Attention. The consumer/borrower has a right to unilaterally terminate the credit agreement without any reason within 7 working days following its conclusion, unless a longer period is provided by the credit agreement (thinking time). In such case the consumer undertakes to pay interest to the creditor for using the credit amount, which is calculated in accordance with the annual actual interest rate envisaged by the credit agreement. No other compensation may be required from the consumer in connection with the termination of the credit agreement.

Attention. Early loan repayment is allowed, for which no fines and penalties are charged.

Attention. Interest is calculated on the loan balance.

Attention. When applying for a loan, the Bank provides an individual leaflet presenting the individual terms of the loan to be provided to you (for loans equivalent to up to AMD 15,000,000).

Attention. "Your Financial Informant" is an electronic system that searches, compares, and facilitates the selection of the most effective option among the services offered to individuals: https://www.fininfo.am/sparoxakan-varker.

Attention. To get acquainted with the tariffs of additional services rendered within the implementation of loan operations, please visit the link. 

Attention. You can familiarize yourself with the terms, deadlines and tariffs of the provision of statements, their copies, references and other information during the validity period of the agreement by visiting the link. 

Attention. In case of a loan provided in foreign currency secured by AMD, the average exchange rate of the given currency published by the Central Bank of the Republic of Armenia and formed in the currency market as of the date of loan disbursement is taken as a basis.

Attention. On the purpose of due diligence of the customer envisaged by RA law “On combating money laundering and terrorism financing”, the Bank may request additional documents or other information from the consumer based on the “Know your customer” principle, as well as ask the consumer additional questions during oral communication.

Attention. In compliance with the agreement signed with the USA, to find out whether you are a US taxpayer, the Bank may collect additional information about the contracts, agreements, cooperation or membership entered into by financial institutions, which may have a direct impact on consumers (e.g., Foreign Account Tax Compliance Act (FATCA)).

Attention. In case of real estate loans exceeding AMD 15,000,000, if an early repayment is made in an amount exceeding 20% of the principal balance as of the first day of a given month (excluding the portion of the loan to be repaid as per the monthly schedule) without the Bank’s written consent, a penalty in the amount of 5% of the early repaid amount will be charged.

Attention. When applying for a loan, the Bank provides you with an individual leaflet on the essential terms of the consumer loan, which defines the individual terms of the loan to be provided to you.

Attention. In case of failure to fulfill or improper fulfillment of your obligations, the lender sends your data to the Credit Bureau within 3 business days, where your credit history is formed. You have the right to obtain your credit history free of charge once a year from the Credit Bureau (https://acra.am/?lang=hy).

Attention. A bad credit history may hinder you from obtaining loans in the future.

Attention. Loan interests are calculated based on the nominal interest rate. The annual actual interest rate shows the total cost of the loan, provided that all payments of interest and other charges are made within the established terms and amounts.
You can find the procedure for calculating the actual annual interest rate at the following link.

Payments made by the consumer, regardless of whether they are related to credit-financed or non-credit-financed products, services, or works, are not included in the calculation of the actual interest rate.

Attention. The nominal interest rate may be changed by the Bank. Information on changes in the nominal interest rate can be found at the following link.

1. You are eligible to communicate with financial institution by the means of communication you prefer – through postal services or electronically. The receipt of information electronically is the most convenient. It is available round-the-clock (24/7), is free of the risk of loss of paper information and ensures the confidentiality.

2. The possible negative consequences, penalties/fines for the customer in case of non-fulfillment of obligations

• 0, 13%a of the unpaid amount for each overdue day
• 0, 13%a of the unpaid interest amount for each overdue day

3. If you have outstanding liabilities against the creditor, while fulfilling your obligation the loan repayment arrangements are made in the following sequence:

• Court costs (if any)
• Collateral sale costs (if any)
• Penalties (if any)
• Interest (if any)
• Insurance costs (if any)
• Principal amount of the loan

4. Property (house, car, etc.) pledged by you may be confiscated by law in case you fail to perform your loan obligations on time.

5. In case of non- fulfillment of loan liabilities, the loan liabilities are covered by the collateral, and should the collateral be not enough to repay the borrower’s liabilities it is possible to repay the liabilities on the account of another property of the borrower and/or guarantor(s)/co-borrower/s/.

