Simple Guarantee

A guarantee is a means of guaranteeing the fulfillment of obligations, which restrains the risks of the execution of your transactions. In this case, the Bank acts as a guarantor of your obligations and creates an opportunity to be more competitive in the market.

Guarantee type:

Tender Guarantee (Participation in the Tender)
Advance Payment Guarantee
Post Completion/Quality Assurance
Performance Guarantee
Other

Annexes

Annex 5

Maximum “financing/pledge liquidation value” ratio based on the client’s credit score (in case of financing solely based on the credit history and the collateral)
Maximum financing/pledge ratio	Real estate		Land plot	Vehicle
	Republic of Armenia (in Yerevan)	Republic of Armenia (except for Yerevan)
	85%	80%	70%	50%
Maximum financing amount (per currency and collateral location)	AMD 100.000.000 or a foreign currency equivalent		Republic of Armenia (in Yerevan)
	AMD 70.000.000 or a foreign currency equivalent		Republic of Armenia (except for Yerevan)
The Bank’s Credit Committee may establish other requirements for “financing/collateral” ratio, but no more than 100%
Application decisioning
Factors for approval or rejection	Approval factors: 1. Compliance of the borrower/borrower's spouse/pledgor with the requirements; 2. Compliance of the pledged property with the requirements set by the Bank; 3. Compliance of the borrower's activities and indicators with the requirements.
Decision validity	30 business days
Financing issuance term	1 business day after notarization of the pledge contract and cadastral registration of the collateral

Annex 6

Requirements to the Borrower
Borrower's status	A legal entity or a sole entrepreneur registered in the Republic of Armenia and engaging in an entrepreneurial, including agricultural activity, as well as individuals engaging in an entrepreneurial activity in the event of financing under the Agribusiness sub-clause or from their own resources for agricultural purposes.
Requirements under sub-clause “Women in Business”	1. At least 50% of the enterprise is owned by women, or 2. 60% of the pivotal enterprise leaders are women, or 3. Women account for 50% of the registered enterprise staff
Borrower's activity period	At least 3 months
Borrower's age	For individuals or SE, the borrower’s age before the loan maturity shall not be above 70 (until 71 inclusive).
Past year profit	above 0
Restriction of the sphere of activity (listed companies)	http://www.ifc.org/wps/wcm/connect/topics_ext_content/ifc_external_corporate_site/sustainability-at-ifc/company-resources/ifcexclusionlist
Requirements to the credit history
Pledgor	Absence of outstanding overdue loans and/or guarantees

Annex 8

Collateral	Maximum financing/pledge ratio
Cash funds in the accounts serviced with the Bank under bank account or deposit agreements (under restriction)	Financing and collateral: of the same currency	100%
	Financing: AMD Collateral: foreign currency	94%
	Financing: foreign currency Collateral: AMD	80%
Requirements to the pledgor	Any individual of full age, SE and legal entity

Full terms

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

Important to know

◾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.

Information about Score and Credit History

FAQ

Can I apply for a loan if I have existing loans in other financial institutions?

Can I apply for a loan online if I am a client of another bank?