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Loans to individuals

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

Mortgage Loans under the National Mortgage Company program

1.	Loan purpose	Acquisition of existing residential real property or property under construction for personal use.
2.	Eligibility	RA citizens aged 18– 65 who earn their income primarily in Armenia and who will not turn 65 during the loan term otherwise the loan will be shared by a co-borrower who meets these requirements
3.	Loan types	Standard acquisition loans		Green loans
4.	Loan currency	AMD
5.	Loan amount	2 000 000- 35 000 000		2 000 000- 45 000 000
6.	Loan period	120 – 240 months
7.	Annual interest rates	Nominal	Actual	Nominal	Actual
		13%	14.40%	12.5%	13.84%
		If the Bank makes a down payment for the borrower, and pays for the borrower’s life insurance and property insurance, (starting the second year of the loan period)			Mentioned interest rate + 0.6%
		If the Bank pays for the borrower’s life insurance and property insurance, (starting the second year of the loan period)			Mentioned interest rate + 0.4%
8.	Penalty for early loan repayment	Not applicable
9.	Penalty for late payment of principal and interest	For past due principal - 0,015 % per day, For past due interest - 0,1 % per day
10.	Loan repayment method	Annuity or equal principal payments to be made on a monthly basis.
11.	Loan security	For loans provided for existing real property - the residential property to be purchased; while for loans advanced for purchasing real property under construction - the pledge of the right of first offer and the funds available in the developer’s special account until the title to the real property is registered, upon its registration, the real property will serve as the loan security.
12.	Maximum acquisition and appraisal value of the real property	AMD 55 000 000
13.	Loan-to-value ratio	1. Up to 70% of the value of the residential real property^[1] 2. Up to 90% of the value of the real property to be purchased, if additional residential property is pledged as well; besides, if the loan is secured by the property in question together with another item of residential property, the loan amount cannot exceed 70% of the total value of the pledged property. 3. The loan amount may equal 90% of the collateral value at most (if the loan is secured only by the property to be purchased) if the mortgage loan is insured at the amount exceeding 70% of the Loan-to-value ratio.
14.	Insurance	1. Insurance of the pledged property. 2. Borrower’s and co-borrower(s) (if any) life insurance policies. If the loan is shared by co-borrower(s), life insurance will be paid from the loan amount in proportion to the borrower’s and co-borrower(s)’ income. 3. The loan amount can be 90% of the collateral value at most, if the mortgage loan is insured at the amount exceeding 70% of the Loan-to-value ratio. The mortgage loan insurance should be effective until the borrower makes payment at least equal to the amount which exceeds 70% of the Loan-to-value ratio.
15.	Loan disbursement method	Non-cash
16.	Other terms and conditions	The Borrower will make a down payment^[2], which will be frozen in the relevant account until the loan disbursement. For all mortgage loans, when the residential property is acquired from the developer, the building should have at least class B energy passport.
17.	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 process.

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

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