Shin Capital Group

Main conditions

Documents

Loan currency	AMD	AMD
Application acceptance and loan procession at	All the branches of the Bank, Head Office
Loan financing source	National Mortgage Company RCO CJSC**	ARDSHINBANK OJSC
Loan purpose	Acquisition of apartments and a parking lot* (in case of simultaneous purchase of an apartment) currently under development with a completed development design in the residential blocks at 21/4 Leningradyan Str., Yerevan, Armenia Developer: Shin Capital LLC
Minimum loan amount	AMD 3,000,000	Not defined
Maximum loan amount	AMD 35,000,000	AMD 100,000,000
Type of percentage rate	Fixed	1. Fixed, 2. Floating¹
Annual percentage rate Fixed	In case of receiving salary with the bank's card 14.2% In case of not receiving salary with the bank's card 14.5%	1. 14% for loans up to AMD 35.0mln (inclusive) 2. 14.7% for loans above AMD 35.1mln
Annual percentage rate Floating²	-	1. SR+5.5% for loans up to AMD 35.0 (inclusive) 2. SR+5.9% for loans above AMD 35.1 mln
Actual annual percentage Fixed	15.2% - 16.1%	15% - 15.8%
Actual annual percentage Floating	-	13.3% - 13.7%
Minimum timeframe	10 years
Maximum timeframe	20 years
Loan and interest redemptions	Monthly annuity payments
Minimum prepayment from apartment purchase value	10%	10%
Loan application review fee	AMD 5,000
One-off commission for loan issue	not established
Pledge procession fee²	AMD 53,100 per property unit (apartment or parking lot)
Monthly loan maintenance fee	Not established
Other fees for property procession	1. The borrower pays for: 1) Property evaluation (development activities in case of completed property) 2) Acceptance of a unified reference on propoerty restrictions 3) Notarial authentication of pledge contracts 4) After completing construction - the borrower's ownership, and - state cadastral registration of the Bank's rights of pledge
Insurance	arranged with the Bank’s resources
Opening of a bank account/Issuance of statements	Subject to the terms and tariffs effective at the Bank for the opening and maintenance of accounts Free: for a statement covering up to 1 month's records Free: at least four times annually upon the borrower's request for a period of time specified by the latter AMD 1,000-5,000 for statements and references covering any other time period (see Bank Account)
Maximum Loan/Pledge ratio	90% of real estate value	90% of real estate value	70% of real estate value
Settlement of maximum Loan/Pledge ratio Settlement of real estate value	1. In case of purchasing property under development, the purchase value specified in the reference provided by the seller 2. In case of purchasing completed property, the least between the evaluated market and purchase values
Loan issuance procedure	One-time	One-time	One-time
Loan issuance method	non-cash: via transfer to the bank account
Loan and prepayment cash withdrawal fee (sum total) by the seller	Not established
Application review fee in case of a change of co-borrowers	AMD 15,000
Overdue loan interest rate	24% per annum calculated on overdue part of loan
REQUIREMENTS FOR THE BORROWER
Borrower’s status	An individual aged 21 and over holding residency, and maintaining his/her main source of income in the Republic of Armenia	An individual aged 21 and over holding residency in Armenia*	An individual aged 21 and over holding residency in the Republic of Armenia*
Requirements applying to the Co-Borrower***	The borrower’s spouse holding citizenship of Armenia (if married), as well as an individual citizen of Armenia aged 18 and over, who maintains his/her main source of income in the Republic of Armenia may be a co-borrower.	The borrower’s spouse (if married), as well as any other person(s) aged 18 and over may be a Co-Borrower	The borrower’s spouse (if married), as well as any other person(s) aged 18 and over may be a Co-Borrower.
Borrower’s/co-borrower’s age	At least one shall be on average no more than 65 years of age (up to 66) on the final date of loan redemption.
Other requirenents for the borrower/co-borrower	Available mobile phone number and email address
TERMS AND CONDITIONS APPLYING TO THE SUBJECT OF PLEDGE
Collateral	1. For real estate³ under construction: right to purchase the real estate from the building under construction, or 2. In case of purchasing completed property, the property being purchased 3. In case of purchasing a parking lot simultaneously with an apartment, also the parking lot, and 4. Prepayment insurance whenever the prepayment amounts to only 29% of the Real Estate (for loans issued with the NMC RFO CJSC resource)
PENALTIES, FINES
Penalty for an overdue interest	48% per annum
Penalty for early loan redemption	Not established
DECISION-MAKING TIMEFRAMES, FACTORS
Decision-making timeframe	4-7 days
Decision notice timeframe	1 day
Timeframe of issue	1 business day: after notarial authentication of the pledge contract and cadastral registration of the pledge
Positive decision factors	compliance with the lending terms and due submission of the required documentation
Loan rejection factors	Borrower's/co-borrower's negative credit history, incompletely submitted documentation, evaluation of the customer's creditworthiness as unsatisfactory
* Loans secured with the pledge of a parking lot are issued with the Own Resource. In the event of a failure to satisfy the terms set by the National Mortgage Company RCO CJSC, the loan application shall be considered within the terms established with the Own Resource. The Bank is entitled to revise the interest rate in the amount of the change in the refinancing interest rate set by the National Mortgage Company RCO CJSC. In the event of the non-financing or termination of financing by the Apartment for Youth RFO CJSC, the interest rate prescribed by the contract shall change to a floating interest rate, and the new interest rate shall be set in the amount of +5.5% of the Settlement Rate (SR), with the SR equaling the Bank’s SR value effective as of the moment of the change in the interest rate (except in the cases prescribed by the Bank’s internal legal acts). * For loans issued with the Own Resource, the Loan may be approved, acknowledging as a borrower the spouse who has submitted a co-borrower’s application (provided no income data are registered in the social services technology and awareness center Nork).
¹ *The settlement rate of loans issued at a floating rate shall equal the SR effective at the Bank upon the loan approval. The settlement rate shall be published on the Bank’s website (www.ardshinbank.am*) and reviewed by the Bank annually on February 1 and August 1. The interest rates with respect to the acting contracts shall be reviewed a month after the change in SR (unless a longer date is indicated in the notice). The interest rates shall change (increase or decrease) in the amount of the change in SR. The interest rate cannot increase or decrease by more than 2.5 percentage points throughout the effective period of the loan contract as compareded to the interest rate at the time of loan issuance.**
² The Pledge procession fee shall be charged before loan issuance. The state registrations with respect to property unit(s) shall be made for a standard time period (not subject to an expedited procedure).
³ After handover for final exploitation the real property under development and submission to the Bank the certificates on the buyer's ownership right and the bank's right to pledge (100% completion), the real property being purchased shall be a subejct of pledge (collateral). After handover for final exploitation the real property under development (100% completion), the customer shall, within 30 days, submit to the Bank the certificates of the buyer's ownership right and the bank's right to pledge.
The Settlement Rate definition table can be viewed here.

