- ServicesRetail bankingDEPOSITSDeposit-Backed Lines of Credit
Deposit-Backed Lines of CreditWe offer our depositors lines of credit (overdrafts) that will be secured by their deposits. To obtain a deposit-secured overdraft, you can apply to the bank’s Head Office or any branch (except Erebuni branch).
TERMS AND CONDITIONS OF ADVANCING LINES OF CREDIT
Currency In the currency of deposit Maximum amount
At 90% of the time deposit Repayment period Up to 24 months but no longer than the term of the deposit agreement Interest rate Interest rate of time deposit + 2%, per annum Type
Revolving line of credit (overdraft) placed according to a certain schedule, under which:
- No grace period will be set and starting from the date of advancing the funds, interest will be accrued on the used portion of the line of credit. You will be obliged to pay 10% of the portion used during the previous month, but no less than AMD 5,000, USD and Eur 10 prior to the deadline indicated in the account statement.
- A month constitutes a period starting from 1st day till the 1st day of the next month. You have 15 days to make a payment, the deadline is 16th day of each month.
- Overdraft application according to the model form;
- Passport or identification card;
- A copy of time deposit agreement.
Timeline of advancing funds Within 1 (One) banking day upon submission of the documents required for applying for the overdraft. Commission fees
- Free payment cards which will be reloaded with overdraft funds based on your written application. Payment cards will be provided to you at the moment of placing a deposit, notably, no fee will be charged for annual service.
- When performing transactions using payment cards (cashing funds, card-to-card transfer, etc.) a relevant fee will be charged according to our tariff rates.
Other information In case of a positive decision on the loan application, prior to conclusion of a loan agreement, you will be provided with an INDIVIDUAL Sheet of Major Terms of Lines of Credit (Overdrafts) which complies with the requirements of the RA Central Bank Regulation 8/05 On the procedure, terms, manner of and minimum requirements to communication between the bank and a depositor, creditor and consumer.