Consumer loans

Consumer Loans Information regarding the loan decision-making process.

A customer's loan application is approved if:

1. The customer has submitted reliable and complete documents;
2. The customer has a positive or neutral credit history;
3. The customer has a stable source of income;
4. The collateral offered by the customer meets the criteria acceptable to the organization.

A customer's loan application is rejected if:

1. The customer failed to submit the documents required to obtain a loan;
2. A request to the Central Bank of Armenia Credit Registry and/or ACRA Credit Bureau reveals that the customer (including co-borrowers, guarantors, and cohabitating family members) has a negative credit history. Credit history is considered negative if the customer has had or currently has credit obligations that were serviced with delays or were classified in accordance with the regulation on "Classification of loans and receivables and formation of provisions for possible losses of banks operating in the territory of the RA," approved by the Central Bank of Armenia and the Ministry of Finance and Economy of the RA;
3. The creditworthiness assessment reveals that the customer is not creditworthy;
4. The valuation of the property offered as collateral reveals that it is not acceptable to the organization;
5. The customer provided unreliable information;
6. The loan application was approved, but the customer failed to appear or submit the necessary documents within 15 days following the approval;
7. Information about the customer has become known during the lending process that casts doubt on their solvency.

The Essence and Importance of Credit History Credit history shows how you have fulfilled and continue to fulfill all your financial obligations. It contains information about your loans (number, amount, type, and terms), repayment performance, guarantees provided to others, overdue loans and penalties, unpaid utility bills, and your average salary over the last six months.

Credit history does not contain personal information such as ethnic background, political views, social status, hobbies, religious beliefs, or health data. It includes data only for the last 5 years from the moment of the request.

The Essence and Importance of Credit SCORE Banks and credit organizations consider your credit SCORE to determine how risky a borrower you are. A high SCORE indicates low risk and can help you get a loan and influence the interest rate. Currently, 3 types of SCORES are used in Armenia (ACRA, FICO, and proprietary systems). "Gladzor UCO" CJSC uses its own scoring system based on specific factors.

For more details: www.abcfinance.am www.acra.am

The impact of credit inquiries on the credit score Depending on the type of credit inquiry, it may affect the types of scores used by the ACRA Credit Bureau (ACRA Score and FICO Score), as well as the proprietary credit scores used by financial institutions.

Details regarding the purposes of inquiries and their impact on the credit score are presented in the table below:

Every time a credit inquiry is made regarding a consumer, if that inquiry will affect the credit score (FICO, ACRA, or internal score), Gladzor UCO CJSC notifies the consumer about it within a maximum of 2 business days after the inquiry, specifying the date of the inquiry, the purpose (e.g., granting a new loan, increasing the loan amount), and the type (credit history or score), as well as information or a link to the relevant page of the website(s) containing information about credit history/credit score.

Gladzor UCO CJSC provides the above information to the consumer free of charge via electronic message. If it is impossible to send this information via electronic message when making inquiries affecting the consumer's credit score (when the consumer does not have an email address), Gladzor UCO CJSC informs the consumer by other available means (e.g., via SMS, in person, or by mail).

For more details: www.acra.am www.abcfinance.am

Improvement of Credit History and SCORE How to improve your credit history If you have already formed a "bad" credit history, it is not enough to just "sit and wait" for 5 years for your credit history to be "cleared." Throughout that entire period, it is necessary to:

• Exclude even one-day delays in fulfilling obligations on current loans.
• Fully repay previously overdue loan payments.
• Avoid becoming a guarantor for unreliable persons in the future.

How to increase your SCORE To increase your score, you must first correct the main reasons for its decline. Specifically, it is necessary to repay current overdue obligations at the first opportunity. Also:

• Ease the credit burden by repaying existing loans partially or fully.
• Make payments according to the set schedule, excluding delays and demonstrating disciplined behavior.
• Reduce given guarantees by decreasing their number and amount, as well as ensuring full repayment of overdue obligations in this regard, if any.

For more details: www.abcfinance.am www.acra.am

Actions to correct incorrect or incomplete credit history If there is incorrect or incomplete data in the client's credit history, then for the purpose of clarification and correction, the client may, in accordance with the provisions of Article 20 of the RA Law "On Circulation of Credit Information and Activities of Credit Bureaus," notify the credit bureau (ACRA Credit Reporting CJSC) or directly contact the financial organizations providing the information. Notification can be made by submitting a relevant written application to the credit bureau or electronically online from the "My ACRA" personal office. The process of accepting and reviewing client complaints regarding credit reports provided by the credit bureau is defined by the "Dispute Resolution Procedure" of ACRA Credit Reporting CJSC.

For more details: www.acra.am www.abcfinance.am

Interest calculation procedure The interest rate is applied to the actual balance of the loan, based on a 365-day year. ATTENTION: LOAN INTEREST IS CALCULATED BASED ON THE NOMINAL INTEREST RATE. THE ANNUAL ACTUAL INTEREST RATE SHOWS HOW MUCH THE LOAN WILL COST YOU IF INTEREST AND OTHER PAYMENTS ARE MADE IN THE DEFINED TERMS AND AMOUNTS. YOU CAN FIND THE CALCULATION PROCEDURE FOR THE ANNUAL ACTUAL INTEREST RATE BELOW.

Loan repayment is made: By cash:

• Directly at the credit organization's cash desk (address: Yerevan, 1b Charents St., #42).

By non-cash:

1. Ardshinbank CJSC accounts – AMD 2474602514470000, USD 2474602514470010,
2. IDBank CJSC accounts – AMD 11817068806300, USD 11817068806301,
3. Artsakhbank CJSC accounts – AMD 22325000913900, USD 22325000913902,
4. AMIO Bank CJSC accounts – AMD 11500583623036, USD 11500993230832,
5. Via Telcell terminals and Telcell Wallet e-wallet: by selecting "Gladzor UCO" CJSC from the list of credit organizations and entering the loan code indicated on the first page of your loan agreement.

Terms of statement provision On the 16th of each month, Gladzor UCO CJSC provides consumers free of charge, via electronic communication (e-mail), with written information regarding the consumer's obligations arising from the credit agreement, the grounds for their emergence, and repayments, in accordance with the conditions of Regulation 8/05.

Gladzor UCO CJSC is supervised by the Central Bank of Armenia.

Attention Gladzor UCO CJSC is not responsible for the accuracy and reliability of the content of other websites linked on its site, nor for the advertisements placed on them. The financial organization is not liable for any potential consequences resulting from the use of information posted on those websites.