Individual loans provided to individuals by products / Terms and Tariffs /

Loan purpose

The loan is provided for purchase/order of goods (works, services) intended for personal, family, household or other uses, unassociated with entrepreneurial activities.

Eligibility

RA residents aged 18-63 who during the debt service period will not reach the age of 63, otherwise the potential borrower needs a co-borrower to qualify for the loan.

Loan currency

AMD, USD, Euro

Loan amount

AMD (in case of pledging of real property)

2,000,000 – 50,000,000

AMD (in case of pledging of a car)

5,000,000 – 50,000,000

USD

4,000 - 100,000

Euro

4,000 - 80,000

Loan repayment period

Fixed interest rate

Real property as collateral

24 - 84 months

Car as collateral

60 months

Floating interest rate

36 - 120 months

Nominal (fixed) interest rates per annum

Actual

AMD

Real property as collateral

Up to 36 months

Loan-to-Value ratio up to 50%

16% - 17%

17.28%- 20.03%

Loan-to-Value ratio 51-70%

17.5% - 18.5%

19.03%- 21․83%

37 - 84 months

Loan-to-Value ratio up to 50%

17% - 18%

18.42%- 20․72%

Loan-to-Value ratio 51-70%

18.5% - 19.5%

20.18%- 22․54%

Car as collateral

19.5% - 20.5%^[1]

23.34%- 23.91%

USD

Real property as collateral

Loan-to-Value ratio up to 50%

10.5%

12․72%

Loan-to-Value ratio 51% - 70%

11.5%

13․86%

Car as collateral

14.5% - 16.5%

19.12%- 22․30%

Euro

Real property as collateral

Loan-to-Value ratio up to 50%

9.5%

11․47%

Loan-to-Value ratio 51% - 70%

10.5%

12․59%

Car as collateral

13.5%

18․60%

Nominal (floating) interest rates per annum

AMD

Loan-to-Value ratio up to 50%

starting 16% (fixed component: starting 7% + variable component)

Maximum - 22.05%

Loan-to-Value ratio 51 - 70%

starting 17% (fixed component: starting 8% + variable component)

Maximum - 23․29%

USD

Loan-to-Value ratio up to 50%

starting 11% (fixed component: starting 10% + variable component)

Maximum - 15.62%

Loan-to-Value ratio 51 - 70%

starting 12% (fixed component: starting 11% + variable component)

Maximum - 16.77%

Euro

Loan-to-Value ratio up to 50%

starting 9.5% (fixed component: starting 9.5% + variable component)

Maximum - 14.48%

Loan-to-Value ratio 51 - 70%

starting 10.5% (fixed component: starting 10.5% + variable component)

Maximum - 15․62%

The maximum and minimum threshold of floating rate fluctuations

+4%, but not more than 21%

The variable component of the floating interest rate will be revised on the forthcoming revision date following the expiration of the  24^th month, thereafter, every 6 months with application of the rate (published on the Bank’s website) effective at the moment of revision.

The floating interest rate is the interest rate of the loan after the expiration of the 24th month of the loan.
The floating interest rate becomes effective upon the expiration of the 24th month of the loan agreement as a loan interest rate specified in the agreement. The variable component of the floating interest rate is revised regularly - twice a year – on February 1 and August 1. As a variable component the interest rate applicable (actually published on the website) in the Bank is applied since the forthcoming revision date following the expiration of the 24th month.
The floating interest rate is a nominal interest rate which is calculated according to the following formula.
𝑹𝐅 = 𝐑𝐕 + 𝐑𝐌
where RF – Floating interest rate
RV – Variable component
RM – Fixed component

The variable component of the floating interest rate (RV) is defined on the basis of the following market rates, depending on the loan currency:

• The calculation of the main variable component in AMD is based on the yield to maturity of Armenian 6-month Government (treasury) bills. Information on the yield to maturity of Armenian 6-month Government (treasury) bills can be retrieved from the relevant publications (yield curve) on the official website of the CBA at the following link: https://www.cba.am/am/SitePages/fmofinancialmarkets.aspx.
  The variable component is reviewed on February 1 and August 1 each year. The variable component as of February 1 is equal to the average applicable interest rate effective for the period from June through November of the previous year. The variable component as of August 1 is equal to the average applicable interest rate effective for the period from December of the previous year through May of that specific year.
  Whenever the above indicator becomes inaccessible or irretrievable and the definition of the interest rate becomes impossible for the next period, the interest rate for the next period is determined based on the secondary indicator used by the Bank.
• The calculation of the secondary variable component in AMD is based on the interest rates of the AMD-denominated deposits (except demand ones) of individuals for a one-year term which are published by the CBA. Information on the interest rates of the AMD-denominated deposits (except the demand ones) of individuals for a one-year term can be retrieved from the relevant publications on the CBA website at the following link: https://www.cba.am/am/SitePages/statmonetaryfinancial.aspx.

