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

Commercial mortgage loans

1.	Loan purpose	Loans are designed for acquisition (in primary and secondary markets), renovation, modernization or construction of commercial real property for manufacturing, social or other business purposes. The loan application may be approved with consideration of the cost estimate.
2.	Eligibility	RA residents aged 18– 63 who during the loan period will not turn 63 or the loan will be shared by a co-borrower who meets these requirements.
3.	Loan currency	AMD, USD, Euro
4.	Loan amount	Acquisition, constructionof real property		AMD 10,000,000 - AMD 120,000,000 or foreign currency equivalent
		Renovation		AMD 5,000,000 - AMD 30,000,000 or foreign currency equivalent
5.	Loan repayment period	Acquisition, construction of real property		AMD		Fixed rate		60 -180 months	Floating rate		60 - 240 months
				USD and Euro		Fixed rate		60 - 180 months	Floating rate		60 - 240 months
		Renovation							60 - 84 months
6.	Nominal (fixed) interest rate per annum^[1]	AMD					13.7% - 17%
		USD					9.2% - 12%
		Euro					7.2% - 10%
7.	Nominal (floating) interest rate per annum^[2]	AMD	Started at 13.2% (fixed component: started at 4.2% + variable component)
		USD	Started at 9.2% (fixed component: started at 8.2% + variable component)
		Euro	Started at 7.2% (fixed component: started at 7.2% + variable component)
		Maximum and minimum range of fluctuation of floating interest rate								+4%
8.	Penalty for early loan repayment	Not applicable
9.	Penalty for late payment of the principal and interest amounts	For past due principal amount - 0.015% per day, For past due interest - 0.1% per day.
10.	Loan security	The real property to be purchased, renovated, other real property. In case of land development, the land under development/real property under construction.
11.	Loan-to-value ratio^[3]	Acquisition in primary market (from the property developer) ^[4]			AMD – up to 90% of the appraised value^[5] Foreign currency – up to 70% of the appraised value
		Acquisition in secondary market			AMD – up to 85% of the appraised value^[6] Foreign currency – up to 70% of the appraised value
		Property construction and renovation			Up to 70% of the appraised value
12.	Insurance	Real property insurance - is to be implemented every year at the amount of the loan balance.
13.	Loan disbursement method	Non-cash: the loan amount will be transferred to the seller's bank account Loans for renovation and construction will be disbursed in a lump-sum or in several tranches which will be determined by a competent bank body. A decision on tranche loan will be made with consideration of the customer’s cost estimate, loan period, loan amount and customer's creditworthiness.
14.	Other conditions	In case of acquisition of real property, the borrower will make a down payment^[7], which will be frozen until the date of the loan disbursement. The borrower may refrain from making a down payment, instead pledging additional real property, in which case the loan amount should not exceed the appraised value of the real property, with retention of the loan-to-value ratio at 70%. In case of acquiring the real property in the primary market, the borrower can submit an invoice confirming the down payment issued by the property developer and/or contracts/agreements on down payment. The title to the real property may serve as security for the loan in which case the Bank may require pledging the funds deposited in the developer's special account in favor of the Bank to secure the following: a. the fulfillment of the developer's obligation to transfer the real property and its title to the buyer after the construction is complete, b. the fulfillment of developer's obligation to return the buyer's down payment in case of termination of the right of purchase agreement, c.fulfillment of obligation of registering the Bank's security interest in the real property in parallel with receiving the certificate of title to the real property.
15.	Timeline for making decision on loan application approval or rejection	The decision on approving or declining the loan application will be made within 10 (Ten) business days upon submission of the entire package of required preliminary documents, The loan will be provided within 2 (two) business days after the approval of the loan application and completion of property pledging procedure.

[1] If the insurance of the customer’s property is implemented by the Bank rather than the customer (will be implemented started the second year of the loan period) – mentioned interest rate + 0.2%.

[2] If the insurance of the customer’s property is implemented by the Bank rather than the customer (will be implemented started the second year of the loan period) – mentioned interest rate + 0.2%.

[3] In calculating the Loan-to-value ratio, we take into consideration either the real property appraisal or acquisition value, whichever is less.

[4] In case of unfinished construction (buying from a property developer) the collateral value is the purchase price indicated in the statement by the property developer and thereafter mentioned in real property purchase agreement.

[5] If the customer has a foreign currency loan, then up to 70% of the appraised value.

[6] If the customer has a foreign currency loan, then up to 70% of the appraised value.

[7] At the amount of difference between the property acquisition value and loan amount.