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

1.

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.

2. 

Eligibility

RA residents aged 18– 58 who earn their  income primarily in Armenia and who during the loan period will not turn 63 or the loan will be shared by a co-borrower who meets these requirements.

3. 

Loan currency

AMD

4. 

Loan amount

Real property acquisition, construction

AMD 2,000,000- AMD 35,000,000

Renovation

AMD 1,000,000- AMD 10,000,000

5.

Loan repayment period

Real property acquisition, construction

120 –  240 months

Renovation

60 – 84 months

 6.

Nominal interest rate per annum

Real property acquisition

 13%

Real property construction

13%

Renovation

13 %

If the Bank makes a down payment for the borrower, and pays for the borrower’s life insurance and property insurance, (started 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, (started the second year of the loan period)

Mentioned interest rate + 0.4%

 7.

Penalty for early loan repayment

Not applicable

8. 

Penalty charged for late payment of loan principal and/or interest

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

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

9. 

Loan repayment method

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

10.

Loan security

The property to be purchased, renovated, other property. In case of construction, the land lot under development/the property under construction, if necessary, other residential property.

11. 

Maximum acquisition and appraisal value of real property

AMD 55,000,000 /only for acquisition of real property

12. 

Loan-to-value ratio

1. Up to 70% of the value of residential real property^[1]
2. Up to 90% of the value of the residential real property to be purchased, if additional residential property is pledged  as well; besides, in case of pledging the property to be acquired together with another item of residential property, the loan amount cannot exceed 70% of the pledged property.
3. For property acquisition loans (if only the property to be acquired is pledged as collateral), the loan amount may equal 90% at most, if the mortgage loan is insured at the amount exceeding the Loan-to-value ratio of 70%.

13. 

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 incomes of the borrower and co-borrower(s).
3. The loan amount may equal 90% of the collateral value at most, if the mortgage loan insurance covers the amount exceeding the 70% of Loan-to-value ratio. The mortgage loan insurance should be effective until the borrower makes payment of at least equal to the amount exceeding the 70% of the Loan-to-value ratio.

14. 

Loan disbursement method

• Non-cash

15. 

Other conditions

• In case of acquisition of real property, the borrower will make a down payment ^[2], which will be frozen until the date of the loan disbursement.
• 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.
• Construction loan amounts should not exceed 80% of the estimate of construction costs as submitted by the customer.
• Construction loans should be disbursed in several tranches. The last tranche will finance the final stage of construction works and shall not exceed 20% of the loan amount.

16. 

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.