Consumer Loan

ATTENTION: The interest is accrued on the declining balance of the principal using annual nominal interest rate. Annual Percentage Rate is the amount you will pay in interest over a year, plus all other charges and fees applied to the loan. The order of calculating annual factual interest rate you can find HERE.

WARNING: The borrower and the guarantees are equally responsible for their undertaken obligations in front of ECLOF UCO with all their private property ( house, car, salary or other property) : The property of the borrower and/or of the guarantees can be confiscated by law if the borrower doesn’t make the interest payments and loan repayments on time.

WARNING: If the borrower doesn’t duly make the repayments of principal and interest on time, the appropriate information about the borrower and the guarantees will be registered in  CB of RA and “ARCA” credit bureau.


All payments are made in a non-cash way in ECLOF UCO.

Overdue loan amount and penalties / fines accrued on overdue interest amount is limited to the sum of 30% of the loan balance and interest on the overdue amount.

ATTENTION: Before signing the loan contract an individual sheet is provided according to the regulation N8/05 of Central Bank of Armenia in which you will be presented the individual terms of the loan to be.

The provision of loan contract statement is free of charge. The reference about loan liabilities is provided three business day later according to Your application (The price of reference is 3000 AMD):

In order to perform customer due diligence, as required under the Republic of Armenia Law on Combatting Money Laundering and Terrorism Financing, the Bank may request you to provide additional documents or other information as part of its “Know your customer” procedures or ask additional questions during verbal communication (if required). 

ATTENTION: According to the agreement signed with the US under the Foreign Account Tax Compliance Act (FATCA)) the company may collect additional information to find out whether you are a US taxpayer.

ATTENTION: "YOUR FINANCIAL DIRECTORY" is an electronic system that facilitates searching, comparing and offering the most effective option for you. Link below:

  Consumer Loan 


Customer age,residence and activity Individual / housekeeper and / or hired worker, resident of the community served by the organization.
Loan Purpose

The loan is intended for the improvement of client’s living conditions and other consumer purposes. The borrower should act on his behalf and for his benefit.

Taking a loan on behalf of a third person is prohibited.

Loan Currency AMD (Armenian Dram)
Loan Amount 400.000-1.000.000 
Application Fee Free
Annual Interest Rate 24%
Interest Calculation Procedure Interest is calculated from the principal balance
Loan Disbursement Fee 5%
Monthly Service Fee 0.3%, which is calculated from the principal balance
Loan Term 24-36 months
Grace period Not defined
Loan disbursement method Non-cash
Loan security

At least two guarantors, one of which shoulb be internal.The minimum criteria that external guarantors should correspond to are:

stable salary or business income and/or property (vehicles, real estate) comparable to the loan amount

Tranches The tranches are not applicable.
Early Loan Repayment

The borrower is authorized to make early (total or partial) repayment of the loan without paying any penalties and implement obligations according to the Agreement. Moreover,

✔ In case of loan total early repayment, the borrower pays loan service and other fees, interest and loan amount as of the date of payment

✔In case of loan partial early repayment, the principal amount of the loan will be charged.

but if the payment exceeds the amount of subsequent repayment, then the exceeding part is channeled to the loan repayment (with the exception of cases prescribed by the loan contract).

In cases when the payment amount is not enough to cover total amount of subsequent repayment according to borrwer’s repayment schedule, then the repayment is done in the following order

1) Service and other fees 2) Interest 3) Loan

✔ The borrower is authorized to make repayment on his desire for the coming months according to Borrower’s Repayment Schedule. In that case repayment will be done

in the following order 1) service and other fees for subsequent months, 2) interest calculated as of repayment day, 3) interest for subsequent months on loan balance,

4) loan amount for subsequent months. The borrower is exempted to make repayments according to borrower’s repayment schedule for the already repaid months


In case of failure to meet the obligations in the deadlines set out by the borrower's repayment schedule, the borrower shall pay the Lender a penalty

1) In the amount of 0.13% of the unpaid loan amount for each overdue day 2) In the amount of 0.13% of the unpaid interest amount for each overdue

day In case of breaking the deadlines of paying the loan amount (breach), prescribed by the loan contract, set out by the repayment schedule,

the calculation of the loan annual interest rate prescribed by the contract with respect to the overdue part is stopped and from the day

of the breach till the actual repayment day of the overdue part subject to repayment, an interest starts being accrued in the amount of

24 percent (twenty-four percent) annual interest rate. In case of existence of overdue liabilities on loan and interests from the borrower’s side and

insufficiency of paid amounts, liabilities are paid in the following order: first are repaid expenses executed by the Lender for bringing back the obligations,

then service fees, accrued penalties, interests and loan amount.

Required documents

Mandatory required documents:

✔ Passports (ID cards) and social security card of client

✔ Additional documents may be required by CC decision

Maximum period of decision making on loan application The decision for a loan application is made within maximum 1 working day and the loan is actually provided to the borrower maximum in 1 working day.
Necessary factors for the positive decision of loan granting

✓ Availability of potential client’s place of residence in the service area of ECLOF UCO LLC representation network.

✓ Availability of confirmed monthly income at least for the past 6 months.

✓ Availability of satisfactory credit history: - The absence of classified liabilities (loans, guarantees), except standard ones, at the time of applying for loan.

Loan rejection factors

✔ Insufficient level of creditworthiness,

✔ Bad credit history,

✔ Other risks


The nominal interest rate for this loan may be changed by ECLOF.It has the right to unilaterally change the interest rate of the loan in case the borrower

breaches the obligations set forth in the agreement, by the manner and cases prescribed by the agreement.

Loan Registration Place The loan can be registered at any representative office of ECLOF UCO LLC.
Calculation of Annual Actual Percentage Rate

Annual percentage rate formula illustrationwhere:

A credit sum (initial size of credit provided to consumer by creditor). n number of the repayment directed to credit coverage

N number of the last repayment directed to credit coverage Kn amount of the n repayment directed to credit coverage Dn time

span between the day or credit extension and the day of making the n repayment directed to credit coverage, expressed by number

of days i Annual Percentage Rate (APR), which can be calculated if the other data of the formula are known from loan agreement or any other way

Annual Actual Percentage Rate 36.5-38.6%
Contract Loan Review Terms and Conditions Depending on the loan balance
<500,000 - 7,000 AMD
500.001 - 1,000,000 - 10,000 AMD
1,000,000 and more - 15,000 AMD



In case of any inconsistencies between the published Armenian and English information, the Armenian version prevails. Updated: 06.07.2021 11:23