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

1.          

Loan purpose

The loan is designed for acquisition of residential real property (apartment, single-family home) in primary and secondary markets or renovation or construction of a single-family home.

2.          

Eligibility

RA residents aged 18 – 65 who during the loan period will not turn 65 or the loan will be shared by a co-borrower who meets these requirements.

3.          

Loan currency

Armenian drams

4.          

Loan amount

Real property acquisition, construction

 AMD 2 000 000 – AMD 80 000 000

Real property acquisition, without income analysis

 AMD 2 000 000 – AMD 50 000 000

Renovation

 AMD 1 000 000 – AMD 10 000 000

5.          

Loan repayment period

Real property acquisition, construction

 60 - 180 months

Real property acquisition, construction, using floating interest rate

 60 - 240 months

Renovation

 60 - 84 months

Nominal (fixed) interest rate per annum

Real property acquisition, construction

14 - 15%

Real property acquisition, without income analysis

15 - 16%

Renovation

15 - 17%

If the Bank pays for property insurance on behalf of the borrower (will be implemented started the second year of the loan period).

 Loan interest rate + 0.2%

6.          

Actual (fixed) interest rate per annum

Real property acquisition, construction

15.22 – 19․49 %

Real property acquisition, without income analysis

16.39% - 20.71%

Renovation

16.66% - 23.21%

7.          

Annual (floating) interest rate

Real property acquisition, construction

Started at 13.2% (fixed component started at  4.2% + variable component)

Real property acquisition, without income analysis

Started at 14.2%  (fixed component started at 5.2% + variable component)

Renovation

Started at  14.2%  (fixed component started at 5.2% + variable component)

Maximum and minimum range of fluctuation of floating interest rate

+ 4%

The variable component of the floating interest rate will be revised starting the first due date following the 36-month period (for renovation loans – 12-month period) after the loan origination and every 6 months afterwards using the interest rate applicable in the Bank at the time of revision (published on the Bank’s website).

Procedure for calculating floating interest rate

If the Bank pays for property insurance on behalf of the borrower (will be implemented started the second year of the loan period).

 Loan interest rate + 0.2%

8.          

Actual (floating) interest rate per annum

Real property acquisition, construction

14.46% - 19.12%

Real property acquisition, without income analysis

15.67% - 20.33%

Renovation

16.11% - 22.25%

9.          

Penalty for loan prepayment

In the event of refinancing of the loan (fully repaying it) by another financial institution, the Bank will have the right to charge a one-time penalty:

1. At 0.6% of the outstanding loan at max, if the loan is prepaid during the first year of effectiveness of the loan agreement,

2. at 0.4% of the outstanding loan at max, if the loan is prepaid within the second year of effectiveness of the loan agreement,

3. at 0.2% of the outstanding loan at max, if the loan is prepaid within the third year of effectiveness of the loan agreement.

10.        

Penalty for late payment of loan principal and interest

For past due principal amount - 0.015% per day,

For past due interest -  0.1% per day.

11.        

Loan repayment method

The loan will be repaid via annuity payments or equal principal installments; payments will be made on a monthly basis.

12.        

Loan security

1.      The real property to be purchased, renovated, another real property item. In the event of construction, the land lot under development/real property under construction.

2.      In the event of purchasing real property in a house under construction, the preemptive right over the property in the house under construction.

3.      If the borrower is acquiring real property in a house under construction and the developer's special account is opened with another bank, the preemptive right over the property in the house under construction, as well as other real property whose market value is not lower than the requested loan amount.

4.      Apart from pledging the real property, the Bank may request a submission of  a surety bond issued by at least an individual or a legal entity.

13.        

Loan-to-value ratio[1]

Acquisition in the primary market (from a developer)[2]

Up to 90% of the appraised value

Acquisition in the secondary market

Up to 85% of the appraised value

Without income analysis

Up to 70% of the appraised value

Construction and renovation

Up to 70% of the appraised value

When pledging additional real property, the loan amount cannot exceed the market value of the property to be purchased, provided that the Loan-to-Value ratio does not exceed 70% of the total market value of all pledged property.

Insurance

Real property insurance: annually at the amount of outstanding loan

14.        

Loan disbursement method

·      Non-cash (the loan amount will be transferred to the seller's account).

·      Renovation and construction loans will be disbursed in a lump-sum or in several tranches, which will be determined by a competent body taking decisions on loan approval. In the event of loan disbursement in tranches, their number will be determined with consideration of the Borrower's cost estimate, loan period, loan amount and Borrower's credit rating.

15.        

Other provisions

·      In case of purchasing real property, the Borrower will make a down payment[3], which will be frozen until the date of the loan disbursement.

·      In case of purchasing the real property in the primary market, the Borrower can submit as a document confirming the down payment a prepayment receipt issued by the developer and/or deposit contracts/agreements.

16.        

2.  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.