at the time of loan disbursement, nor overdue liabilities of 30 days or more during the last 12 months;
• cannot simultaneously act as a co-borrower.

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.

Deferral of regular repayment

Deferral of regular repayment may be provided based on the borrower client's application. The purpose of deferral of repayment is to allow for non-payment ("missing") of the regular repayment established by the loan schedule upon temporary change of financial flows (vacation, etc.), in which case the total amount to be repaid for the given month (principal + interest) is proportionally redistributed to repayments of subsequent months (In case of monthly service applied, it is also redistributed and added to the service amount of the next regular repayment month).
The following restrictions apply on the applicability of the deferral on regular repayment:

• The possibility of deferral of regular repayment is applicable for loans serviced for at least 6 months.
• Deferral of regular repayment is not applicable during the grace period, as well as in the case of loans with a revised loan schedule.
• At the time of filing the application for deferral of the regular repayment, there should be no more than 6 days in arrears in total on the loan under consideration; the class of the loan should be "standard", the borrower should not have overdue liabilities to the Bank, as well as there should be no payment delay on the repayment preceding the one under consideration for deferral.
• In case of loans with a term of less than 60 months, the deferral on regular repayment can be granted no more than once during the entire loan term.
• In case of loans with a term of 60 months and above, throughout the entire term of the loan (except for the last 2 years defined by the loan schedule) the deferral of regular repayment may be granted for up to 5 times, however not more often than once during the reporting year.

Example of calculating interest rates

In case of loan with the following terms and conditions:

Interest composition

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.

Valuation of collateral

• No valuation of the acquired property is required, the control price is taken as a basis.
• The real estate under renovation or additionally pledged is subject to valuation 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).
   

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 statement with periodicity prescribed by RA legislation (once): 0,
• Provision of additional statement¹ Except for periodicity prescribed by RA legislation:

- dating 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 month² AMD 5,000
- In case of accounts opened earlier - AMD 3,000

• Reference to be provided to the RA State Revenue Committee on paid amount of interest: AMD 1,000
• Reference based on the application submitted through the Bank's website - 3,000 AMD
• 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 - 0
 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 family members 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
• 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 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 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.

Required documents

Your financial directory

"Your financial directory" at www.fininfo.am, is an electronic system combining services offered to individuals that makes it easy to search, compare and find the most effective option for you. https://www.fininfo.am/finhelper/index.php?type=mortgage.

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