Overdraft terms and conditions

1. General conditions
   
   1. The Bank makes the decision on provision of overdraft taking into consideration the conformity of the overdraft application to the announced requirements of the given loan type, as well as evaluating such essential factors, as the applicant’s eligibility, creditworthiness, credit history and other factors.
      
      1.1.1 The Bank may require the Customer’s obligations to be secured with guarantee at its discretion, based on risk assessment results.

1.2. Overdraft is provided non-cash.

1.3. Customers can apply for overdraft at any of the Bank branches/main office.

1.4. Taking into account that the Overdraft agreement is signed for an indefinite time, the Bank reserves the right to unilaterally revise the services and benefits offered through it, alter these terms, tariffs as well as interest rates and notify you of any such alterations in advance (by advising you about the amount of the change and respective criteria on the basis of the change) by the means agreed between You and the Bank and within the terms stipulated by the legislation of RA.

A prerequisite of such alteration for the annual nominal interest rate of the credit line provided via Overdraft may be the change of the bank base rate change defined by the Central Bank of RA, the variation of the Armenian currency exchange rate, the investment of new banking technologies, as well as other changes taking place in the financial market, which may have an essential influence on the pricing of the service.

Upon proper receipt of the notification from the Bank, You are bound to follow the altered conditions unless you have applied to the Bank for Overdraft cancellation before the date from which such alteration is to have effect. In case You do not agree with the revised terms and conditions, You have the right of early repayment of all the outstanding amount on your Overdraft without penalties, provided that the Minimum Payment Dues are paid in accordance with the Statements until the cancellation of the Overdraft agreement.   

2. Warning

    2.1. If the Customer does not pay the interest and overdraft principal amounts in time, this information will be provided to the Credit Registry of the Central Bank of Armenia and ACRA Credit Reporting CJSC.

3. Default interest rate and penalties

3.1. No early repayment fee is applicable.

3.2. The Customer has the right to unilaterally terminate the Overdraft Agreement within 7 (seven) working days from the date of signing, in which the Customer is obliged to pay the amount of the Overdraft Limit used and the Interest Amount accrued for these days, which is calculated with the respective annual nominal interest rate.

4. The deadlines for decision-making of overdraft application and overdraft provision

4.1. The final decision-making of overdraft application and, accordingly, informing the Customer is made within 1 business day, after the submission of all necessary documentation, as requested by the bank.

4.2. The approved overdraft is provided to the Customer within 2 working days, after signing the overdraft agreement and paying all the available fees stipulated in the overdraft agreement.

5. Overdraft approval and declination criteria

    5.1. Overdraft approval criteria

5.1.1. Documented and stable income, which corresponds to the minimum set requirements for overdraft

5.1.2. Good credit history, with number of overdue days for all loans during the recent 12 months not exceeding the maximum threshold set by the Bank

5.1.3. Full document set required for the overdraft process

    5.2. Overdraft declination criteria

5.2.1. Insufficient or undocumented income for repayment of the overdraft

5.2.2. Not trustworthy information provision by the customer

5.2.3. Bad credit history, with number of overdue days for all loans during the recent 12 months exceeding the maximum threshold set by the Bank

5.2.4. Customer age does not meet the age related criteria for the given loan type.

Last updated on: 09.05.22, 06:03