Question 1

Tariffs and Terms for Issuing Copies of Contracts Concluded with the SME Legal Entities and Individual Entrepreneurs

Accepted Answer

You can find detailed information about tariffs and terms for Issuing copies of contracts concluded with the SME Legal Entities and Individual Entrepreneurs here.

Question 2

Important to know

Accepted Answer

◾The Bank may request additional documents or other information from the consumer based on the “Know Your Customer” principle for the purpose of conducting due diligence on the customer as defined by the RA Law “On Combating Money Laundering and Financing of Terrorism”, as well as ask the consumer additional questions during oral communication (if such a request exists).

◾In accordance with the agreement signed with the United States based on the Foreign Account Tax Compliance Act (FATCA), the Bank may collect additional information to determine your US taxpayer status.

◾ATTENTION: Loan interest is calculated based on the nominal interest rate. The annual percentage rate shows how much the loan will cost you if you pay the interest and all mandatory payments for the loan and its servicing within the specified period and amount. You can find the procedure for calculating the annual percentage rate here.

◾WARNING: Your property (house, car, or other) may be seized in accordance with the law if you fail to make timely repayments of your interest and loan amounts.

◾ATTENTION: In case of failure or incomplete fulfillment of your obligation, the lender will send this data to the credit bureau after 3 business days, where your credit history is formed. You have the right to obtain your credit history from the credit bureau once a year for free. A bad credit history may hinder you from obtaining a loan in the future.

◾ATTENTION: “Your Financial Directory” www.fininfo.am is an electronic system that facilitates the search, comparison of services offered to individuals and the selection of the most effective option for you.

◾ATTENTION: When applying for a loan, the lender will provide you with an individual consumer loan essential terms sheet, which will present the individual terms of the loan to be provided to you.

◾The borrower has the right to unilaterally terminate the loan agreement without giving any reasons within 7 business days following its conclusion, unless a longer period is provided for in the loan agreement (cooling off period). In that case, the borrower is obliged to pay interest to the Bank for the use of the loan amount, which is calculated in accordance with the annual effective interest rate provided for in the loan agreement. No other compensation may be required from the consumer in connection with the termination of the loan agreement.

◾The borrower has the right to fulfill (repay) his obligations under the loan agreement ahead of schedule, regardless of whether such a right is provided for in the loan agreement or not.

◾You have the right to communicate with Ardshinbank CJSC in your preferred way: by mail or electronically. Receiving information electronically is the most convenient. It is available 24/7, is free from the risks of losing paper information, and ensures confidentiality.

Question 3

Information about Score and Credit History

Accepted Answer

You can find detailed information about Score and Credit history here.

Question 4

Additional Notes

Accepted Answer

the borrower shall be entitled to prematurely discharge (redeem), in full or in part, the liabilities under the contract, in which case the principal loan amount shall be reduced in the amount being paid; the total expenditures for lending the borrower shall be reduced proportionally. in that case, the interest accrued to the balance of the principal loan amount and the maintenance fee accured to the balance of the principal loan amount shall be subject to reduction from the total lending costs. meantime, in the event of exercising its right hereunder, the bank may not apply responsibility measures.

In the event of overdue liabilities, the redemptions shall be made in the following sequence: receivables payable to the Bank by the Borrower as part of the credit contract, forfeit penalty settled for (accrued to) the overdue interest, interest settled for (accrued to) the overdue Loan, loan service fee, term interest settled (accrued) for the use of the Loan, the Loan amount.

The Bank's MOBILE BANKING application enables features such as money transfers, loan redemptions, viewing of account balances and performance of transactions, payments and numerous other transacctions available by following the link below:

The appraisal of the real estate being pledged shall be made solely by companies collaborating with the Bank, the information whereon shall be published on the Bank's official website at www.ardshinbank.am.

ATTENTION:

In the event of foreign currency loans, changes in the foreign currency exchange rate may influence the amount of loan redemptions.

In the event of foreign currency loans, the actual annual percentage rate may change depending on changes in the exchange rate published on the website of the Central Bank of Armenia.

In the event of foreign currency loans, the actual annual percentage rate shall be settled based on the exchange rate approved as of the given date as published on the CBA official website at www.cba.am.

