Terms and Conditions

ATTENTION: LOAN INTEREST RATES ARE CALCULATED BASED ON THE NOMINAL INTEREST RATE. THE ACTUAL ANNUAL INTEREST RATE SHOWS HOW MUCH THE LOAN WILL COST YOU WITH THE INTEREST AND ALL MANDATORY PAYMENTS FOR PROVIDING AND SERVICING THE LOAN IN THE DEFINED PERIODS AND SIZES IN CASE OF DOING. THE PROCEDURE FOR CALCULATING THE ANNUAL ACTUAL INTEREST RATE IS PRESENTED BELOW

The annual percentage rate calculation is based on the following formula:
... N .. Kn
A=∑ --------------
... n=1 .. (1+i) Dn/365 where

A – the initial loan amount
n – the sequence number of the installment for loan repayment
N – the sequence number of the last installment for loan repayment
Kn – the amount of the nth installment for loan repayment
Dn – the number of days between the loan disbursement date and the date of the nth installment for loan repayment
i – the annual effective interest rate


CALCULATION EXAMPLE

Loan amount/-800,000 Armenian Dram
Loan maturity/-12 month
Loan annual interest rate/-19,9%
Loan service fee/- 0%
Loan disbursement fee/-0%
Loan repayment/- Bullet
Loan disbursement date/-05 October 2020.
Loan first repayment date/-05 November 2020.
Loan effective interest rate/-21,8%

EARLY REPAYMENT

• The borrower can repay the whole loan or part of the loan earlier than stipulated by the payment schedule without incurring penalties. Upon early repayment, together with the reduction of the principal, the borrower’s total credit expenses (interest, other fees) are reduced proportionally, except for the cases when the payer submits a different written order. Penalties and other fees incurred as a result of failure to properly fulfill obligations stipulated by the RA legislation and the loan contract, as well as the fees defined by Article 15 of the RA Law on Consumer Credit are not reduced. Upon full early repayment of the loan, the borrower pays the service fees (if applicable) and other charges, interest, and principal amounts calculated as of the payment date.
• Payments for future months can be made in advance by submitting a written order. Repayments for each upcoming month are made in the following order: 1) service fees and other charges (if applicable), 2) interest.

WARNINGS

"WARNING: YOUR PROPERTY (Pawned yellow and white gold jewelry, including diamond stones on them, regular and standardized bars, gold coins, gold scrap, etc.) MAY BE LEGALLY SEIZED IF YOU FAIL TO MAKE YOUR INTEREST AND LOAN PAYMENTS ON TIME"

• If you do not pay all the due interest or loan amount for more than 90 days then your pledge will be confiscated, sold to cover your loan and interest obligation.
• If the borrower fails to repay the principal on time, application of the contractual interest rate towards the overdue amount is continuing until the loan repayment date. If the amount paid is not sufficient to cover all overdue obligations, the creditor’s expenses incurred in efforts to receive the due payments from the borrower are paid first, followed by the service fees (if applicable), interest, and principal.
• In case of failing to fulfill your loan obligations in due time and/or due amount, this information is sent to the credit bureau where your credit history is formed. Bad credit history can prevent you from receiving a new loan in the future.
• In case of not fulfilling your loan obligations on time, your property may be confiscated in accordance with the law.
• If the collateral is insufficient to cover loan obligations when repaying them at the expense of the collateral, payments are made at the expense of your other property.

ATTENTION: IN CASE OF NON-FULFILLMENT OR INCOMPLETE FULFILLMENT OF YOUR OBLIGATION, AFTER 3 DAYS, THE LENDER SENDS THAT DATA TO THE CREDIT BUREAU, WHERE YOUR CREDIT HISTORY IS FORMED. YOU HAVE THE RIGHT TO GET YOUR CREDIT REPORT FROM THE CREDIT BUREAU ONCE A YEAR FOR FREE. ATTENTION: A BAD CREDIT HISTORY CAN HINDER YOU WHEN GETTING A LOAN IN THE FUTURE.

