Student Loan

Purpose of the loan

Payment of tuition fees for students of Bachelor’s and Master’s degrees, as well as Clinical residency of RA State Higher Educational Institutions and those accredited by the RA

Currency of the loan

AMD

Minimum term of the loan

12 months

Maximum term of the loan

Term of studies + 6 years, no more than 10 years (the loan may be provided for a shorter period upon the client’s consent only) the term of studies shall be deemed to the be the years of studies by Bachelor’s, Master’s program or Clinical residency

Minimum loan amount

Not specified

Maximum loan amount

800,000 AMD, but no more than the amount of one year tuition fee. Moreover, 1 loan only may be provided for each academic year

Sum of loans provided during the whole term of study

Maximum AMD 4,000,000 throughout the whole course of study in 5 tranches (one tranche per academic year)

Method of repayment

monthly equal payments, moreover, during the studies the borrowers pay interest only (up to 4 years), while after graduation the principal amount of the loan and interest payments are paid off equally

Annual nominal interest rate

9%, of which 2% to be subsidized by the government for all students, 3% to be subsidized by the government for students with excellent progress for the last year. Within the framework of the 14th program of the Government of the Republic of Armenia “Neutralization of Economic Consequences of Coronavirus”, the following conditions will apply for subsidizing the loans from May 1st to December 31st, 2020: 1. Students whose total average quality grades are 80% and higher starting from the beginning of study to the first term of the 2019-2020 academic year, will get full state subsidiary of the interest rate of their new and existing loans in the period 01/05/2020-31/12/2020. 2. Students whose total average quality grades are less than 80% starting from the beginning of study to the first term of the 2019-2020 academic year, will get 5% state subsidiary of the interest rate of their new and existing loans in the period 01/05/2020-31/12/2020.

Annual actual interest rate

9.38%

Loan disbursement/service fee

Not specified

Opening and maintaining of current account

Free of charge

Fine/penalty for overdue loan /interest

0.1% daily

Early repayment fee

Not specified

Disbursement method

Non-cash, by transferring the amount on the account of the HEI

Security

Guarantee of student's parent (s), guardian (s) or other persons

Status of the borrower

1) RA citizen physical person.

2) Bachelor's or Master's program students or clinical residency students of paid education system of RA state HEI or state accredited HEI

Requirements to the guarantor

1) the guarantor must have income (in case of more than one guarantors at least one of the latter must have income). The guarantor’s income may not be required in case if the borrower has income.

2) the guarantor must be 21-68 years old as of the date of acceptance of the loan application.

Requirements to the credit history (for the first and each next stage of providing the loan) of the borrower/ guarantor

1) by the date of loan application, the borrower/guarantor must not have any overdue obligations (loan, credit line, overdraft, guarantees, etc.)

2) aggregate days on overdue obligations of the borrower/guarantor over the year (365 days) preceding the date of application must not exceed 30 days

3) the guarantor had no nonperforming loan obligations over the two years preceding the date of loan obligations

4) No credit history is acceptable

5) The customer should not be included in the list of unwanted customers of the Bank.

Positive factors for loan provision

Good credit history

Factors for loan rejection

1) Bad credit history,

2) providing of false or unreliable information,

3) provision of such information, which puts return of the credit line into suspicion,

4) the loan, which has been provided to a student within the scope of this program before, was recognized as unqualified by a refinancing organization

5) other factors

Maximum term for making decision

Maximum 2 business days after submitting all required documents to the Bank

Term for notifying the borrower about the decision made

Maximum 1 business day after decision-making

Term during which the loan is provided

Maximum 1 business day after making positive decision

Maximum term, during which the decision remains valid

15 business days

Place of acceptance, registration and providing the loan application

All branches of the Bank

Documents to be submitted by the client /guarantor to the Bank

According to annex 1.1

Information regarding credit history and credit score

You can learn about the importance of credit history and credit score here․

Details via abcfinance.am and acra.am links.

1

ATTENTION: INTEREST PAYMENTS ARE CALCULATED BASED ON THE NOMINAL INTEREST RATE. THE ANNUAL EFFECTIVE PERCENTAGE RATE INDICATES THE TOTAL COST OF THE LOAN TO YOU, INCLUDING INTEREST PAYMENTS AND ALL MANDATORY FEES RELATED TO THE ISSUANCE AND SERVICING OF THE LOAN, PROVIDED THAT ALL PAYMENTS ARE MADE IN THE AMOUNTS AND WITHIN THE TIMEFRAMES SPECIFIED IN THE LOAN AGREEMENT.

