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

Housing mortgages (without income analysis)

Loan purpose

The loan is granted for property purchase.

Who can apply

Individual residents of RA between the age of 18-63, whose age will not exceed 63 years throughout the loan service period or have a co-borrower meeting the above criteria throughout the loan service period.

Loan currency

USD, EUR

Loan amount

4,000-50,000

Loan repayment period

Up to 120 months

Annual nominal interest rate

(fixed)

USD

Loan/value up to 60%

11%

Loan/value 60,1%-70%

12%

 

EUR

 

Loan/value up to 60%

9%

Loan/value 60,1%-70%

10%

In case of property insurance by the bank instead of the customer (implemented from the second year of the loan)

Mentioned interest rate + 0.2%

Early loan repayment penalty

Not applicable

Penalty for loan principal and/or interest overdue

For overdue principal - 0,015 % daily,

For overdue interest - 0,1 % daily

Loan payment schedule

Annuity or with equal principal installments. Payments must be done on monthly basis. 

Loan repayment security measure

Property located in Yerevan.

Except for property pledge the borrower also need to have at least one individual’s or legal entity’s guarantee. The latters should be residents of RA.

Loan to value ratio[1]

Up to 70% of the property value

Insurance

Property insurance – mandatory to do each year on loan’s outstanding amount

Loan provision methods

· Non-cash – the amount is transferred to the seller’s account

Bank commissions

Loan account service fee – 0,3% of the loan’s principal amount

Creditworthiness assessment

For the past 1 year the Customer should not have any credit facility classification, and the total number of overdue days should not exceed 30 days.

Other terms

· the Borrower credits prepayment [2] on the Bank’s account, which is being frozen till loan disbursement 
· In case of property purchase from primary market as a document confirming the prepayment, the Customer may present to the Bank payment slip provided by the constructor and/or prepayment agreements/consents.
· The pledger and the borrower should be the same person
· Customer should introduce his/her source of income

Deadlines for approving or rejecting loan provision

· The decision to approve or reject the loan is made within 10 (ten) working days maximum, after fully providing all the initial documents requested by the Bank.
· The loan is disbursed in case of positive decision made by the Bank and within maximum 2 (two) working days since the property is pledged.

[1] Loan to value ratio is calculated based on the lower value as per property’s  valuation act or purchase price
[2] By the difference of property purchase price  and loan amount