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Information about Score and Credit History

What is credit history?

Under the law of the Republic of Armenia “On Circulation of Credit Information and Activities of Credit Bureaus”, credit information is any information about the liabilities undertaken by the subject of information, which reveals the debts, payments, payment habits or any other information about the liabilities or the performance thereof (that are being taken into consideration by financial organizations upon the issuance of credits, as well as by manufacturing, selling and service providing organizations while making a decision on the realization of goods/services based on the principle of instalment payments).

Importance of credit history

A negative credit history recorded in the past may serve as grounds for the tightening of the terms of credit or the non-issuance thereof.

A credit report is a written or electronic document which contains credit information on the performance of the financial liability in relation to the subject of the credit information (natural person or a legal entity) and the entrepreneurial organizations taken over by the latter.

The report shall comprise data obtained as of the moment of the inquiry from organizations affiliated with ACRA and shall reflect credit data of the 5 years preceeding such an inquiry.

ACRA is a credit bureau collaborating with all the banks and credit organizations in the Republic of Armenia.

Types of the score being applied

The evaluation of credit worthiness in ARDSHINBANK CJSC involves the ACRA credit history, the FICO score mark and the Bank's internal screening mechanism.

What is a credit score mark?

A FICO score is a screening system processed jointly by the closed joint stock company (CJSC) ACRA Credit Reporting and Fair Isaac Services which, conducting a statistical study of the client's credit history, gives the digital mark of the credit worthiness of the client’s credit risk as a pivotal instrument for the dimensioning of the consumer crediting risk.

The corresponding information is available also at abcfinance.am and acra.am.

Main factors influencing the score

According to FICO score calculation model, the determiners influencing the score include:

1. Payment (redemption) history;

2. Credit burden;

3. Length of credit history;

4. Types of used loans;

5. New credit application.

The Bank's internal screening mechanism is influenced by

1. Information about bank and deposit accunts, transactions made therewith and information about transfers;

2. Information about credit history;

3. Information about income and employment history;

4. Information about family status and education;

5. Information about the ownership of immovable and movable property;

6. Information about the servicing of other liabilities;

7. Any other information characterizing the client.

Credit inquiry influence on the score mark

The number of credit inquiries may have a negative impact on the concise credit mark. If the inquiry is conducted as part of a monitoring, it does not normally have a negative impact.

How to avoid a deterioration of a credit history and a score mark?

1. To discharge the credit liabilities in a due manner without delays in accordance with the established schedule;

2. To avoid being a co-borrower and/or guarantor, etc. with respect to the liabilities of borrowers with a suspicous or negative credit history;

3. Upon making redemptions of credit liabilities through a payment terminal, to take into consideration the fact that payments made after 4:45pm, i.e. – the Bank's operational hour, are rescheduled to the next business/operational day and the payment is deemed made on the next day.

How to improve credit history and the score mark?

1. To redeem the overdue liabilities if any;

2. To discharge the credit liabilities in a due manner without delays, and to rule out even daily delays thereof;

4. To avoid being guarantors for non-trustworthy persons in the future.

Who to turn to in case of errors in the credit history?

Whenever the borrower’s credit history contains errors or incomplete data, the borrower shall:

1. pursuant to the clauses set forth in Article 20 of the law of the Republic of Armenia “On Credit Information or Activities of Credit Bureaus”, inform the credit bureau thereof or simply turn to the subject providing such information (the source of credit information). The notification may be arranged by way of submitting a corresponding written application to the credit bureau, or electronically, i.e. – in an online regime from the personal office My ACRA. The process of the acceptance/receipt and consideration of clients’ complaints (as submitted by ACRA), and the response thereto and the succession of actions shall be determined subject to the "Dispute Resolution Procedure" of ACRA Credit Reporting. Corresponding information is available also at abcfinance.am and acra.am

2. Turn to the Bank

• by sending a letter to the Bank’s official email address (office@ardshinbank.am)

• by contacting the Bank’s 24/7 call center (tel. 012222222);

• by submitting a written application/complaint/request at any branch of the Bank.

Procedure for the definition, calculation, and modification of the calculation rate