Property Secured Personal Loans (without income statements)

1.

Loan purpose

Loans are designed for purchasing, ordering of goods (services) for non-commercial personal, family, household use, or for refinancing the old loans advanced by other financial institutions.

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, USD, Euro

4. 

Loan amount

AMD

2,000,000 – 50,000,000

USD, Euro

5,000 – 100,000

5.

Loan repayment period

For fixed interest rate

24 - 84 months

For floating interest rate

36 - 120 months

6.

Nominal (fixed) interest rate per annum

Up to 60 months

61- 84 months

Nominal

Actual

Nominal

Actual

AMD

16%

18.20%

17%

18.85%

USD

10%

11.34%

11%

11.97%

Euro

9%

10.16%

10%

10.82%

7.

Annual (floating) interest rate

Nominal

Actual

AMD

Started at 15% (fixed component: started at 6% + variable component)

Maximum started at 16.75%

USD

Started at 9% (fixed component: started at  8% + variable component)

Maximum started at 9.98%

Euro

Started at 8% (fixed component: started at  8% + variable component)

Maximum  started at 8.83%

Maximum and minimum range of fluctuation of floating interest rate

+4%, but not more than 21%

The variable component of the floating rate will be revised starting the first due date following the 24-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

8.

Loan disbursement method

AMD

Non-cash (loan amount will be credited to the customer’s card account)

USD, Euro

Non-cash (loan amount will be issued through a payment card by crediting the loan amount to the card account).

9.

Penalty for  early repayment of the loan amount

For loans not subject to  regulation of the RA law on Consumer Lending

Not applicable

For loans not subject to  regulation of the RA law on Consumer Lending

If prior to the end of the first half of the contract period,  the principal repayments exceed monthly principal amounts scheduled under the loan agreement, the borrower must pay a penalty of 1% of the amount exceeding the monthly principal amount.

No penalty will be applied to the loans denominated in foreign currency.

10.

Penalty charged for late payment of the principal and interest amounts

For past due principal amount - 0.015% per day,

For past due interest - 0.1% per day.

11.

Loan security

Real property (apartment, single-family home, non-commercial premises) in Yerevan, Lori, Shirak and Kotayk provinces.
Apart from real property collateral, a surety of at least an individual or a legal entity will be required if Loan-to-value ratio exceeds 30%.

12.

Loan-to-Value ratio

Up to 50% of the appraised value of the property

13.

Creditworthiness assessment

If the loan amount exceeds 30% of the collateral value, the FICO score of the borrower or surety should be 510 and above, besides, in the past 12 months the borrower should not have classified credit liabilities and the total number of days past due should not be more than 30.

14.

Fees and charges

• If the loan amount is withdrawn from the loan account, the Bank will charge a cash withdrawal fee according to the Bank rates and fees.

15. 

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.

16.

Other provisions

• The borrower and pledger should be the same individual, otherwise they should share a common budget and residence space (live under the same roof).
• In case of refinancing the loans with other financial organizations, the fees for collateral appraisal, issuance of encumbrance certificate, notarial validation of collateral agreement and registration of collateral agreement with RA Real Estate Cadastre can be paid by the Bank provided that the loan amount exceeds AMD 5,000,000/ USD 10,000/ Euro 10,000. In this case, if the loan amount is repaid in full during the 24 months following the signing of loan agreement, the borrower shall reimburse the above-mentioned costs associated with loan refinancing.