6. Loan interests are calculated towards the loan balance.

For example if the customer is provided with a loan in the amount of AMD 1,200,000 with an annual interests rate of 24% ,with 12 months period (while calculating monthly accrued interests as a number of days 30 days period has been taken as a basis).

7. WE SHOULD REMIND THAT THE EXCHANGE RATE FLUCTUATIONS MAY HAVE AN IMPACT ON THE REPAYMENTS OF LOAN PROVIDED IN FOREIGN CURRENCY.

8. The Bank applies no limits to loan amount; it will be conditioned by and related to:

• Purpose of loan
• Customer's creditworthiness
• Collateral offered by the customer
• Loan risk assessment
• Requirements of prudential standards provided by the Central Bank of Armenia

9. "ARMECONOMBANK" OJSC can provide services to the customer under terms which may differ from those set forth in the Bank's overall policy taking into account any of the following conditions of the below-mentioned list:

• Customer account balance
• Customer account turnover
• Strategic importance of the customer for the Bank
• Number of employees in customer organization
• Total number of cards issued for customer organization
• Income gained from customer
• Volume of transfers
• Size of deposits with the Bank
• Significant borrower
• Social considerations (medical organizations, educational institutions, etc.)
• Being the head of such organization
• Other objective conditions

10. The borrower pays interest to the bank for using the loan amount, the interest of which is calculated on the loan balance for the calendar days of actual use of the loan based on a 365-day year. For loans under specific projects the interest calculation may be based on a 360-day year.

• Loans are repaid within the dates indicated in the loan agreement.
• The periodicity of interest payments is determined in accordance with the loan agreement or repayment schedule.
• If the repayment date for principal or interest rates falls on day off, the payment is made on the following working day without calculation of penalty for the days off.

11. Repayment of Loans

• Loans are repaid within the dates indicated in Loan Agreement
• Loans are repaid in the currency in which they were given
• In case of loans in foreign currency, exchange rate fluctuations may affect loan payments
• In case of exchange rate fluctuations, the exchange rate risk related to loans will be borne by the borrower

12. The Bank may terminate the Loan Agreement and request repayment of the loan amount, if

• The borrower has failed to make any payment required under Loan Agreement
• The borrower has breached any confirmation made by the him/her and fails to correct such breach within 30 days following the occurrence thereof
• Any presentation, warranty, document, or information provided by the borrower is materially incomplete
• By reasonable opinion of the Bank, an essential negative change has occurred in financial state of the borrower, including court orders, outflow of assets, deterioration or termination of business, company re-organization.
• The borrower undergoes dissolution, or is subject to ongoing or pending bankruptcy proceedings
• The borrower interferes with monitoring
• In case of other objective reasons

13. The Bank may accept as collateral:

• Real estate: land, houses, buildings, apartments
• Fixed assets
• Circulating assets
• Motor vehicles
• Precious metals
• Treasury bills, foreign currency, stocks
• Property to be purchased and ownership right
• Cash

14. The appraisal value of movable and immovable real estate is based on the market value indicated in appraisal statement.

15. The loan or a part thereof, as well as the accrued interest is deemed overdue if not repaid within periods specified in the Agreement.

• In case of non-repayment of the amounts (the loan, interests other payments) within the term(s) set by the Agreement, Borrower shall pay a penalty in the amount of 0.13% (zero point thirteen percent) of the overdue amount for each day of default. The total amount of the unpaid interests calculated in accordance with this paragraph shall not exceed the current debt balance.
• In case of non-repayment of the loan or a part thereof within the term(s) set by the Agreement, the Borrower is obliged to pay interests to the Bank in the amount of double of the settlement rates set by the Central Bank of Armenia. The  total amount of the unpaid interests calculated in accordance with this paragraph shall not exceed the current debt balance.
• Starting from the 91st day of overdue days, 21,5% annual interest rate is applied to the balance of non-overdue loan (term loan). After the full repayment of outstanding amounts, penalties and interests accrued, the interest rate set by the Loan Agreement is recovered.

