Property Secured Personal Loans (without income statements)

1.

Loan purpose

Loans are designed for purchasing, ordering of goods (services) for non-commercia,l personal, family, household use.

2. 

Eligibility

RA residents aged 18– 65 who during the loan period will not turn 65 or the loan will be shared by a co-borrower who meets these requirements.

3. 

Loan currency

AMD

4. 

Loan amount

2,000,000 – 50,000,000

5. 

Loan repayment period

For fixed interest rate

24 - 84 months

For floating interest rate

36 - 120 months

6.

Annual (fixed) interest rate

Nominal

Actual

17%

19.42%

7.

Annual (floating) interest rate

Nominal

Actual

Starting rate: 16% (fixed component: started at 7% + variable component)

18.22%

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 repayment schedule

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

9. 

Penalty for  early repayment of the loan amount

For loans 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 the loan is aimed at  refinancing the loan with other banks or credit organizations and prior to the end of the first half of the contract period the principal loan amount is prepaid in full or in part, the borrower will pay a penalty of 1% of the prepaid amount.

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 disbursement method

Non-cash (the loan amount will be transferred to the customer’s bank account)

12. 

Loan security

Real property (apartment, single-family home, non-production premises) in Yerevan, Lori, Shirak and Kotayk provinces.

Apart from real property pledging, the borrower will be required to submit a surety bond issued by at least one  individual or legal entity.

13. 

Loan-to-value ratio 

Up to 50% of the appraised value of the property.

14.

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.

15. 

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 fees.

16. 

Timeline for making decision on  loan application

• 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.

17. 

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).