ATTENTION:

The loan interests shall be settled based on the nominal percentage rate. And the actual annual percentage rate shall reveal the loan value for the specific client in case of paying the established fees within prescribed timeframes and in established amounts. Information about the procedure of settling the actual annual percentage rate can be accessed by visiting the Bank's official website at www.ardshinbank.am

Your property may be confiscated in a manner prescribed by law in the event you fail to make, in a timely manner, the interest and loan redemptions. In the event of your non-performance or incomplete performance of the liability, the lender shall, after 3 business days, send the information to the credit bureau to have your credit history generated. You are entitled to annually receive a free copy of your credit history from the credit bureau. a negative credit history may obstruct your chances of receiving a loan in the future. Financial institutions in the republic of Armenia are supervised by the central bank of Armenia.

Annex 1.1 Annual Percentage Rate for a Short-Term Period²
Financing source		ARDSHINBANK OJSC		Intetrnational funds and/or assistance programs¹
Loan currency	AMD	USD	EUR	AMD
Loan maturity	AMD	USD	EUR	AMD
0-3 months	8%	5%	4%	-
4-6 months	8.75%	6%	4.50%	-
7-9 months	9.50%	6.75%	5.25%	9.75%
10-12 months	10.50%	7.25%	5.75%	10%
Annual Percentage Rate in the Long Term
Financing source		ARDSHINBANK OJSC		International funds and/or government assistance programs¹
Loan currency L	AMD	USD	EUR	AMD
Loan maturity (calcualted from the date of signing the contract)	AMD	USD	EUR	AMD
Up to 24 months -	11.5%	8.1%	6.8%	11%
25-36 months -	11.5%	8.1%	6.8%
37-60 months -	11.5%	8.1%	6.8%
¹The terms of loans issued within funds and/or government assistance programs shall comply with the requirements set by such funds and/or government assistance programs. ²For loans issued via international funds - if the loan interest rate, currency or issuance period run counter to the requirements of international funds – we guide ourselves by the corresponding funds' requirements. Loans issued via funds shall have a minimum 6 months' maturity period.

Annex 1.2 Requirements and Restrictions Applying to the Borrower, Guarantor, Pledger and the Borrower's Activity
Borrower³	A legal entity engaging in entrepreneurship, including agriculture, or an individual entirepreneur (IE) registered in Armenia
Borrower's age	The Borrower, if acting as an IE, shall be aged no more than 70 (up to 71 included) until loan maturity.
Requirements applying to the Borrower's activity ³	1. Minimum period for state registration and actual business activity (the calcualtion shall cover also the affiliated company's business activity with a guarantee by the latter): 6 months 2. Requirements applying to capital and income: the total capital and income for the latest reporting year cannot be simultaneously negative 3. Place of business: territory of the Republic of Armenia
Requirements applying to the Borrower's activity ³	In case of a lending via the GAF ADB Woman fund The company shall comply at least with one of the following requirements: a) at least 50% of the company is owned by women, or b) at least 60% of the key managers in the enterprise are women, or c) 50% of the company's registered staff are women
Requirements applying to loan liabilities of third party guarantors and pledgers	1. Abesnce of loans classifed above “controlled” in the past year 2. Absence of existing overdue and classified liabilities
³For loans issued by international funds or within government assistance prorgrams, borrowers shall comply with the requirements of such funds or government assistance programs as stipulated by the latter.

