IDBusiness Shoppy Package Overdraft

Client

RA resident legal entities and private entrepreneurs (“Idram” LLC partners accepting contactless payments)

Purpose

overdraft extended through Visa Business payment card for the purpose of replenishment of working capital

Currency

AMD

Minimum amount

1,000,000

Maximum amount

50,000,000

Minimum term

6 months

Maximum term

36 months

Nominal annual interest rate

starting from 16%

Effective annual interest rate

17.1-18.5%

Monthly service fee

not defined

Loan application review fee

not defined

Disbursement fee

not defined

Overdraft amount and interest amount repayments

Mandatory monthly accomplishment of the card account in the aggregate amount of the 20% of the used overdraft amount as of the last day of the previous month and accumulated interest amounts before the 15th of the current month,

repayment of the total overdraft amount at the end of term. Repayment of interest amounts – through depositing funds to the bank/card account in the amount of accrued interest amount per deposit.

Moreover, in certain cases according to the decision of the Bank’s competent body interest may not be calculated towards the overdraft amounts used in a non-cash way for the preceding month (except for card to card transfers, intrabank and interbank transfers on the RA territory through the Bank-Client system and transfers between personal accounts),

if the client repays the overdraft amount used in the mentioned way before the 15th of the following month.

Minimum business activity term (uninterrupted)

6 months

Provision of Visa Business payment card

According to tariffs applied by the Bank (except for the annual card service fee which is not defined for the first year of card activity).

Other requirements to the borrower

In case of borrowers with a status of a PE the age of the latter must not exceed 65 years by the overdraft repayment date.

Requirements to the borrower’s credit history

1. Absence of overdue/classified liabilities as of the date of overdraft extension,

2. Absence of more than 30 overdue days in the 12 months prior to the submission of the application

Security

• Creditworthiness assessment, • real estate property,

• Fixed assets /equipment, technical appliances, other property/,

• Means of transportation,

• Commodities in circulation,

• Right to receivables,

• Financial flows (future cash flows),

• Guarantees, warranties,

• Funds,

• Precious metals (items),

• Shares,

• Securities,

• Pledge of rights,

• Other property of property rights not, prohibited by RA legislation

Loan/Collateral (estimated liquid value of the collateral) ratio

According to the decision of the Bank’s competent body maximum 50-100% depending on the type of collateral (in case of loans secured by property collateral). According to the decision of the Bank’ competent body the loan can also be extended without security of property collateral or simultaneously with the security of property collateral and other security (guarantee, future cash flows, property right etc.).

Collateral insurance

according to the decision of the Bank’s competent body insurance of the collateral can be required from of the loan balance or the estimated market/liquid value of the property

Bank account opening and servicing

one AMD bank account is opened free of charge

Fines, penalties

penalty on overdue overdraft amount – 0.1 per day,

penalty on overdue interest amount – 0.1% per day,

no early repayment penalty is defined

Location of application acceptance and overdraft processing

all branches of the Bank

Positive factors of extension

1) good credit history,

2) positive creditworthiness estimation,

3) sufficient financial condition,

4) good reputation,

5) other factors.

Rejection factors

1) bad credit history,

2) negative creditworthiness estimation,

3) ՓԼ/ AML/CFT restrictions,

4) insufficient financial condition,

5) providing false or unreliable information,

6) providing such information that calls into question the return of the overdraft,

7) other factors.

Maximum decision-making term

up to 3 business days after submission of the package of complete documents required by the Bank

Term for notifying the client about the decision

1 business day

Decision validity term

30 business day

Decision reaffirmation term

maximum 2 times under the conditions of overdraft extension applied as of the date of reaffirmation

Overdraft extension term

Maximum 3 business days after submission of the package of complete documents required by the Bank and registration of the right of pledge after the decision on overdraft extension has been passed, unless the client wishes to receive the overdraft later while observing the term mentioned in paragraph 28