OTHER CONTRACTUAL TERMS

Prepayment rule

In case of indexed interest rate In case of prepayment, the prepayment fee is:

• if there are less than 6 months before the end of the agreement, not more than 0.5% of the amount directed to the remaining principal amount of the loan at the moment of payment;
• If there are up to 6 months left before the end of the contract, the client will not be charged a prepayment fee. 

In case of fixed interest rate In case of prepayment, the prepayment fee is:

• if there are 6 to 12 months left before the end of the contract, not more than 0.5% of the amount directed to the remaining principal amount of the loan at the moment of payment;
• If there are 12 to 24 months left before the end of the contract, not more than 1% of the amount directed to the remaining principal amount of the loan at the time of payment; If there is more than 24 months left before the end of the contract, at the moment of payment no more than 2% of the amount directed to the remaining principal amount of the loan. If there are up to 6 months left before the end of the contract, the client will not be charged a prepayment fee. 

In case of a mixed (when the credit agreement establishes both a fixed and an indexed interest rate) type of interest rate during the fixed interest rate accrual period:

• In case of prepayment, the prepayment fee is: if there are 6 to 12 months left before the end of the contract, not more than 0.5% of the amount directed to the remaining principal amount of the loan at the moment of payment;
• If there are 12 to 24 months left before the end of the contract, not more than 1% of the amount directed to the remaining principal amount of the loan at the time of payment;
• If there is more than 24 months left before the end of the contract, at the moment of payment no more than 2% of the amount directed to the remaining principal amount of the loan. If there are up to 6 months left before the end of the contract, the client will not be charged a prepayment fee. 
• During the indexed interest rate accrual period: In case of prepayment, the prepayment fee is: if there are less than 6 months before the end of the agreement, not more than 0.5% of the amount directed to the remaining principal amount of the loan at the moment of payment; If there are up to 6 months left before the end of the contract, the client will not be charged a prepayment fee. For both periods the borrower, together with the prepayment fee, will be required to pay interest and other charges accrued during the grace period (if any).
• Penalty for overdue: Fixed one-time USD 6.0  and payable overdue amount of 0.27% for each overdue day, but not more than 0.27% of the remaining principal amount, for each day. However, the total amount of costs incurred in the period from the beginning of the overdue to its complete elimination shall not exceed 1.5 times the amount of the current residual principal amount

 
The borrower is obliged:

• For Delivery of information in a timely and established manner in accordance with the terms of the credit agreement and control of the bank;
• To fully comply with the purpose set by the credit agreement;
• Not to undertake liabilities from another commercial bank and / or financial institution without the prior written consent of the bank;
• To fulfill properly other terms/additional terms of the credit agreement.
• in case of non-fulfillment and/or improper fulfillment of any of the above obligations/conditions, the Bank is entitled to immediately unilaterally increase the annual interest rate of this bank loan by 4 (four)%, but not more than 0.27 (zero point twenty seven)% for each remaining principal amount and Within 5 (five) calendar days after such change, send a notification to the Borrower in writing / by email / Internet Banking / Short Text Message.

A loan taken in foreign currency, combined with a loan featuring an indexed interest rate, exposes the consumer to significant risk. Changes in both the exchange rate and the index may significantly increase contributions expressed in GEL.

In case of non-fulfillment of the obligation, the claim arising from credit agreement related to the credit will be considered satisfied only by the implementation of the appropriate measures (including the sale and/or taking into possession of the property) provided for by the legislation of Georgia in relation to the present credit security means(s) (this condition applies in the case of credits issued to natural persons without solvency analysis) 

in case of significant changes in the terms of the specific financial product, the client will be informed at least 2 (two) months before the change, while in case of price increase of other financial product - less than one month in advance by written / e-mail / Internet Banking / short text message to the relevant address of client. Changes to the terms of the agreement in favor of the client do not require the client’s consent and/or informing the client.

The client is entitled to submit a claim to the bank in oral, written and / or electronic forms. The claim can be submitted at any branch of the bank, service center or head office. 

Get acquainted with useful information for consumers in Georgia on the National Bank website - http://nbg.gov.ge/cp and on the hotline - 032 2 406 406