Non commercial loans and credit projects

“Anelik Bank” CJSC extends consumer and mortgage loans to individuals by its own resources and within the frames of international credit projects.

Mortgage loans

Mortgage loans are extended to individuals for the purpose of purchase and reconstruction of residential real estate.

Mortgage loans are given under the following conditions:

1. Housing finance program of the German – Armenian Fund

  • Maximum amount of the loan – 12.000.000 Armenian drams
  • Maximum maturity of the loan – 120 months,
  • Annual interest rate of the loan – starting from13%,
  • Prepayment amount (if purchasing) – 30% at least,
  • Insurance of the real estate amounting to 0.4% of the evaluated value annually,
  • Life insurance amounting up to 1% annually, calculated against balance of the loan.

2. “National Mortgage Company” UCO CJSC financing program

  • Maximum amount of the loan - 20.000.000 Armenian drams,
  • Maximum maturity of the loan - 132 months,
  • Annual interest rate of the loan – starting from13%,
  • Prepayment amount (if purchasing)– 30% at least,
  • Insurance of the real estate amounting to 0.4% of the evaluated value annually,
  • Life insurance amounting up to 1% annually, calculated against balance of the loan.

3. “Housing for young families” UCO CJSC financing program

  • Loan is extended to young families where total age of the spouses doesn’t exceed 60, and at the same time the age of any of family members should not exceed 35 or a single parent age having a child should not exceed 30.
  • Maximum amount of the loan - 11.200.000 Armenian drams
  • Maximum maturity of the loan – 180 months
  • Annual interest rate of the loan – starting from 6.5%,
  • Purchasing value of the apartment should not exceed 16 000 000 AMD and at the same time evaluation value should not exceed 16.500.000 AMD.
  • Prepayment amount (if purchasing)– 30% at least
  • Insurance of the real estate amounting to 0.4% of the evaluated value annually,
  • Life insurance amounting up to 1% annually, calculated against balance of the loan.

4. Own resources lending

  • Maximum amount of the loan - 100.000.000 AMD or equal foreign currency,
  • Maximum maturity of the loan – 120 months,
  • Annual interest rate of the loan – starting from 12%,
  • Prepayment amount (if purchasing) – 20%.

Service fee for the mortgage loan is set in amount of 1% of the loan.

Early repayment penalty in amount of 1% of the repaid loan is charged.

The following documents are required to receive loan:

  • Application of the client,
  • Identification documents (passport, social card)
  • Income reference (salary, etc)
  • Cost estimate (if reconstruction),
  • Property certificate of the pledged property, the owner’s grounds
  • Proof of residence,
  • Other documents as required.

Consumer loans

1. Lombard loans

“Anelik Bank” CJSC extends Lombard loans against gold items only.

  • Minimal amount of the loan – 70.000 Armenian drams
  • Maturity – up to 12 months,
  • Annual interest rate – 20-22%.

If loan is given for up to 9 months (inclusive) maturity its amount may not exceed 90% of evaluation cost of the items, and if 12 months – 80%.

Amount of the loan extended against golden items with precious stones shall be added to in amount of 50% of the evaluation cost of the precious stones, but no more than 25% o fthe loan given against gold items (without precious stones). Moreover, no loans are given against separately taken precious stones.

Loan is available upon submission of identification documents (passport and social card).

Sample of calculation of annual actual interest rate of Lombard loan:

  • Loan amount- 200.000 Armenian drams,
  • Interest rate- 20% per annum,
  • Term - 12 month,
  • Single commission charged at the extending of the loan makes 0.8% of the amount of the given loan.
  • Actual annual interest rate makes 23.01%.

2. Study loans

Anelik Bank CJSC extends Study loans provided for tuition fee payment for those studying at Educational Institutions.

  • The maximal amount of the loan amounts to the tuition fee equal to the fee of 1 academic year
  • The maximum maturity – 12 months,
  • Annual interest rate – 22%,
  • Guarantee of one or two persons.