Appendix 1.3 Real Estate
Financing/pledge maximum ratio¹	Yerevan, Armenia		Armenia, apart from the city of Yerevan	Land plot
	85%		80%	70%
In case of applying insurance to the unsecured part, the Borrower may benefit from financing of up to 100% starting from the ratio specified above.
Terms and Requirements Applying to the Collateral
Property address		The addresses in the 1^st, 2^nd and 3^rd zones as classified in the zoning list, as well as the communities in the 4^th zone pursuant to Clause 19; Clause 18 shall apply to the land plots
Appraisal of the pledged asset (collateral)		The pledged asset (collateral) shall be appraised by a specialized organization collaborating with the Bank except in the cases prescribed by the internal legal acts of the Bank
		In case of public or manufacturing premises, the loan decision-making may be also made based upon a preliminary appraisal report provided that the final appraisal report shall be submitted by the client prior to loan issuance.
Pledger		Individual borrower or their spouse (including an IE), founder of an organization, or
		Any individual of full legal age (including an IE) and legal entity facing no restriction provided the right to ownership of the pledged property originated no later than 3 months prior to submitting the application¹,
Requirements applying to real estate being pledged		1. A real estate unit of residential, public or manufacturing value, as well as an underdeveloped residential and public land plot may be a pledge
		2. The real estate shall have a stone, panel or iron-concrete structure (apart from partition walls and inter-floor covers). The real estate shall be at least 80% complete. The maximum requirement is without interior design. Semi-constructed, incomplete or semi-dillapidated properties may not be a collateral.
		3. The residential real estate may not be furnished with the necessary communications (assembled waterline, electric wires), but their absence shall not cause the property to lose its attraction
		4. The real estate shall not be a public housing or be located on the premises of any other facility, i.e. – a former dormitory or hotel or any other public facility or administrative building; it shall not be a garage, a parking lot or a car hangar.
		5. Properties in multi-apartment blocks may not be a collateral provided the dismantling of the illegal buildings and facilities forming part thereof will cause the property to lose its attraction, or the real estate unit in multi-apartment blocks with makeshift (illegal) premises surpasses 50% of the legal premises. Exceptions shall apply to cases when more than 1 property units is being pledged and the liquidity value of the said pledge does not exceed 55% of the pledge basket. Property units without state registration of the ownership right may not be a subject of pledge (collateral).
		6. The real estate shall not be in a building with Level 3 or higher emergency or shall not be above Level 3 emergency.
		7. Whenever the property being pledged has an unpaid cadastral value, the sum total of the unpaid cadastral value and the loan shall not exceed more than 80% of the financing pledge liquidity value.
		8. The construction value shall be minimum 15% in zone 1, minimum 25% in zone 2, minimum 30% in zone 3 and minimum 40% in zone 4 in the total pledge value.
		9. If the real estate is owned by individuals (natural persons) under the right of common join and/or shared ownership, all the shares shall be simultaneously deemed a pledge, with all the co-owners acting as pledgers.
		10. A residential real estate shall have an inter-floor cover ceiling not lower than 2.5m.
		11. The residential real estate shall not be socular, or on technical-level basement and semi-basement floors. Residential houses with the surface area of each of the said units surpassing half of the home total surface may not be a subject of pledge.
		12. Properties sharing a common space with another property unit, a land plot pertaining to a residential house (or a part thereof) belonging to the owners under the right of lease or gratuitous use or servitude may not be a subject of pledge.
		13. Residential houses with two and more shared walls with other owners’ property may not be a subject of pledge. Exceptions shall apply to newly constructed townhouses.
		10. A residential real estate shall have an inter-floor cover ceiling not lower than 2.5m.
		14. Real estate having a part handed over for gratuitous use under a court ruling may not be a subject of pledge.
		15. Whenever the real estate being pledged is a private residence, it shall be fullը pledged. Whenever it is a land plot of a property unit being pledged, it shall be privately owned, as well as have a paid cadastral value. The land plot shall have an entrance detached from community lands.
		16. The real estate shall not be on a territory declared a prevailing public interest.
		17. Opinion by the Problem Assset Management Department (PAMD) with respect to properties with AMD 50 million and higher liquidity value: opinions shall be issued only with respect to properties with public and manufacturing value (without site examination by the PAMD) based upon photos by the evaluating organization.
		18. The city of Yerevan, except as specified in clauses 1-18, as well as the following cities and towns and rural communities: Vagharshapat, Masis, Artashat, Ashtarak, Abovyan, Tsaghkadzor and Gyumri (except for the properties in zones 10-13 of the city of Gyumri included in the territorial assessment zones of the Republic of Armenia under Armenian Government Decision 1023N dated June 4, 2020), Dilijan (except for “Rotonda” [framed by coordinates: 40.740218, 44.870844-40.739515, 44.872049-40.737235, 44.868397-40.734627, 44.867563-40.734233, 44.865617-40.737746, 44.864841-40.740218, 44.870844 ), upper part of the “Kaghni Khach district” [framed by coordinates 40.748196, 44.886507 - 40.749033, 44.888828- 40.747623, 44.890443-40.746229, 44.887918-40.748196, 44.886507) and ՙՙTakhta Gorge Section՚՚ (framed by coordinates 40.751559, 44.898396- 40.753051, 44.902820-40.751928, 44.902448-40.750994-44.899839-40.751559, 44.898396]), Ijevan, Yeghegnadzor, Ajapnyak district in Jermuk, towns of Goris and Kapan, as well as Byureghavan, Argavand, Parakar-Tairov, Geghanist, Balahovit, Getargel, Yeghvard, Arinj, Dzoraghbyur, Jrvezh, Kasakh, Proshyan, Zovuni, Verin and Nerkin Ptghni, Ayntap, Nor Kharberd, Kanakeravan¹.
		19.Ararat region, village of Taperakan, village of Nor Kyank, Dimitrov, village of Masis, Azatavan, Marmarashen, Jrahovit, Arevabuyr, Mrgavet, Baghramyan (Artashat), Berkanush, Goravan, Dalar, Vostan, Vosketap, Aygavan, Nizami, Sayat-Nova, Dashtavan Armavir region: village of Armavir, village of Voskehat, village of Tsaghkunk Aragatsotn region: village of Kuchak, village of Voskevaz, Parpi, Ohanavan, Nor Yerznka Kotayk region: village of Kotayk, village of Akunk, Getargel, Bjni, Alapars, Karenis Shirak region: village of Vahramaberd, village of Mayisyan, village of Azatan Syunik region: village of Syunik (Kapan), village of Halidzor (Goris), village of Shinuhayr (Goris) Vayots Dzor region: village of Areni, village of Aghavnadzor, village of Gladzor, village of Malishka Lori rgion: village of Margahovit, village of Gyulagarak, Tumanyan, Dsegh, Debet, Arevshogh, Jrashen, Gargar Tavush region: Noyemberyan, village of Koghb, village of Getahovit, Teghut Gegharkunik region: village of Nerkin Getashen, Vardenik, villagw id Yeranos, Lichk
Term for the structruing of a subsequent pledge, including in cases of refinancing from other financial institutions		Pledging in the Bank subject to the rules of the subsequent pledge of real estate
Number of pledged items²		The number of pledges is unlimited.
Pledge of share and/or stock		Only in cases when the real estated being pledged is owned by a legal entity, 100% of the share/stock owned by the latter shall be pledged.
¹ The 3-month restriction applying to the origination of the ownership right shall apply only to case when the basis for property acquisition is donation or purchase and sale except in cases when such donation or purchase and sale was made by communities and the state.
²Whenever the issuance of a loan subject to the terms herein implies acquisition of property, it may also be a collateral. Moreover, the property being acquired shall be used for entrepreneurial purposes, with the borrower, as well as their spouse (if married) acting as an owner and a pledger as a result of the transaction (a natural person/individual in case of an IE and an individual stock-holder owning at least 50% of shares in case of a legal entity) unless otherwise prescribed by the legsilation of Armenia and/or the legal relationship between the spouses with the borrower abiding by the tax liabilities prescribed by the Tax Code of Armenia.

