Borrow Wisely!!!

BORROW

Don’t know how much you can afford?

Don’t know how much you will have to pay?

If you don’t understand the contract?

Not exercising your right to complain?

Letting debt control you?

FIND OUT WHAT NOT TO DO?

WISELY!

How much can you afford to pay?

Do you know how much you will pay?

Do you understand the contract?

What should you do if you need to complain?

Control debt - don’t let it control you!

LEARN HOW TO BORROW WISELY

How much can I afford to borrow?

Learn to calculate accurately your monthly savings.
Monthly loan repayments should not exceed 70% of your monthly savings.
E.g. If Income = 1000 and Expenses = 800 then Savings = 200.
Monthly repayments = 140 max.
Take a loan in the same currency as your income.
ECLOF will also assess your capacity to pay to ensure
you can afford the loan.

Do I know how much I will pay?

Learn how to compare different offers to make
an informed choice
It is a legal requirement in Armenia to provide APR/EIR
to help you compare the costs of loans.
Remember, a lower interest rate does not guarantee
a cheaper loan.
Ensure you include all costs and charges when calculating
your monthly repayments, not just interest payments
Beware of aggressive lenders – special offers
are seldom special
Carefully analyze the length of the loan – lower payments
over a longer period may not work out cheaper
ECLOF, like all MFC members, discloses all charges
including arrangement fees and penalties – not all loan
providers do.

Do I fully understand the contract?

Read the contract from beginning to end/ Your loan officer
should give you enough time for this. Understand the costs,
penalties, timings and mechanics of payments
Ask your loan oﬃcer for help to understand every point.
Always ask for clariﬁcation of professional/ﬁnancial jargon
used in the contracts (e.g. ask for explanation of terms like:
APR, annuity method, nominal rate, prepayment
commission etc.)
Take your time – take it home and consider - don’t be rushed

What should I do if I need to complain?

Please tell us if you are not satisﬁed
Always execute your right to complain.
Please contact us Head Office
2/1 Bagramyan str., Etchmiadzin, Armenia
Tel. (+374) 94 75-75-75
or The Office of Financial System Mediator
“Elite Plaza” Business Center, 7th floor,
15 Khorenatsi str., Yerevan 0010, Armenia
Tel. (+374) 10 58-23-22, 58-23-21
Your opinion helps us provide a better service for our customers

Control debt - don’t let it control you!

Too much debt can lead to problems with repayment
Avoid multiple loans: with several loans you are at greater risk
of over indebtedness
Take loans for investments, avoid taking loans for things
you desire but don’t need
Care about your credit history the records are there forever
Don’t take out a loan for someone else
Be careful about being a guarantor for someone else’s loan
Talk to your ECLOF loan officer if you are in trouble.
We are here to help.

BORROW Don’t know how much you can afford? Don’t know how much you will have to pay? If you don’t understand the contract? Not exercising your right to complain? Letting debt control you? FIND OUT WHAT NOT TO DO?	WISELY! How much can you afford to pay? Do you know how much you will pay? Do you understand the contract? What should you do if you need to complain? Control debt - don’t let it control you! LEARN HOW TO BORROW WISELY

How much can I afford to borrow? Learn to calculate accurately your monthly savings. Monthly loan repayments should not exceed 70% of your monthly savings. E.g. If Income = 1000 and Expenses = 800 then Savings = 200. Monthly repayments = 140 max. Take a loan in the same currency as your income. ECLOF will also assess your capacity to pay to ensure you can afford the loan.
Do I know how much I will pay? Learn how to compare different offers to make an informed choice It is a legal requirement in Armenia to provide APR/EIR to help you compare the costs of loans. Remember, a lower interest rate does not guarantee a cheaper loan. Ensure you include all costs and charges when calculating your monthly repayments, not just interest payments Beware of aggressive lenders – special offers are seldom special Carefully analyze the length of the loan – lower payments over a longer period may not work out cheaper ECLOF, like all MFC members, discloses all charges including arrangement fees and penalties – not all loan providers do.
Do I fully understand the contract? Read the contract from beginning to end/ Your loan officer should give you enough time for this. Understand the costs, penalties, timings and mechanics of payments Ask your loan oﬃcer for help to understand every point. Always ask for clariﬁcation of professional/ﬁnancial jargon used in the contracts (e.g. ask for explanation of terms like: APR, annuity method, nominal rate, prepayment commission etc.) Take your time – take it home and consider - don’t be rushed
What should I do if I need to complain? Please tell us if you are not satisﬁed Always execute your right to complain. Please contact us Head Office 2/1 Bagramyan str., Etchmiadzin, Armenia Tel. (+374) 94 75-75-75 or The Office of Financial System Mediator “Elite Plaza” Business Center, 7th floor, 15 Khorenatsi str., Yerevan 0010, Armenia Tel. (+374) 10 58-23-22, 58-23-21 Your opinion helps us provide a better service for our customers
Control debt - don’t let it control you! Too much debt can lead to problems with repayment Avoid multiple loans: with several loans you are at greater risk of over indebtedness Take loans for investments, avoid taking loans for things you desire but don’t need Care about your credit history the records are there forever Don’t take out a loan for someone else Be careful about being a guarantor for someone else’s loan Talk to your ECLOF loan officer if you are in trouble. We are here to help.