Beneficiaries are those Customers, whose:

• turnover of accounts with the Bank during the last 12 months amounts to at least AMD 2,000,000 or equivalent foreign currency and there has been no zero movement in the last quarter,
• the number of overdue days during the last year does not exceed 6, the number of continuous overdue days does not exceed 3, and there has been no classification,
• monthly payments on all financing (including from other banks and credit organizations) at the time of application do not exceed 35% of the average turnover of the last 12 months (when calculating the monthly payments, the equal (annuity) repayment schedule for the gross credit position calculated before the expiration of the financial liabilities is taken as a basis) moreover, when calculating the net turnover of accounts, if the latter is greater than the turnover reflected in the tax reports (VAT, Turnover tax, cash register turnover), then the turnover reflected in the tax reports is taken as a basis.
• If the turnover of accounts at the Bank is 1/4 of the historical 12-month turnover at another bank 3 months after the provision of financing, the terms and conditions of the Bank's Converse-Fast loan type can be applied to the customer.
• Bank’s account-holder customers can apply only for one type of loan: Converse-Fast or Converse-Fast Plus.

Fines and Penalties
The Bank can apply the following penalties and charges:
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.
3. The effective interest rate of the loan is increased by up to 2 percentage points in case of failure to secure 25% of the pledged turnover in the Bank every quarter after the loan is disbursed.

Collateral security
Account turnover and 1 guarantor, however, a guarantor is not required if the financing does not exceed 50% of the maximum amount limits.
The guarantor should not have classified loans during the last year and the number of overdue days should not exceed 6.

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 10,000,000
Nominal interest rate	14 %
Repayment period/maturity	12 months
Repayment type	Annuity

 Interest amounts structure

Monthly repayment (principal amount+ interest)	AMD 897,870
Total interest	AMD 774,454
Total of repayments	AMD 10,774,454

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 hard copy (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 duplicate¹.
- Covering a period of up to one month- AMD 1,800
- From two months up to 1 year - AMD 3,000
- Up to one year - AMD 12,000
- 3 years and more (in case it is stored by the Bank) - AMD 24,000

Statementfor submitting to different institutions¹
- In case of accounts opened within a month² 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

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
• Revision of loan terms³ - 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 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

• Application form for loan financing
• Consents for making ACRA inquiries
• For a legal entity - founding documents, identification document, Public Service Number or statement on not obtaining PSN (not required if identification card is submitted)
• In case of an open joint stock company, a statement from the depositary on the shareholders
• Тax reports for the past one year
• Statement on tax liabilities
• Extract from the resolution on minutes of general meeting or sole participant on financing, provision of a guarantee
• Statement of the last 12 months turnover of accounts with other banks
• 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.

  Updated on 18.07.2021