THE BORROWER CAN EARLY REDEEM THE LOAN AT ANY TIME WITHOUT ADDITIONAL FEE OR PENALTIES.

Note

• DIGISAFE CU CJSC is controlled by the Central Bank of Armenia.
• To search and compare the services offered by RA financial organizations, you can visit the "Your Financial Directory" electronic platform (https://www.fininfo.am/vosku-vark)
ATTENTION: "YOUR FINANCIAL DIRECTORY" IS AN ELECTRONIC SYSTEM THAT FACILITATES THE SEARCH, COMPARISON OF SERVICES OFFERED TO INDIVIDUALS AND THE SELECTION OF THE MOST EFFECTIVE OPTION FOR YOU

Other

• At the customer's request, the credit statement of the customer's current loan is provided to the customer in the territory of the organization, by post or e-mail. PROVISION OF A CREDIT TERM IS FREE OF CHARGE DURING THE PERIOD OF THE CLIENT'S CREDIT AGREEMENT.

• The client can communicate with the organization in the way he prefers, namely through the 24/7 call center and messages, through postal communication or electronically. THE CLIENT HAS THE RIGHT TO COMMUNICATE WITH THE ORGANIZATION IN THEIR PREFFERED WAY. RECEIVING INFORMATION ELECTRONICLY IS THE MOST CONVENIENT. IT IS AVAILABLE 24/7, IS FREE OF THE RISK OF LOSS OF PAPER DATA AND ENSURES PRIVACY.

The essence of credit history and its importance

• Credit history is the totality of information on the fulfillment of the client's financial obligations, which is collected, accumulated and regularly updated, both by individual lenders who have granted a loan, and by the Credit Bureau (ACRA). That is, the credit history shows how the client has fulfilled and continues to fulfill all his financial obligations. It contains information about the client's loans, repayments, guarantees given to other people, overdue loans.
• Generally, it is used by financial organizations in the process of making a decision on granting loans. Having a positive credit history plays an important role in making a loan decision. A previously demonstrated bad credit history may be the basis for stricter terms of new loans or not granting them at all.
• Credit history includes data for the 5 years prior to the time of the request.


How to change an incorrect or incomplete credit report

• In case of finding errors and defects in the credit history, for the purpose of clarification and correction, customers can inform the credit bureau about it or directly contact the financial organizations providing the information.
You can take your credit report online once a year from the ACRA credit bureau website and check your credit behavior.

For details please use below links:

The essence of credit score evaluation

• A credit score is an indicator that is formed based on credit history and shows how responsible a given person is as a borrower. Based on the score, the possible credit limit, term and other conditions for a specific type of loan can be determined. The credit score provides a numerical assessment of the borrower's credit risk (creditworthiness) as a key tool for measuring the level of risk in consumer lending. The borrower's score ranges from 300 to 850. Among the factors influencing the score evaluations are: the customer's credit history, the number of existing loans, the amount, the frequency of submitting a new loan application, making regular loan payments without delays, etc.


Importance of credit history and score

• Credit history and score evaluation are important because after applying for a loan, often the financial institution, before making a decision to extend the loan, examines the applicant's credit history and evaluates how responsible the latter is as a borrower.


How to improve your credit history and SCORE

• To improve the credit history and SCORE, it is necessary to exclude delays in loan repayments by making them in accordance with the established schedule, repay or reduce loan obligations, reduce the number of loans by easing the credit burden, reduce the guarantees given by reducing their number and amount, and, if available, provide full repayment of overdue obligations under this section. A customer's already recorded bad credit history can be transformed during each subsequent loan as a result of changes in the customer's behavior and diligence. Therefore, to avoid deterioration of credit history and SCORE and to ensure improvement, one should exclude even one-day delays in fulfilling obligations on current loans, fully pay off previously incurred overdue loan payments, avoid becoming a guarantor for unreliable persons in the future, lighten the credit burden, etc.