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

Property secured personal installment loan (with creditworthiness assessment)

Loan purpose

The loan is granted for the purpose of ordering or purchasing goods (work, services) for personal, family, home or other use not related to business activities.

Who can apply

Individual residents of RA between the age of 18-63, whose age will not exceed 63 years throughout the loan service period or have a co-borrower meeting the above criteria throughout the loan service period.Loan currency

 

AMD, USD, EUR

Loan amount

AMD

1,500,000 – 50,000,000

USD

3,000 - 100,000

EUR

3,000 - 80,000

Loan repayment period

In case of constant rate

In case of property pledge

24 - 84 months

In case of movable property pledge

24 - 60 months

In case of floating rate

36 - 120 months

Annual nominal interest rate (constant)

 

Nominal

Actual

AMD

In case of property

Up to 36 months

Loan to value up to 50%

16% - 17%

23.67%

Loan to value 51%-70%

17.5% - 18.5%

23․81%

Up to 84 months

Loan to value up to 50%

17% - 18%

23․71%

Loan to value 51%-70%

18.5% - 19.5%

23․90%

In case of car

18% - 19%

23․89%

USD

In case of property

Loan to value up to 50%

10.5%

17․09%

Loan to value 51%-70%

11.5%

18․29%

In case of car

14.5% - 16.5%

22․45%

EUR

In case of property

Loan to value up to 50%

9.5%

15․90%

Loan to value 51%-70%

10.5%

17․09%

In case of car

13.5%

20․73%

Annual nominal interest rate (floating)

 

During the first 24 months of loan provision

Starting from 25th month

Actual interes rate

AMD

Loan to value up to 50%

16% - 17%

6.5%  + variable component

23․67%

Loan to value 51%-70%

17.5% - 18.5%

8%  + variable component

23․81%

USD

Loan to value up to 50%

10.5%

8%  + variable component

17․09%

Loan to value 51%-70%

11.5%

9%  + variable component

18․29%

EUR

Loan to value up to 50%

9.5%

7.5%  + variable component

15․90%

Loan to value 51%-70%

10.5%

8.5% + փոփոխուն բաղադրիչ

17․09

Maximum and minimum fluctuations of the floating interest rate

+4%

The floating interest rate is the interest rate of the loan after the expiration of the 24th month of the loan.
The floating interest rate becomes effective upon the expiration of the 24th month of the loan agreement as a loan interest rate specified in the agreement. The variable component of the floating interest rate is revised regularly - twice a year – on February 1 and August 1. As a variable component the interest rate applicable (actually published on the website) in the Bank is applied since the forthcoming revision date following the expiration of the 24th month.
The floating interest rate is a nominal interest rate which is calculated according to the following formula.
𝑹𝐅 = 𝐑𝐕 + 𝐑𝐌
where RF – Floating interest rate
RV – Variable component
RM – Fixed component

The variable component of the floating interest rate (RV) is defined on the basis of the following market rates, depending on the loan currency:

  • The calculation of the main variable component in AMD is based on the yield to maturity of Armenian 6-month Government (treasury) bills. Information on the yield to maturity of Armenian 6-month Government (treasury) bills can be retrieved from the relevant publications (yield curve) on the official website of the CBA at the following link: https://www.cba.am/am/SitePages/fmofinancialmarkets.aspx.
    The variable component is reviewed on February 1 and August 1 each year. The variable component as of February 1 is equal to the average applicable interest rate effective for the period from June through November of the previous year. The variable component as of August 1 is equal to the average applicable interest rate effective for the period from December of the previous year through May of that specific year.
    Whenever the above indicator becomes inaccessible or irretrievable and the definition of the interest rate becomes impossible for the next period, the interest rate for the next period is determined based on the secondary indicator used by the Bank.
  • The calculation of the secondary variable component in AMD is based on the interest rates of the AMD-denominated deposits (except demand ones) of individuals for a one-year term which are published by the CBA. Information on the interest rates of the AMD-denominated deposits (except the demand ones) of individuals for a one-year term can be retrieved from the relevant publications on the CBA website at the following link: https://www.cba.am/am/SitePages/statmonetaryfinancial.aspx.

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.

  • The calculation of the main variable component in USD is based on the interest rates of the USD-denominated deposits of individuals for a one-year term which are published by the CBA. Information on the interest rates of the USD-denominated deposits of individuals for a one-year term can be retrieved from the relevant publications on the CBA website at the following link: https://www.cba.am/am/SitePages/statmonetaryfinancial.aspx.
    The variable component is revised twice a year on February 1 and August 1. The variable component as of February 1 is calculated as an average of the interest rates published from June through November of the previous year. The variable component 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. Whenever the above indicator becomes inaccessible or irretrievable and the definition of the interest rate becomes impossible for the next period, the interest rate for the next period is determined based on the secondary indicator used by the Bank.
  • The calculation of the secondary variable indicator in USD is based on Overnight secured financing rate for 6-month term (CME Term SOFR USD 6 Month). Information on Overnight secured financing rate for 6-month term can be retrieved from the relevant publications on the Bloomberg terminal at TSFR6M link. The variable component is revised twice a year on February 1 and August 1. The variable component as of February 1 is calculated as an average of the interest rates published from June through November of the previous year. The variable component 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.
  • The calculation of the main variable component in Euro is based on the European Interbank Offered 6-month Rate (EMMI EURIBOR 6 Month). Information on the European Interbank Offered 6-month rate can be retrieved from the relevant publications on Bloomberg terminal using the EUR006M link.  The variable component is revised twice a year on February 1 and August 1. The variable component as of February 1 is calculated as an average of the interest rates published from June through November of the previous year. The variable component 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.
  • The calculation of the secondary variable component in Euro is based on the 6-month yield curve of the German government bonds. Information on the interest rate of the 6-month yield curve of the German government bonds can be retrieved from the publications on Bloomberg terminal using the YCGT0016 link.

In case of moving from the primary to the secondary variable component an adjustment factor can be applied.

Early loan repayment penalty

In case of loans regulated by RA law “On consumer lending”  

No early payment fee is applicable

In case of loans not regulated by RA law “On consumer lending”

For the first half of the loan term, penalty is applied in case of early principal payment: 1% of the amount exceeding the monthly loan amount as specified in the schedule

For foreign currency loans not penalty is applied.

Penalty for loan principal and/or interest overdue

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

Loan provision methods

AMD

Non-cash

USD, EUR

Non-cash: transferring to card account

Loan repayment security measure

Movable or immovable property

 In case if movable property is pledged,  the following can be accepted:

· up to 3 old Russian made cars
· up to 7 old non-Russian made cars
· In case if loan to value ratio exceeds 40% for immovable  property pledge, and 30% for movable property pledge, then in addition to pledging movable or immovable property, the borrower is requested to have at least one individual or legal entity guarantee

Loan to value ratio

In case if immovable property is pledged

Up to 70% of the property value

In case if movable property is pledged

Up to 70% of the property value

Insuance

Car insurance – mandatory to do each year on loan’s outstanding amount

The amount of the loan balance each year

Fees

In case if the loan amount is received in cash, encashment fee is applied according to tariffs of the Bank

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.