Appendix 1.4 Terms of Loan Transition from Short- to Long-Term Period¹
Term applying to loan risk category	Absence of liabilities classified above the standard category (based on objective criteria) and existing overdue liabilities
Term applying to accrued interests	1. In case of the client’s application, absence of accrued interests 2. In case of the absence of the client’s application, the accrued and unpaid interests (if any) shall be rescheduled to the first day of the long-term period
For a long-term period	1 In case of the client’s application, based on the time period specified therein 2 In case of the absence of the client’s application: 60 months
Procedure for loan transition from short- to long-term period	Subject to the contract signed with the client
¹ The transition shall be the end of the last day of the short-term time period or in the event of a non-business day - the end of the next business day

Appendix 1.5 Documents Required for Application Acceptance and Review/Analysis
Loan application	Original copy
State registration certificate issued by the State Register Agency of Legal Entities, charter (of the legal entity), for joint-stock companies also a list of stock owners (nominees), i.e. – reference from the depository (1 month)	Original copy (not required if available from a source of general access)
Profit tax report submitted to the State Revenue Committee (SRC) (for the latest year) or turnover tax report or license (certified) tax report for the latest year³	Original copy (not required if available from a source of general access)
In case of a pledged property, preliminary appraisal report or, if available, appraisal report and a document certifying the right of ownership to the property being pledged	Original copy
Identity document of the IE, their spouse (if any), marriage certificate, (in the event of a deceased spouse, marriage and death certificates, and a divorce certificate if divorced), for legal entities, identity documents of the shareholders (stock-holders, participants) with 20% and higher participation	Original copy
Identity documents of the Guarantor(s), Identity documents of the Pledger(s)	Original copy
Мeeting or participant's meeting decision (not required if the director and the sole participant of the legal entity, the LLC, is the same person)	Original copy
Other	Other documents (if necessary)

SME-FLEXI

Annex 1.1

Annex 1.2

Annex 1.3

Annex 1.4

Annex 1.5