Secondary mortgage

Total cost of loan (TCL) – debtor’s payments on loan contract, amount and terms of payment which are known by the moment of its conclusion, including payments in favor of the third parties that are identified by contract, if Debtor’s obligation on such payments is under conditions of contract. Total cost of loan is calculated at annual percentage.

1. The following Debtor’s payments are taken into account:

• on main debt and interest rates,
• in favor of the Bank – creditor, if Debtor’s obligation on such payments is under conditions of contract and (or) if provision of credit or loan depends on making such payments;
• in favor of the third parties, if debtor’s obligation on such payments is under conditions of contract, including payments:

• in favor of an insurance company, if the Bank is beneficiary under the insurance contract in case of insurance accident;
• in favor of an insurance company while insuring the subject of a pledge by contract, which provides obligations of a client under contract and is located in the use of a pledgor.
• guarantor (sponsor) for obtaining guarantee (sponsorship) as well as appraiser for evaluating a property transferred for collateral;
• in favor of organizations (mediators) that deliver services to the Bank to attract clients, implement verification of provided documents of clients to get credit or loan, accept payment and transfers from the Bank’s clients to the account of credit or loan repayment.

Calculation of TCL value is made by the Bank by the end of contract taking into account all payments which are under the paragraph.

2. Calculation of TCL does not include:

• Debtor’s payments in favor of the third parties, excluding payments mentioned in paragraph 1 (see above);
• Debtor’s payments which are connected with noncompliance the terms of contract including forfeit and other types of penalty sanctions.
• Payments on credits (loans) which are provided by using the Bank’s credit cards, particularly:

• commissions for implementing operations in a currency that differs from the currency of the account (the currency of provided credit);
• commissions for issuing and serving the Bank card;
• commissions for receiving the sum of credit (loan) by cash with using ATM.

While calculating TCL, it is rounded to one decimal place. If two decimal places are equal to 5 or above, then one decimal place is increased by one.

Example: The indication of TCL is 18,66%. After rounding it is equal to 18,7%.

Information about total cost of each loan is delivered to debtors before issuing loan contracts in a compulsory order.