The secondary variable component is revised on February 1 and August 1 each year. The secondary indicator as of February 1 is calculated as an average of the interest rates published from June through November of the previous year. The secondary indicator as of August 1 is calculated as an average of the interest rates published from December of the previous year through May of that specific year.

• The calculation of the main variable component in USD is based on the interest rates of the USD-denominated deposits of individuals for a one-year term which are published by the CBA. Information on the interest rates of the USD-denominated deposits of individuals for a one-year term can be retrieved from the relevant publications on the CBA website at the following link: https://www.cba.am/am/SitePages/statmonetaryfinancial.aspx.
  The variable component is revised twice a year on February 1 and August 1. The variable component as of February 1 is calculated as an average of the interest rates published from June through November of the previous year. The variable component indicator as of August 1 is calculated as an average of the interest rates published from December of the previous year through May of that specific year. Whenever the above indicator becomes inaccessible or irretrievable and the definition of the interest rate becomes impossible for the next period, the interest rate for the next period is determined based on the secondary indicator used by the Bank.
• The calculation of the secondary variable indicator in USD is based on Overnight secured financing rate for 6-month term (CME Term SOFR USD 6 Month). Information on Overnight secured financing rate for 6-month term can be retrieved from the relevant publications on the Bloomberg terminal at TSFR6M link. The variable component is revised twice a year on February 1 and August 1. The variable component as of February 1 is calculated as an average of the interest rates published from June through November of the previous year. The variable component as of August 1 is calculated as an average of the interest rates published from December of the previous year through May of that specific year.
• The calculation of the main variable component in Euro is based on the European Interbank Offered 6-month Rate (EMMI EURIBOR 6 Month). Information on the European Interbank Offered 6-month rate can be retrieved from the relevant publications on Bloomberg terminal using the EUR006M link.  The variable component is revised twice a year on February 1 and August 1. The variable component as of February 1 is calculated as an average of the interest rates published from June through November of the previous year. The variable component as of August 1 is calculated as an average of the interest rates published from December of the previous year through May of that specific year.
• The calculation of the secondary variable component in Euro is based on the 6-month yield curve of the German government bonds. Information on the interest rate of the 6-month yield curve of the German government bonds can be retrieved from the publications on Bloomberg terminal using the YCGT0016 link.

In case of moving from the primary to the secondary variable component an adjustment factor can be applied.

Penalty charged for loan prepayment

Loans regulated under the RA law on Consumer Loans

Not applicable

Loans that aren’t regulated by the RA law on Consumer Loans

If prior to the end of the first half of the loan period the Borrower repays monthly principal exceeding the scheduled amount under the agreement, the Borrower shall pay a penalty at 1% of the amount exceeding the monthly payable principal.

No penalty is applied to loans in foreign currency.

Penalty for overdue loan principal and interest

For overdue principal - 0.015% per day,

For overdue interest - 0.1% per day.

Loan disbursement method

AMD

Non-cash (the loan amount is credited to the seller’s account).

USD, Euro

Non-cash (the loan amount is credited to the card account via a payment card).

Loan security

Real or movable property (car/vehicle)

1.      Vehicles as collateral:

·        Russian vehicles under the age of 3,

·        Non-Russian vehicles under the age of 7.

2.     In case the Loan-to-Value ratio exceeds 40% (for real property), and 30% (for movable property), apart from real or movable property collateral the Borrower shall provide a surety bond issued by an individual or a legal entity.

Loan-to-Value ratio 

Real property as collateral

Up to 70% of the appraised value

Movable property (car) as collateral

Up to 50% of the appraised value

Insurance

Insurance of the car pledged as security for the loan.

Annual insurance of the car to cover the outstanding loan balance.

Charged fees

In case of cash withdrawal, a withdrawal fee will be charged by the Bank.

Timeframe for making decisions on approving or rejecting the loan application

·   The decision on approval or rejection of the loan application is made within 10 (ten) business days upon submission of the full package of preliminary documents required by the Bank.

·   The loan is provided to the Borrower in case of the Bank’s positive decision within 2 (two) business days upon completion of the pledging process