The following documents should be required:

  • passport, social card,
  • proof of residence,
  • Documents from the Educational Institution required by RA Legislation in order to pay tuition fee of the Student (invoice, transfer account, etc),
  • Owner’s proving documents, and/or workplace reference, including actual monthly remuneration during the last 6 months, position held, address and telephone of the Company
  • Other documents as required

Sample of calculation of annual actual interest rate of Study loan:

  • Loan amount- 300.000 Armenian drams,
  • Interest rate- 22% per annum,
  • Term - 12 month,
  • Loan opening commission makes 2000 Armenian drams.
  • Annuity payment
  • Single commission charged at the extending of the loan makes 1% of the amount of the given loan
  • Actual annual interest rate makes 28.39%.

3. Car purchase loans

“Anelik Bank” CJSC gives loans to natural persons for both primary and secondary market car purchase.

Primary market

  • Maximum maturity – 60 months,
  • Account service fee – 03.05%,
  • Annual interest rate – from 15%,
  • Prepayment is charged as stated by collaboration agreement (or 20%).

Secondary market

RF, Chinese and Iranian production

  • Maximum maturity – 36 months,
  • Account service fee – 03.05%,
  • Annual interest rate – from 18%,
  • Prepayment – 50% at least
  • Period of production – up to 5 years.

Production of other countries

  • Maximum maturity – 60 months,
  • Account service fee – 03.05%,
  • Annual interest rate – from 18%,
  • Prepayment – 30% at least

The borrower may take car loan to purchase cars of more than 10 years old. However, at the maturity of the loan he age of the car should not exceed 15 years.

Loans may be given provided that the purchased car is insured (1.7-2% per annum). Moreover, insurance is based on the amount of the loan given against the car.

The purchased car is taken as collateral. Loans are extended upon availability of guarantee of he third person.

Sample of calculation of annual actual interest rate of car purchase loan:

  • Loan amount- 5.000.000 Armenian drams,
  • Interest rate- 15% per annum (primary market),
  • Term - 60 month,
  • Loan opening commission makes 2000 Armenian drams.
  • Annuity payment
  • Single commission charged at the extending of the loan makes 1% of the amount of the given loan
  • Evaluation of the collateral - 12.000 Armenian drams,
  • Insurance – 2.5% of the loan amount annually,
  • Actual annual interest rate makes 24.28%.

4. Consumer loans secured with real estate and/or car

“Anelik Bank” CJSC extends consumer loans to individuals secured with real estate and/or car.

  • Maximum loan amount - 100 000 000 AMD
  • Maximum maturity – 96 months,
  • Annual interest rate – up to 24%,

Sample of calculation of annual actual interest rate of consumer loans secured with real estate and/or car:

  • Loan amount- 1.000.000 Armenian drams,
  • Interest rate- 18% per annum,
  • Term - 24 month,
  • Loan opening commission makes 2000 Armenian drams.
  • Annuity payment
  • Single commission charged at the extending of the loan makes 1% of the amount of the given loan
  • Evaluation of the collateral - 20.000 Armenian drams,
  • Insurance is not included,
  • Actual annual interest rate makes 23.60%.

5. RA Government Economy Stabilization Lending Program

Car Purchase loans

  • Maximum loan amount - 7.000.000 AMD
  • Maximum maturity – 60 months
  • Annual interest rate – up to 15%,
  • Prepayment for a new car – 20% at least, for used car – 40% at least.

Other consumer loans

  • Maximum loan amount - 1 500 000 AMD
  • Maximum maturity – 18 months
  • Annual interest rate – up to 18%,

Sample of calculation of annual actual interest rate of other consumer loans

  • Annual interest rate – 18%,
  • Actual annual interest rate is affixed - 19.49%.

6. Purchase of goods on credit

“Anelik Bank” CJSC extends loans to individuals to purchase goods on credit.

  • Maximum loan amount - 2 000 000 AMD
  • Maximum maturity – 36 months
  • Annual interest rate – 21%,
  • Prepayment is based on collaboration agreement.

