terms
&
tarifs
TERMS AND TARIFFS FOR PROVISION OF LOCAL BANK GUARANTEES
Customer/Principal
RA resident legal entity or private entrepreneur
Purpose of the guarantee
For participation in the tender, securing the contract, contract performance, securing the advance payment and other purposes
Currency of the guarantee
AMD, USD
Term of operation
Not specified
Product of the guarantee
Secured by primary collateral
Fast simple Secured only by credit history and real estate collateral
Secured by financial and economic analysis and property collateral
Amount of the guarantee *
300 000 – 400 000 000 AMD
800 – 1 000 000 USD
300 000 – 150 000 000 AMD
800 – 400 000 USD
300 000 – 400 000 000 AMD
800 – 1 000 000 USD
Term of the guarantee
Up to 60 months
Up to 60 months
Up to 60 months
One-time commission for providing the guarantee
0.75% 1 or 1%,
minimum 15 000 AMD,
maximum 400 000 AMD
1 if 100% of the collateral is secured
by a Legal Entity/Individual Entrepreneur.
-
-
Annual interest rate of the guarantee **
0%
2.5% per annum for annual payment frequency,
3% per annum for monthly payment frequency
2% per annum for annual payment frequency,
2.5% per annum for monthly payment frequency
Security/Collateral ***
Cash in the bank account, and/or
Cash invested in the form of a deposit, and/or
Bonds issued by the bank.
Real estate
Real estate/movable property, guarantee ****
Collateral Amount/Collateral Value Ratio
According to Appendix 1
In the amount of 60% of the collateral value.
The logic of calculating the guarantee amount/collateral value ratio, as well as additional information related to the collateral, is defined according to Appendix 1.
According to Appendix 1
Requirement for on-site visit and financial and economic analysis of the customer’s business
REQUIREMENTS, CONDITIONS REGARDING THE CUSTOMER, THE COLLATERAL, AND THE GUARANTEE
Valuation of collateral
Not required
The collateral is subject to valuation by an independent property valuation organization cooperating with the Bank.
Insurance of collateral
Not required
In the case of pledging cars, by decision of the Bank's authorized body, "Casco" (physical damage and theft) insurance may be required in favor of the Bank, at least in the amount of the guarantee, each year, for the entire period of validity of the guarantee.
Claims against the Customer (also participants/shareholders of a legal entity, beneficial owner) and Guarantors
The age of the Customer and/or Guarantor who is an individual entrepreneur is 18-65 years old.
Credit history:
No classification and/or the total number of days of overdue obligations during the last 12 months shall not exceed 30 days. (Not applicable to Guarantees secured by cash collateral)
No current overdue/classified obligations.
At least one of the guarantors must be the owner of real estate or be secured by a registered salary.
Fast simple - Only in the case of credit history and a product secured by real estate collateral, the requirements provided for in the information summary of the Fast simple loan type are applicable.
Other conditions
Fast simple - Only in the case of credit history and a product secured by real estate collateral, the requirements provided for in the information summary of the Fast simple loan type are applicable.
OTHER TARIFFS
Change in terms of the guarantee
25 000 AMD,
In case of extension of the term or increase of the amount, the corresponding provision/service fee/annual percentage rate calculated for the extended period/amount will be additionally charged. Moreover, if a maximum amount of the guarantee commission is set, the total amount of commissions charged in case of extension shall not exceed the maximum threshold.
In case of extension of the guarantee term, the frequency of payment of the commission/annual percentage rate, which was set initially, does not change.
Payment against demand
0.15%, minimum 50 000 AMD
Penalty for overdue commission/service fee
0.1% daily
Confirmation of the guarantee by a third bank
Upon request
PROCEDURE FOR MAKING AND DELIVERING A DECISION
Deadline for making a decision on the provision of a guarantee (after submitting the required documents)
Within 1 business day
Within 3 business days
Within 5 business days
Deadline for notification of the decision
Up to 1 business day after the decision is made.
Deadline for granting a guarantee
Up to 1 business day after submitting all required documents and performing state registration of the pledge right.
Maximum validity period of the decision
30 business days
In addition, the Bank has the right to refuse to provide a guarantee if any of the conditions considered essential for making a positive decision on providing a guarantee have changed.
Useful links
List of companies performing property valuation
List of required documents
* Moreover, the maximum amount is calculated on the basis of the total balance of the guarantees issued under the given product.
** Moreover, in the case where a monthly payment frequency is set, in the event of early termination of the guarantee, the interest accrued for the current calendar month is charged, after which the guarantee is terminated. In the case where an annual payment frequency is set, in the event of early termination of the guarantee, the interest accrued for the current calendar year is charged, after which the termination is carried out, and in the event that the interest has been charged, no recalculation is carried out.
In the event of an annual payment frequency of the interest rate, the interest rate is calculated for the actual term of the guarantee.
*** Other security measures may also be provided for by the decision of the Credit Committee.
Moreover, the total balance of the Customer's bank guarantees without property collateral cannot exceed AMD 10,000,000 and/or equivalent foreign currency.
**** Guarantees up to 10,000,000 AMD or equivalent in foreign currency can be provided only with a guarantee security, in which case at least 1 guarantee of an individual or legal entity is required for guarantees up to 3 million AMD or equivalent in foreign currency, and at least 2 for guarantees up to 10 million AMD or equivalent in foreign currency.
ATTENTION: IN THE EVENT OF NON-PERFORMANCE OR INCOMPLETE PERFORMANCE OF YOUR OBLIGATIONS, THE LENDER SHALL, AFTER 3 WORKING DAYS, SUBMIT SUCH DATA TO THE ACRA CREDIT BUREAU AND THE CENTRAL BANK (CB) CREDIT REGISTRY, WHERE YOUR CREDIT HISTORY IS FORMED.
YOU HAVE THE RIGHT TO OBTAIN YOUR CREDIT HISTORY FROM THE CREDIT BUREAU FREE OF CHARGE ONCE A YEAR.
ATTENTION: A POOR CREDIT HISTORY MAY HINDER YOU FROM OBTAINING LOANS IN THE FUTURE.
ATTENTION: LOAN INTEREST IS CALCULATED ON THE BASIS OF THE NOMINAL INTEREST RATE, WHILE THE ANNUAL ACTUAL INTEREST RATE SHOWS HOW MUCH THE LOAN WILL COST IF THE INTEREST AND OTHER PAYMENTS ARE MADE WITHIN THE SPECIFIED PERIOD AND AMOUNTS. THE PROCEDURE FOR CALCULATING THE ANNUAL ACTUAL INTEREST RATE IS POSTED ON THE BANK'S OFFICIAL WEBSITE
You can find detailed information about credit history and credit score here
You can find other loan-related terms and conditions at the following link.