2

THE PROCEDURE FOR CALCULATING THE ANNUAL EFFECTIVE PERCENTAGE RATE IS PRESENTED WITH THIS LINK.

3

The Bank has the right to unilaterally amend the material terms of the loan, including the loan interest rate, or to require early partial or full repayment։ RULES FOR LENDING UNDER MASTER LOAN AGREEMENT CONCLUDED WITH “ID BANK” CJSC

4

A POOR CREDIT HISTORY MAY HINDER THE CUSTOMER’S ABILITY TO OBTAIN A LOAN IN THE FUTURE.

5

IN THE EVENT OF OVERDUE OBLIGATIONS, REPAYMENTS SHALL BE APPLIED IN THE FOLLOWING ORDER: EXPENSES INCURRED FOR DEBT RECOVERY, INCLUDING COURT COSTS (IF ANY), PENALTIES ON INTEREST, PENALTIES ON THE LOAN PRINCIPAL, INTEREST, SERVICE FEES AND COMMISSIONS (IF ANY), AND THE LOAN PRINCIPAL. THE BANK RESERVES THE RIGHT TO UNILATERALLY CHANGE THE ORDER OF REPAYMENT SPECIFIED IN THIS CLAUSE AT ANY TIME.

6

Disputes arising between the parties may be resolved through the courts or through the Financial System Mediator (in accordance with the procedure established by the RA Law on the Financial System Mediator), address: 15 M. Khorenatsi Street, Elite Plaza Business Center, 7th Floor, Yerevan 0010, Republic of Armenia, e-mail: [email protected], telephone: (+37460) 70-11-11, fax: (+37410) 58 24 21. Furthermore, if the amount of the property claim does not exceed AMD 250,000 (two hundred fifty thousand) or its equivalent in foreign currency, the decisions of the Financial System Mediator may not be challenged by the Bank.

7

The Bank may, for the purposes of customer due diligence as required by the RA Law on Combating Money Laundering and Terrorist Financing, request additional documents or information based on the “Know Your Customer” (KYC) principle.

8

Pursuant to the agreement concluded with the United States under the Foreign Account Tax Compliance Act (FATCA), the Bank may collect additional information to determine whether the customer is a U.S. taxpayer, as well as to provide the State Revenue Committee of the Republic of Armenia with information on customers who are foreign tax residents in accordance with the Common Reporting Standard (CRS) of the Organisation for Economic Co-operation and Development (OECD), as prescribed by the RA Tax Code.

9

THE BORROWER HAS THE RIGHT TO COMMUNICATE WITH THE BANK THROUGH THE METHOD OF THEIR CHOICE, EITHER BY POSTAL MAIL OR ELECTRONIC MEANS. RECEIVING INFORMATION ELECTRONICALLY IS THE MOST CONVENIENT OPTION. IT IS AVAILABLE 24/7, ELIMINATES THE RISK OF LOSING PAPER DOCUMENTS, AND ENSURES CONFIDENTIALITY.

10

DURING THE TERM OF THE LOAN AGREEMENT, INFORMATION ON THE TERMS FOR THE PROVISION OF STATEMENTS, DUPLICATE STATEMENTS, AND CERTIFICATES IS AVAILABLE AT THE FOLLOWING LINK: Tariff:

11

The list of the Bank’s branches and ATMs, as well as their addresses and business hours, is available at the following link: Branches and ATMs.

12

ATTENTION: WHEN APPLYING FOR A LOAN, THE LENDER WILL PROVIDE YOU WITH AN INDIVIDUAL SHEET OF THE ESSENTIAL TERMS OF THE CONSUMER LOAN, WHICH WILL PRESENT THE INDIVIDUAL TERMS OF THE LOAN TO BE PROVIDED TO YOU.

13

WARNING: YOUR PROPERTY (HOME, VEHICLE, OR OTHER ASSETS) MAY BE SEIZED IN ACCORDANCE WITH THE LAW IF YOU FAIL TO MAKE TIMELY PAYMENTS OF INTEREST AND REPAY THE LOAN AMOUNT.