Car Loans

1.

Loan purpose

Car loans are designed for acquisition of new or second-hand vehicles/cars for personal use.

2. 

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.

3. 

Loan currency

AMD

4. 

Loan amount

4,000,000 - 50,000,000

5. 

Loan period

• For fixed rate loans: 36 - 60 months
• For floating rate loans: 61 - 84 months

6. 

Loan repayment schedule

• Annuity payments (the total of the principal and interest amounts will be payable in equal amounts on a monthly basis)
• Flexible (equal principal repayments), made on a monthly basis

7. 

Place of loan documentation

• Car showroom/partner organization (through online lending system)
• Bank (by a loan officer)

8. 

Annual (fixed) interest rates

Purchase in primary market^[1]

Nominal

Actual

Income verification

13% - 15%

13.82% -18.95%

Without income verification

16% - 17%

17.58% -21.36%

Purchase in secondary market

Income verification

15% - 16%

19.47% -20.68%

Without Income verification

17% - 18%

21.89% -23.12%

9.

Annual (floating) interest rate

Purchase in primary market

Starting interest rate: 14% (fixed component started at 5% + variable component)

Maximum  17.50%

Purchase in secondary market

(applicable only for cars not older than 3 years)

Starting interest rate: 15% (fixed component started at 7% + variable component)

Maximum 19.17%

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 after the loan origination and every 6 months afterwards using the interest rate (published on the website) applicable in the Bank at the time of revision.

Procedure for calculation of floating interest rate

10. 

Penalty for early loan repayment

Not applicable

11.

Penalty for late payment of the principal and interest

For past due principal amount - 0.015% per day,

For past due interest - 0.1% per day.

12. 

Loan security

• The vehicle to be purchased, while it should not be older than 7 years,
• For Russian vehicles, the loan will be issued solely for brand new cars,
• The following vehicles cannot be pledged as security for the loan:

1. Taxi vehicles and rental cars,

2. Cars transporting dangerous goods: toxic substances, chemicals, radioactive and explosive materials,

3. Cars intended for car competitions and car trial runs or three-wheeled or snow removal vehicles, motorcycles or special use vehicles,

• In individual cases, when relevant legal bases are available, the Bank can consider the car as purchased in the primary market if it is imported to Armenia and underwent customs clearance by the borrower within a one-month period and is flawless and fully functional (can be used for driving)
• Based on the decision of a competent body, surety bonds of individuals and/or legal entities may be required, in individual cases, also other security acceptable for the Bank.

13. 

Collateral appraisal

• If the car is purchased from  a car showroom, no appraisal will be conducted, rather the collateral value will be based on the value/selling price indicated by the selling company in the Bank’s electronic system or certificate issued by the latter.
• If the car is purchased in the secondary market, the collateral appraisal will be implemented by an appraisal company cooperating with the Bank.

14. 

Down payment

Primary market

With income analysis: minimum  10%

Secondary market

With income analysis: minimum  30%

Without income analysis

Minimum 40%

15.

Loan disbursement method

Non-cash

16. 

A lump-sum fee for loan disbursement or monthly loan service fee

Not applicable

17. 

Additional payments by the borrower

• Payments to competent state bodies for car purchase and collateral registration,
• Other payments according to the Bank’s FEES and RATES. For loans issued online, no fees will be charged for approval (documentation) of the car as collateral.

18. 

Insurance

Fully comprehensive (KASCO) insurance: each year throughout the loan period, to cover at least the loan principal balance.

If the car is purchased in primary market, KASCO insurance  may be bought at the expense of the Bank covering the loan principal balance, pursuant to the terms and conditions of the agreement signed by and between the partner company and the Bank.