The loan is secured with the purchased or other property.

Sample of calculation of annual actual interest rate of loans provided for purchase of goods on credit

  • Loan amount- 300.000 Armenian drams,
  • Interest rate- 21% per annum,
  • Term - 24 month,
  • Loan opening commission makes 2000 Armenian drams.
  • Annuity payment
  • Single commission charged at the extending of the loan makes 1% of the amount of the given loan
  • Actual annual interest rate makes 25.28%.

7. Credit lines extended through payment cards

Credit lines extended through payment cards may be given free of collateral or incomplete security.

  • Maximum loan amount - 10.000.000 AMD or equal foreign currency,
  • Credit line is effective up to the effective period of the card,
  • Annual interest rate – up to 24%,
  • Maximum term of credit line repayment makes 45 days,
  • Grace period – no interest is charged against the obligation if the credit line is repaid within 15 days; in other cases interest rate is calculated starting from the date of loan extension.

Loans may be given in both cash and non-cash.

Decision on credit application shall be taken within 3 working days; loan shall be given within 3 working days after the final pack of documents is collected.

Extension of credit lines through payment cards against no security is based on the best international banking practice.

The following types of loans are available:

  • Salary card loans,
  • Loans based on credit history,
  • Loans given in line with other loans
  • Loans based on creditworthiness of the client
  • Loans based on account operation,
  • Loans extended with the motion of clients of he bank or its management,
  • Loans to VIP clients.

Service fee for all types of loans makes 1% of the given loan, unlike Lombard loans, he service fee of which makes 0.8%.

Commission for change or taking off the collateral within the effective period of the loan will make 8000 AMD.

Following verbal and written warning, judicial proceeding shall be applied to charge the collateral of the clients, breaking credit liabilities, the charge may be spread over the other property of the client provided that the collateral is not sufficient to cover the liabilities.

According to collateral agreement it is possible to transfer the property right of the pledged property to the bank.

The following documents shall be submitted to receive loan:

  • Application on the name of the Chairman of the Board (manager of branch),
  • Reference on property right of the pledged property or reference from the notary public on the property being free from right of third parties
  • Income reference (salary, etc)
  • Other documents as required

Method of loan interest calculation

Interest rates against loans are applied towards the balance of the principal amount. Repayment of interest is made on a monthly basis. Based on the special features of the business when repayment of principal amount of the loan it is possible to set unequal distribution repayment schedule. Irrespectively of the currency of the loan repayment of the loan is in Armenian drams only. Exchange currency rates may have an influence on the loan repayment in case of loans extended in foreign currency.

Fines

Fine for each overdue day of the loan (loan and interests) shall amount to 0.1-0.2 % of the obligation, and in case of termination of the loan agreement interest calculated towards the obligation from the date of termination to the obligation repayment date according to banking interest rate set by the CBA.

Availability of the loan

The following minimal requirements may serve as the grounds for availability of commercial loans:

  • Compliance with project requirements,
  • Stable income,
  • Availability of collateral, if otherwise provided by project requirements

Foreign currency influence

Based on the fact that the bank extends loans in both Armenian drams and foreign currency the borrower should understand that foreign currency fluctuations may have both positive and negative influence on repayment of the loan.

Rejection

On request of the customers the Bank may provide written rejection to those applicants who cannot be credited due to failure to comply with project requirements or if the creditworthiness of the borrower is not sufficient for the Bank. The Bank is enabled to inform the rejection to other RA banks and credit companies (RA Law “On banking secrecy”)

Warning:

YOUR PROPERTY MAY BE FORECLOSED IN CASE OF DEFAULT OF INTERESTS AND THE PRINCIPAL AMOUNT OF THE LOAN.

INFORMATION ON FAILURE TO PAY OFF INTERESTS AND THE PRINCIPAL AMOUNT IN A DUE TIME WILL BE REGISTERED AT THE CREDIT REGISTER.

Last update 21.12.2011, 09:23