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. Fee for loan application review, state fees (notary, pledge registration, etc.) and pledge assessment fees are not subject to reduction / refund.
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, 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.

Terms and restrictions

1. 1. PTI ≤ 60%PTI - The ratio of the maximum amount of monthly repayments of loan principal, interest, service and insurance premiums (if any) as defined by the repayment schedule to the total net monthly income of the borrower/co-borrower.
   In case of a loan in the amount of 25,000,000 AMD and more or equivalent foreign currency - OTI ≤ (PTI + 10%).
2. OTI ≤ 45%:
   The ratio of the total of maximum amount of monthly repayments of loan principal, interest, service and insurance premiums (if any) on the loan and on all other loans in the name of the borrower/co-borrowers, as defined by the repayment schedule, to the total net monthly income of the the same persons.
3. 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 "Just Developer" LLC.
4. Primary Loan Agreement (hereinafter PLA) is signed with all borrowers for 240 months.
5. The amount of PLA lending is defined as "20% added to the reference price of the acquired property", and in case of additional property pledged - "20% added to the reference price of the acquired property" and the sum of 80% of the market value of the additional property.
6. In case of loans for repair, the borrower undertakes to complete the renovation works within the period specified in the agreement, but not later than within 1 year, after which the purpose of the loan is subject to monitoring.
7. The apartment being renovated is owned by the borrower.
8. At the time of applying for the loan, the sum of applicant's age and loan term should not exceed 65.The age of the pledger (if different from the borrower) at the time of loan application should not exceed 70 years.
9. The term of pledge of funds defined by the deposit / bond agreement is set for at least 4 years.
10. In case of expiration of the term of the deposit agreement, it is extended under the same conditions until the full repayment of the obligations, for the security of which the funds defined by the mentioned agreement are pledged.
11. The release of the pledge of funds specified in the deposit / bond agreement may be carried out after the revaluation of the real estate, given that the loan / real estate collateral ratio does not exceed the maximum index defined.
12. The Bank insures the pledged property at least in the amount of the loan balance by one of the insurance companies cooperating with the Bank, moreover, the Bank is considered to be the beneficiary.
13. 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), unless a valid document is submitted regarding the repayment of overdue amounts.
• Delays on each loan (both current and repaid) during the year preceding the loan application period should not exceed 30 days in total, regardless of the amount of overdue liabilities and/or the amount of overdue liabilities does not exceed AMD 10,000 or equivalent foreign currency, regardless of the number of delay days (these conditions are not applied to guarantees).
• Delays on all loans (both current and repaid) during the year preceding the loan application period should not exceed 50 days in total, regardless of the amount of overdue liabilities and/or the amount of overdue liabilities does not exceed AMD 20,000 or equivalent foreign currency, regardless of the number delay days (these conditions are not applied to guarantees).

Frequency and method of loan repayment

• "Annuity" (Equal monthly repayment), with principal and interest accrued in variable portions.
• "Spring" (decreasing monthly repayment), in which the principal amount is included in equal portions, and accumulated interest is variable.

The loan for repair can be provided on phased basis (maximum in 5 disbursements), moreover, in case of the loan amount exceeding AMD 10 million/equivalent foreign currency, the condition of phased disbursement is mandatory.

Collateral security
In case of acquisition

• Collateral of 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 up to 80%,
- in case of completion over 81 % - 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,
• Collateral of the additional real estate,
• Collateral of funds defined by the deposit / bond agreement/s ,
• Guarantor or co-borrower⁴ if necessary*.

In case of renovation

• • The loan must be secured by collateral of the renovated real estate or its right to purchase (if the building is complete for more than 81%) and / or by collateral of additional real estate.
• • Guarantor or co-borrower⁴ if necessary.

⁴ The borrower's family member can act as a co-borrower or guarantor, the terms and conditions imposed on the borrower also are applied to co-borrowers.

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.
The procedure for calculating the annual actual interest rate can be found here:

Valuation of collateral

• No valuation of the acquired property is required, the reference price is taken as a basis.
• The pledged real estate is subject to valuation 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 in case of 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) in the customer's preferred way: - 0,
• Provision of additional statement on mortgage loans (including submission to the RA State Revenue Committee) 4 times a year, for the period specified by the customer: 0
• Provision of a statement in addition to the periodicity specified in the previous paragraphs 1:

- Dated 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 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 release 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

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 and references 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 takes up to 10 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 actual disbursement of the loan to the customer is performed upon receiving the certificate of pledge right from the relevant state authorities.

Venue for loan formalities and method of disbursement

Loan is provided at Head Office and Branches.
The loan amount is transferred directly to the seller / developer’s account. In case of loan for repair the loan amount is disbursed to the borrower by way of depositing it to the borrower's bank account.

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

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 mediator.

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 10 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 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