Cash collateral loans

PLEDGED ASSETS AND/OR FUNDS MAY BE SUBJECT TO FORECLOSURE iN ACCORDANCE WITH THE PROCEDURES LAID DOWN BY LAW, IF THE LOAN AMOUNT AND INTEREST ARE NOT PAID ON TIME. PLEASE NOTE: THE BANK SHALL SEND

CUSTOMER INFORMATION TO THE CREDIT BUREAU WITHIN ONE WORKING DAY AT THE LATEST, WHERE THE CUSTOMER’S CREDIT HISTORY IS FORMED. THE CUSTOMER IS ENTITLED TO OBTAIN THEIR CREDIT HISTORY FROM THE CREDIT BUREAU FREE OF CHARGE ONCE A YEAR. PLEASE NOTE: A POOR CREDIT HISTORY MAY PREVENT THE CUSTOMER FROM OBTAINING LOANS IN THE FUTURE.

Account opening fee (if the customer does not have an account with the Bank)

Tariffs for bank accounts, transfers, and other services provided by “ID Bank” CJSC to legal entities and individual entrepreneurs—both residents and non-residents of the Republic of Armenia

Repayment of the loan and interest

1.Interest payments: monthly

Features of the credit line

1. On a revolving credit line

2. An annual interest rate of 0% applies to the unused balance of the credit line

3. Where the credit line is provided via a Visa Business payment card , no interest shall accrue on non-cash amounts of the credit line utilized during the previous month (with the exception of card-to-card transfers, intra-bank and inter-bank transfers within Armenia, and transfers between the customer’s own accounts), provided the customer repays the utilized portion of the credit line in the manner specified by the 15th of the current month

4. Mandatory monthly crediting to the card account of interest accrued as at the last day of the previous month shall be made by the 15th day of the current month.

Method of granting a loan/credit line

1. Loan/credit line provided in non-cash form by transfer to the customer’s bank account

2. Non-cash settlement via the provision of a Visa Business payment card in accordance with the applicable tariffs available at the following: link

Conversion of the loan/credit line amount into cash when withdrawing cash from a bank account

1. Not required in the case of deposited cash funds,

2. In the case of non-cash funds deposited in accordance with the tariffs specified at the following link

Credit history requirements

1. A credit history is not required.

2. No overdue or classified liabilities as of the date of granting the loan

Collateral

Cash and/or rights of claim to cash belonging to the customer or third parties

Maximum loan-to-value ratio*

Loans/Credit Lines granted in the same currency as the collateral:95 per cent if interest is paid upon loan disbursement

Insurance of the collateral

Not required

Extension of the loan/credit line*

Without any restrictions, subject to the lending terms in force on the date of renewal, provided there are no overdue obligations as of the date of renewal.

*If the amount of the loan/credit line exceeds 100,000,000 AMD or 200,000 USD/EUR, the annual interest rate is determined in accordance with the terms of the agreement.

Where to submit an application and arrange a loan

Bank branches and Head Office

Factors supporting loan approval

1) a positive credit history

2) the collateral meeting the Bank’s requirements

3) a good reputation

4) other factors

Factors leading to a loan refusal

1) a negative credit history

2) insufficient financial standing

3)failure of the collateral to meet the Bank’s requirements

4) provision of false or inaccurate Information

5) provision of information that raises doubts about the customer's ability to repay the loan

6) other factors

Maximum time limit for making a decision

1 working day following submission of the complete set of documents required by the Bank

Time limit for notifying the customer of the decision

1 working day*

*The Bank may notify the customer of its decision regarding the granting of a loan at the Bank’s premises, by telephone or by email.

Validity period of the decision*

30 working days

*The Bank reserves the right to refuse to extend a loan/credit line if the loan or the conditions deemed necessary for a positive decision on the granting of the loan/credit line (e.g. a change in the value of the collateral, overdue obligations, the freezing or restriction of bank accounts, etc.)

Time limit for reconfirming the decision

Within 30 working days following the expiry of the decision, subject to the lending terms in force on the date of reconfirmation

Loan/credit line disbursement period

1 working day

List of documents to be provided by the customer

The list of the required documents is available at the following link: List of Documents