Jem Ojakh

Factors for a positive decision to grant a loan:

• stable source of income,
• positive or neutral credit history,
• reliable and complete documents,
• availability of sufficient collateral.

Factors for loan rejection:

• insufficient income to repay the loan,
• provision of unreliable data by the client,
• negative credit history,
• risk area of the client's source of income,
• lack of sufficient collateral security.

Place of formulation:

• Loans are formalized in the branches, representative offices, as well as in the head office of CARD AgroCredit UCO CJSC.

Loan disbursement method:

• Bullet, non-cash

Individuals

• identity documents of the applicant and related persons
• in case of private entrepreneurs, also an electronic extract from the State Register of the Ministry of Internal Affairs of the Republic of Armenia
• ownership certificates or lease agreements for properties related to agricultural and other economic activities (land, building, warehouse, agricultural machinery, vehicles, equipment)
• references from the village administration regarding properties and number of livestock
• other documents as required

Legal entities

• charter,
• Electronic extract from the State Register of the Ministry of Internal Affairs of the Republic of Armenia
• information on shareholder/s
• identification documents of the director/manager
• decision of the competent authority on financing
• information on tax obligations
• tax reports
• ownership certificates or lease agreements for properties participating in economic activity (land, building, warehouse, agricultural land, vehicle, equipment)
• ownership certificates or lease agreements for properties related to economic activity (land, building, warehouse, agricultural machinery, vehicle, equipment)
• other documents as required

Documents required for pledge

• property ownership certificate
• reference to property restrictions
• identity documents of the property owner / in the case of a legal entity: Electronic extract from the State Register of the Ministry of Internal Affairs of the RA and the decision of the competent authority regarding the pledge
• grounds for property acquisition

FOR THE BORROWER

• Attention: IN CASE OF NON-FULFILLMENT OR INCOMPLETE FULFILLMENT OF YOUR OBLIGATION, AFTER 3 WORKING DAYS, THE LENDER TRANSMITS THAT DATA TO THE CREDIT BUREAU, WHERE YOUR CREDIT HISTORY IS FORMED. YOU HAVE THE RIGHT TO GET YOUR CREDIT HISTORY FROM THE CREDIT BUREAU ONCE A YEAR FOR FREE.

• Attention: YOU HAVE THE RIGHT TO COMMUNICATE WITH THE FINANCIAL ORGANIZATION IN THE MANNER OF YOUR PREFERENCE, WHETHER BY MAIL OR EMAIL. RECEIVING INFORMATION BY EMAIL IS MOST CONVENIENT. IT IS AVAILABLE 24/7, IS FREE OF RISKS OF LOSS OF PAPER DATA AND ENSURES PRIVACY.

• Attention: IN CASE OF NON-FULFILLMENT OR IMPROPER FULFILLMENT OF THE OBLIGATIONS ACCEPTED BY YOU, "CARD AGROCREDIT" UCO CJSC WILL UNDERTAKE PROPERTY SEIZURE AND REALIZATION AS DEFINED BY RA LEGISLATION. IF THE MONEY OBTAINED FROM THE REALIZATION OF THE PLEDGED PROPERTY DOES NOT SATISFY THE COMPANY'S REQUIREMENTS, THEN THE LATTER HAS THE RIGHT TO RECEIVE COMPENSATION FROM YOUR OTHER PROPERTY AND/OR OTHER MEANS.

• Attention:  BASED ON THE PRINCIPLE OF "KNOW YOUR CUSTOMER" AND FOR THE PURPOSE OF DUE CUSTOMER RESEARCH DEFINED BY RA LAW "ON THE FIGHT AGAINST MONEY LAUNDERING AND THE FINANCING OF TERRORISM" THE CLIENT MAY BE REQUIRED TO SUBMIT ADDITIONAL DOCUMENTS OR OTHER INFORMATION.

• Attention: WHEN YOU APPLY FOR A LOAN UP TO 5 MILLION AMD, THE LENDER WILL PROVIDE YOU WITH AN INDIVIDUAL LEAFLET OF THE CONSUMER LOAN OFFERED TO YOU.

• Attention:  THE BORROWER SHOULD ACT ON HIS NAME AND FOR HIS OWN BENEFIT, IT IS FORBIDDEN TO TAKE A LOAN FOR A THIRD PERSON.

• Attention:  LOAN INTEREST RATES ARE CALCULATED BASED ON THE NOMINAL INTEREST RATE. THE NOMINAL INTEREST RATE OF THE LOAN SHOWS HOW MUCH IS THE ANNUAL INTEREST OF THE LOAN, CALCULATED WITH THE INTEREST EXPRESSION ON THE LOAN BALANCE. LOAN INTEREST IS CALCULATED DAILY WITH REFERENCE TO THE ACTUAL BALANCE OF THE PRINCIPAL LOAN AMOUNT IN THE LOAN CURRENCY. INTEREST CALCULATION IS BASED ON THE CALENDAR YEAR.

• Attention:  THE LOAN INTEREST RATE CANNOT EXCEED DOUBLE OF THE BANK INTEREST CALCULATION RATE SET BY THE CENTRAL BANK OF RA.

• Attention:  FOR THE PURPOSE OF SEARCHING, COMPARING AND CHOOSING THE MOST EFFECTIVE OPTION OF THE SERVICES OFFERED TO INDIVIDUAL PERSONS, YOU CAN VISIT "YOUR FINANCIAL INFORMATION DIRECTORY" ELECTRONIC PLATFORM AT WWW.FININFO.AM.

FOR GUARANTORS

• Attention:  IF THE BORROWER FAILS TO FULFILL ITS OBLIGATIONS, THE GUARANTOR IS OBLIGED TO PAY INSTEAD OF THE BORROWER, AS WELL AS THE CREDIT HISTORY OF THE GUARANTOR WILL DETERIORATE AND IT IS POSSIBLE THAT THE GUARANTOR WILL BE DEPRIVED OF HIS OWN PROPERTY.