16. The Bank shall not accept the following items as collateral:

• Non-circulating assets
• Separate parts of indivisible property
• Leasing right
• Property owned by urban, rural, and local communities
• Property with ownership right

17. To satisfy the claim of CREDITOR-PLEDGEE, the pledged property may be confiscated in extrajudicial manner pursuant to paragraphs 2-4 of these Rules in case of non-fulfillment or improper fulfillment of the obligations by PLEDGER under Collateral Agreement and by BORROWER under Loan Agreement.
   2. The property confiscated in extrajudicial manner may be sold if under the Pledge Agreement PLEDGER has authorized CREDITOR-PLEDGEE to sell the pledged property upon emergence of the grounds for confiscation as stipulated in paragraph 1 of these Rules without seeking court intervention and so fully recover the claim covered by the collateral and has also agreed to transfer without seeking court intervention the ownership of the pledged property against the respective part of main liability to CREDITOR-PLEDGEE or any person designated by the latter in the manner provided by RA legislation.
   3.Upon emergence of the grounds for confiscation as stipulated in paragraph 1 of these Rules, CREDITOR-PLEDGEE shall duly notify PLEDGER in writing of confiscation of the pledged property (confiscation notice). In two months following the date of delivery of confiscation notice to PLEDGER, CREDITOR-PLEDGEE shall have the right, pursuant to Article 195 of RA Civil Code, to sell the pledged property directly or through public auction pursuant to RA Law on Public Bidding.
    4. PLEDGER undertakes to transfer the pledged property to CREDITOR-PLEDGEE within two months following the date of delivery of confiscation notice to PLEDGER.
    5. The duration of process of sale of pledged property may not become a ground for cessation of growth of BORROWER's liabilities to CREDITOR-PLEDGEE. Moreover, the proceeds from sale of collateral shall be utilized to fully cover CREDITOR-PLEDGEE's claims to BORROWER existing as of the date of sale of collateral and, should the claim not be covered on the account of the collateral, the outstanding amounts may be confiscated from other property of BORROWER.
    6. Confiscation of the property pledged to cover CREDITOR-PLEDGEE's claims by court order may be executed in the manner provided by RA legislation.

18. You can get acquainted with the tariffs on any service by visiting the following link.

19. You can get acquainted with the terms and conditions of remote banking services by visiting the following link.

Loan history and Score grading

The essence of credit history:

Credit history is a set of information on quality of fulfillment of current and closed financial liabilities of the customer, which is collected in the Credit Bureau based on the information provided by credit organizations.The information collected is systemized by the Credit Bureau and as needed (Application of a new loan, monitoring of acting loan and etc) is provided to financial institution having the appropriate authority making the request. The client's credit history is essential for the lending organization in order to assess the creditworthiness of the given client and to make a decision to grant or reject a loan.

To change an incorrect or incomplete credit history, the client can apply to the ACRA Credit Bureau by submitting a written application manually or electronically, find out what information is stored about him/her and what is the source of the incorrect or incomplete information.

To submit an application to ACRA Credit Bureau, please visit the following link. 

Please follow the link below for the importance and significance of credit history.

The nature of credit SCORE scoring:

When granting certain types of loans, the financial organization uses a scoring system for assessing the creditworthiness of the client. The SCORE grade of the Applicant is mainly formed from various criteria of the credit history, based on which the applicant's creditworthiness is assessed using a scoring system. The score allows the financial organization to model and predict the possible behavior of the applicant during the period of the new loan, taking into account the eagerness of the applicant to repay previous and current obligations, the frequency of taking on new obligations and other criteria.

"ARMECONOMBANK" OJSC company uses the scoring system of evaluation developed and implemented by the Bank.

The factors affecting the SCORE grade are: credit burden, availablity of recorded income, previously overdue liabilities and etc. Each equest of credit history may have a negative impact on SCORE grade of the particular applicant and reduce it.

The customer's credit history and score can be improved by taking the following steps:

• fully repay existing overdue loan obligations and exclude even one day delays in performance of obligations on current loans;
• avoid becoming a guarantor for loans of untrustworthy persons in the future;
• have recorded income.

Please follow the link below for the importance and significance of credit history.