Collateral requirements

The following items may be pledged to secure the repayment of the loan: standardized gold bullions, jewelry, at "Gyumri" Branch - also precious stones (diamond, emerald, ruby; notably, the total appraised value of precious stones in a piece of jewelry should not exceed AMD 120,000).

Loan currency

Armenian Drams

Loan period

From 1 to 12 months

Minimum loan amount per borrower

AMD 50,000

Maximum loan amount per borrower

AMD 4,000,000

Nominal interest rate per annum

22%,

Interest rate is accrued on the balance of the outstanding loan on the basis of a 365-day year.

Loan amount to appraised collateral value ratio

1. 95% of the appraised value of the collateral, providing that the interest to be accrued during the entire loan period is paid at the time of the loan disbursement.

2. 90% of the appraised value of the collateral, if interest is paid on a monthly basis.

3. 50% of the appraised value of a precious stone, but not more than AMD 60,000 per piece of jewelry.

4. In the event the borrower delays the loan repayment or fails to repay the amount when due and payable, the pledged property shall be subject to seizure in the manner set out under the collateral agreement.

Principal repayment schedule  

At the end of the loan period

Loan extension and credit account service fee 

A lump sum payment at the time of loan:

• AMD 1,000 - for loans under AMD 100,000
• AMD 2,000 - for loans of AMD 100,001 to AMD 200,000
• AMD 3,000 - for loans of AMD 200,001 to AMD 400,000
• AMD 5,000 - for loans of AMD 400,001 to AMD 800,000
• AMD 7,500 - for loans of AMD 800,001 to AMD 1,200,000
• AMD 10,000 - for loans of AMD 1,200,001 to AMD 1,600,000
• AMD 12,500 - for loans of AMD 1,600,001 to AMD 2,000,000
• AMD 15,000 - for loans above AMD2,000,001

Pre-payment right

No penalty is charged for the loan pre-payment if the loan amount exceeds AMD 100,000 or the equivalent currency.

In case the loan is pre-paid within one month from the date of loan disbursement, a penalty is charged for each unused day at 0.05% of the pre-paid amount unless the loan amount exceeds AMD 100,000.  

Eligibility requirements

1. Any persons irrespective of their citizenship,

2. Borrowers' age at the time of loan extension should not be under 18.  

Appraisal tariffs for pledged jewelry

500 carats - AMD 8'600 per gram,

583 carats - AMD 10'000 per gram,

585 carats - AMD 10'000 per gram,

750 carats - AMD 12'800 per gram,

875 carats - AMD 15'000 per gram,

900 carats - AMD 15'400 per gram,

958 carats - AMD 16'400 per gram,

999 carats - AMD 17'100 per gram.  

Loan extension

1. The appraisal is performed by an expert-jeweler, who has signed a material liability agreement with the Bank,

2. The appraisal statement serves as a basis for signing the loan agreement, 

3. Appraisal is performed according to the tariffs approved by the Director General,

4. The pledged collateral is left with the Bank for safekeeping. 

List of documents to be submitted by borrowers

1. Loan application in the form accepted by the Bank,

2. Identity card,

3. Social card (if any).

Decision making bodies

Branch managers;

Small Credit Committee of Bank, if the loan amount is over AMD 4,000,001.