• Attention: YOU WILL BE PROVIDED WITH A SAMPLE OF GUARANTEE AGREEMENT, LOAN AGREEMENT, REPAYMENT SCHEDULE, AS WELL AS AN INDIVIDUAL LEAFLET.

• Attention: COMMUNICATION WILL BE CARRIED OUT IN YOUR PRE-CHOSEN WAY.

• Attention: YOU WILL BE NOTIFIED SEVEN DAYS BEFORE THE TERMS OF THE CONTRACT ARE CHANGED.

• Attention:  IN CASE OF LOAN REPAYMENT DELAY, YOU WILL BE INFORMED ABOUT IT IN ONE DAY AT THE LATEST.

• Attention: YOU HAVE THE RIGHT TO DEMAND INFORMATION ABOUT THE BALANCE OF THE LOAN FROM THE LENDER AT ANY TIME.

• Attention:  YOU CAN DEMAND FROM THE BORROWER TO REFUND THE AMOUNT PAID TO THE LENDER, AS WELL AS OTHER DAMAGES RELATED TO BEARING RESPONSIBILITY FOR THE BORROWER.

Fees for lending services provided by third parties:

Provision of a joint certificate for real estate: up to AMD 10,000

Notarization of pledge agreement: up to 15,000 AMD

State registration of the right of pledge on real estate collateral: up to AMD 26,000

Declaration/consent in notary packages: AMD 8,000

Information about restrictions on the vehicle: AMD 3,000

State registration of the right of pledge on vehicles: AMD 3,000

State registration of the right of pledge on agricultural machinery: AMD 2,000

Dear customer, the annual nominal interest rate is the interest rate announced by the financial institution and based on which the amount of interest to be paid by the borrower is calculated.

The effective annual interest rate shows how much the nominal annual interest rate would be if the latter included all mandatory fees for loan origination and servicing.

Loan interest is calculated on the loan balance, based on the nominal interest rate.

The interest amount of the loan is calculated: Loan amount * interest rate / number of months (or number of days).

For example, in the case of a loan of 1,000,000 AMD with an annual interest rate of 12% and a repayment period of 12 months, the average monthly interest payment will be: 1,000,000*0.12/12=10,000 AMD.

The actual monthly interest amount depends on the repayment schedule of the loan, but cannot exceed the average amount presented above.

The actual annual interest rate shows how much the loan will cost for the client in case of making all mandatory payments for the provision and servicing of the loan within the specified terms and amounts.

The calculation is based on the following formula:

where:

A – initial loan amount

n – serial number of the loan repayment sum

N – serial number of the last payment aimed at repaying the loan

Kn – the amount of the nth payment aimed at repaying the loan

Dn – the period from the date of loan issuance to the nth repayment, in days

i – annual effective interest rate

The Essence of Credit History and Its Importance:

A credit history represents a person's credit behavior, including existing and repaid loans, and guarantees provided by that individual. It encompasses the totality of information regarding the fulfillment of the client's financial obligations, which is collected, accumulated, and regularly updated by both individual lenders and the Credit Bureau (ACRA). In other words, a credit history shows how well the client has met and continues to meet their financial commitments.

It contains information about the client's loans, repayments, guarantees given to other individuals, any overdue loans, as well as penalties and fines imposed for late payments.

How to Change an Incorrect or Incomplete Credit Report:

If a borrower's credit history contains incorrect or incomplete information, the borrower may request clarification and correction in accordance with Article 20 of the RA Law "On Circulation of Credit Information and Activities of Credit Bureaus." The borrower can notify the credit bureau or contact the credit information provider directly (the source of the credit information). This can be done by submitting a written application to the credit bureau or electronically via the online platform, My ACRA. The process for accepting, reviewing, and responding to complaints about credit reports provided by ACRA is outlined in the "Dispute Resolution Procedure" of ACRA Credit Reporting CJSC.

For details:

• www.abcfinance.am
• www.acra.am

The Essence of Credit SCORE:

CARD AgroCredit UCO CJSC conducts credit analysis when considering loan applications, resulting in a SCORE assessment. The score is a comprehensive evaluation based on statistical methods and an analysis of the client's available information. Based on this score, the possible credit limit, loan term, and other loan conditions are determined.

For details:

• www.abcfinance.am
• https://acra.am/

The Type of SCORE Used and the Main Factors Affecting It:

CARD AgroCredit UCO CJSC uses its own scoring system, which is based on a comprehensive review of data derived from financial and economic analyses, as well as other social and environmental risks. In addition, it uses scoring calculators provided by the ACRA credit bureau.

The main factors influencing the customer's SCORE rating include:

• The number and amount of loans received
• The number and amount of guarantees provided
• History of loan repayments
• Types of loans received
• Number of new loan applications submitted
• Number and type of ACRA requests

It is important to note that credit history inquiries can impact the credit SCORE, potentially lowering the score, which in turn can affect the loan decision and result in a negative outcome.

How to Improve Your Credit History and SCORE:

To improve your credit history and SCORE, it is essential to avoid delays in loan repayments by adhering to the established schedule. Paying off or reducing outstanding loan obligations, decreasing the number of loans to ease the credit burden, and reducing the number and amount of guarantees given are also recommended. Additionally, fully repaying any overdue obligations will help improve your credit standing. Even if a client has a bad credit history, it can be improved with responsible behavior in future loan transactions. Therefore, to prevent deterioration of credit history and improve your SCORE, avoid even one-day delays in payments, fully settle any overdue loans, refrain from becoming a guarantor for unreliable individuals, and reduce your credit burden where possible.