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

Primary market

Secondary market

Loan purpose

The loan is provided to young families for purchasing (and permanently residing)  of   an existing residential property or a residential property that is under construction.

The loan is provided to young families for purchasing (and permanently residing)  of   existing (completion rate of 80% or higher) residential property.

Who can apply

RA citizens or non-RA citizens whose spouse is RA citizen. The total age of the spouses should  not exceed 70, or a young single parent under the age of 35 (inclusive).

Spouse’s family every member can be considered as co-borrower (family members are considered to be wife/husband, borrower’s and his/her spouse’s parents, sisters and brothers). The age of the co-borrowers should not exceed 61.

Co-borrower

Borrower’s spouse and their family members (family members are considered to be wife/husband, borrower’s and his/her spouse’s parents, sisters and brothers).

Location

In the whole territory of RA

Loan currency

AMD

Loan repayment period

120 - 180 months

Loan amount and loan to value ration

1. In Yerevan and  regions of RA AMD 27,000,000, but not more than 80%[1] of the residential property value to be purchased
2. In Yerevan and regions of RA AMD 27,000,000 mln, but not more than 90% of the residential property value to be purchased, provided that at least one of the below requirements is met:

 a)  in addition to pledging the purchased residential house or apartment, that is considered to be the loan security, additional residential property to be pledged, provided that in case of pledging 2 properties (the property to be purchased and additional residential property) the loan amount cannot exceed 80% of the total value of the pledged properties.  
b)  in addition to pledging the purchased residential house or apartment, that is considered to be the loan security, the borrower should also present a guarantee   provided by a legal entity occupying 1-300 places in the list of large taxpayers of RA
c) There is a mortgage liability insurance signed  by the difference of 20% of the purchased property/apartment value and of prepayment of 10% or more made by the borrower[2]

In Yerevan and  regions of RA AMD 22.5 mln, but not more than 70% of the residential property value to be purchased

In Yerevan and regions of RA AMD 22.5 mln, but not more than90% of the residential property value to be purchased, provided that at least one of the below requirements is met:

a)  in addition to pledging the purchased residential house or apartment, that is considered to be the loan security, additional residential property to be pledged, provided that in case of pledging 2 properties ( the property to be purchased and additional residential property) the loan amount cannot exceed 70% of the total value of the pledged properties.
b)  in addition to pledging the purchased residential house or apartment, that is considered to be the loan security, the borrower should also present a guarantee   provided by a legal entity occupying 1-300 places in the list of large taxpayers of RA 

գ) There is a mortgage liability insurance signed  by the difference of 30% of the purchased property/apartment value and of prepayment of 10% or more made by the borrower 

Annual nominal interest rate

6.9% interest rate set up by the Bank which is not being subsidized

6.9% interest rate set up by the Bank , out of which:

· 2% is subsidized in case if  the residential property is purchased in Yerevan
· 4% is subsidized in case if the residential property is purchased in RA regions

In case of prepayment by the bank instead of the customer, in case of insurance of the personal accident and  property insurance (implemented from the second year of the loan validity)

Mentioned interest rate + 0.6%

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

Mentioned interest rate + 0.4%

The interest rate may be revised every 3 year.

Loan provision method

One-off or in phases. In the meantime in case of phased loan the last phase should be granted given that the property has 80% or more completion. 

One-ff

Early loan repayment penalty

No early loan repayment fee is applicable

Penalty for loan principal and/or interest overdue

For overdue principal - 0,015 % daily,
For overdue interest - 0,1 % daily

Loan payment schedule

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

Loan repayment security measure

The property to be purchased

The maximum value of the property to be purchased

Purchase price not more than AMD 30,000,000, meanwhile valuated market price should not be more than AMD 31,000,000.

The purchased as well as the valuated market prices are compared with average prices published by the National Statistical Service of RA (with  the latest published data) taking into consideration the area and the location of the apartment.

Particularly, the multipliers of the property area and the average price of one square meter for the given area should not exceed AMD 31,000,000.

Purchase price not more than AMD 25,000,000, meanwhile valuated market price should not be more than AMD 26,000,000.

The purchased as well as the valuated market prices are compared with average prices published by the National Statistical Service of RA (with  the latest published data) taking into consideration the area and the location of the apartment.

Particularly, the multipliers of the property area and the average price of one square meter for the given area should not exceed AMD 26,000,000.

Insurance

1.  Insurance of the pledged property
2.  Accidental death insurance policies for the Borrower and co-borrower/s (if applicable). Moreover, in case of presence of co-borrower/s, payment for accidental death insurance is debited from the loan amount in proportion to Borrower’s and co-borrower’s income.
3.  The loan amount can comprise maximum 90%, provided there is mortgage liability insurance in place for the amount exceeding 70% (80% for the primary market) of LTV ratio. Mortgage liability insurance should be valid till the moment when the borrower makes loan payment exceeding 70% (80% for primary market) of LTV ratio

Loan provision methods

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

Other terms

· In case of property purchase the Borrower credits prepayment [3] 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. 

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.