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

Loan purpose

Loans will be provided for acquisition or renovation of residential property, including apartment, single-family home, residential house (both in primary and secondary markets), as well as for construction of a single-family home, residential house.

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.

Loan currency

AMD

Loan amount

Real property acquisition, construction

 2,000,000 - 80,000,000

Renovation

 1,000,000 - 10,000,000

Loan repayment period

Real property acquisition, construction

 60 - 240 months

Renovation

 60 - 84 months

Nominal interest rate per year ^[1]

Real property acquisition, construction

Started at  13.2% (fixed component: started at  4.2% + 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.

You can get acquainted with the procedure for calculating the floating interest rate here.

Penalty for early loan repayment

Not applicable

Penalty charged for late payment of loan principal and interest

For past due principal - 0,015 % per day,

For past due interest - 0,1 % per day. 

Loan repayment method

Annuity or equal principal payments to be made on a monthly basis.

Loan security

1. The property to be purchased, renovated, other property. In case of construction, the land plot to be developed/the property under construction.
2. In case of acquiring a property in a residential house under construction and the developer's special account opened with another bank, the right to purchase the property in the building as well as another real property, whose market value should not be less than the expected loan amount.

Loan-to-value ratio^[2]

Acquisition in primary market (from developer)^[3]

Up to 90% of the appraised value^[4]

Acquisition in secondary market

Up to 85% of the appraised value ^[5]

Construction and renovation

Up to 70% of the appraised value

Insurance

Real property insurance  is to be implemented every year at the amount of the loan balance.

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 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.

Other conditions

• In case of acquisition of real property, the borrower will make a down payment ^[6], 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.

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.