Individual loans provided to individuals by products / Terms and Tariffs /
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- Property secured personal installment loan (with creditworthiness assessment)
- Personal loan with guarantee
- Student consumer loans (program)
- Loans with gold pledge (Lombard loan)
- Gold mortgage (pawnshop) loans with credit rating
- Overdrafts with payment cards (credit cards)
- Overdrafts with payment cards (credit cards) for Bank’s customers
- Credit limit provided by Visa Infinite payment cards
- Credit limit provided by Visa Vision payment cards
- Evolution
- Credit limit secured by funds
- Loans in the framework of Renewable Energy and Energy Saving programs
- Action
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- Housing mortgage loans
- Mortgage loans, Affordable Housing for Young Families
- Mortgage loans within the framework of the program on National Mortgage Company
- Commercial mortgage loans
- Mortgage loan (within the framework of the program of National Mortgage Company RCO CJSC Housing Mortgage Financing, 4th Phase)
- Renovation loans / within the framework of the programs of the National Mortgage Company, Jerm Ojakh (“Warm House”)
- National Mortgage Company Energy Efficiency Improvement Repair Loans "My Roof"
- Residential Energy Efficient Loans under National Mortgage Company Program
- Housing mortgages with floating interest rate
- Housing mortgages for non-resident individuals
Housing mortgages with floating interest rate
Loan purpose |
The loan is provided for purchasing (in primary and secondary markets) or renovating of residential property – an apartment, a house or for home construction. The basis for provision of renovation and construction loans is the estimate of future expenses. |
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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. |
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Loan currency |
AMD |
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Loan amount |
Purchase, construction of real property |
AMD 2,000,000 - 80,000,000 |
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Renovation |
AMD 1,000,000 - 10,000,000 |
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Loan repayment period |
Purchase, construction of real property |
AMD |
60 - 240 months |
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Renovation |
60 - 84 months |
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Nominal interest rates per annum[1] |
Purchase or construction of real property |
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AMD |
Starting 13.2% (fixed component: starting 4.2% + variable component) |
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Renovation of real property |
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AMD |
Starting 14.2% (fixed component: starting 5.2% + variable component) |
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The maximum and minimum threshold of floating rate fluctuations |
+4% |
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The variable component of the floating interest rate will be revised on the forthcoming revision date following the expiration of the 36th month of the loan agreement (for renovation – 12th 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 a nominal interest rate which is calculated according to the following formula.
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.
In case of moving from the primary to the secondary variable component an adjustment factor can be applied. |
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Penalty charged for loan prepayment |
Not applicable |
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Values of past and present variable components |
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Penalty for overdue loan principal and interest |
For overdue principal - 0.015% per day, For overdue interest - 0.1% per day. |
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Loan repayment scheme |
Annuity plan or equal principal repayments; payments should be made on a monthly basis. |
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Loan security |
1. The real property to be purchased or renovated, as well as other real property. In case of construction loans, the plot of land on which the house is built. 2. The loan may be secured by a right of first offer, in which case the Bank may require that the funds entered in the developer’s special account be pledged by the developer in favor of the Bank in order to ensure the following: a. fulfillment of developer’s commitment to hand over the real property to the buyer as their own property as soon as the building is complete. b. fulfillment of the developer’s commitment to return the down payment to the buyer in case of termination of the agreement on right of first offer of property in the house under construction, c. fulfillment of the buyer’s commitment to register the Bank’s security interest upon completion of the construction of the house and acquisition of a real property ownership certificate, 3. If the loan is intended for purchasing an apartment in the house under construction and the developer’s special account is with other bank, then the right of first offer as well as other real property whose market value should not be less than the expected loan amount. |
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Loan-to Value ratio[2] |
Purchasing in the primary housing market (from the developer)[3] |
In AMD: up to 90%[4] of the appraised value |
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Purchasing in the secondary housing market |
In AMD: up to 85% [5] of the appraised value |
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Construction and renovation |
Up to 70% of the appraised value |
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Insurance |
Annual insurance of the real property is required to cover the outstanding loan balance. |
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Loan disbursement method |
· Non-cash (the loan amount is credited to the seller’s account). Renovation and construction loans are provided in a lump-sum or in tranches, which should be determined by a competent body in-charge of decision-making on Loan approval. In case of multi-tranche loans, the loan portions will be determined on the basis of the estimate of expenses, loan repayment period, loan amount and Customer’s creditworthiness. |
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Other conditions |
· In case of purchasing real property, the Borrower should make a down payment[6], which is to be frozen in the Bank until the loan disbursement. · The Borrower may prefer not to make the down payment, instead pledging additional real property; in which case the Loan amount should not exceed the real property’s appraised market value along with maintenance of the Loan-to-Value ratio at 70%. · In case of purchasing the real property in the primary housing market, as a document confirming the down payment the Borrower can submit the developer’s receipt stating the advance payment and/or advance payment agreements/contracts. · In case of obtaining the right of first offer, the loan may be secured by the right of first offer, in which case the Bank may require that the funds entered in the developer’s special account be pledged by the developer in favor of the Bank in order to ensure the following: a. fulfillment of developer’s commitment to hand over the real property to the buyer as their own property as soon as the building is complete, b. fulfillment of the developer’s commitment to return the down payment to the buyer in case of termination of the agreement on right of first offer of property in the house under construction, c. fulfillment of the buyer’s commitment to register the Bank’s security interest upon completion of the construction of the house and acquisition of a real property ownership certificate |
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2. 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. |
[1] In case the property insurance is executed by the Bank rather than by the customer (is implemented starting the second year of the loan agreement) , the mentioned interest rate + 0.2%
[2] In calculation of the Loan-to-Value ratio, we take into consideration the real property appraisal and acquisition value, whichever is less.
[3] A collateral value of an unfinished house (to be bought from the developer) is the price indicated in the developer’s reference which is stated thereafter in the purchase and sale contract.
[4] If the Customer has a loan in foreign currency, then up to 70% of the appraised value.
[5] If the Customer has a loan in foreign currency, then up to 70% of the appraised value.
[6] Iո the amount of difference between the property acquisition price and the loan amount.