Loans for EE renovation of apartments and individual dwellings

1.

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.

2. 

Loan currency

AMD

3. 

Loan amount

Renovation of apartment in multi-apartment building

3,000,000.00 - 7,000,000.00

Renovation of single-family home

3,000,000.00 - 10,000,000.00

4.

Loan repayment period

60-84 months

5. 

Nominal interest rate per annum

Fixed rate

Subsidy

14 %

The subsidized interest rate for the beneficiaries of state support program will be based on the following criteria:

1. for property in border or mountainous settlements, subsidized interest rate will be 14%,
2. for property in non-border rural settlements, subsidized interest rate will be 12%;
3. for property in non-border urban settlements, subsidized interest rate will be 11%;
4. for property in Yerevan, subsidized interest rate will be 9%.

6.

Loan-to-Income ratio (OTI)

45%

7. 

Prepayment penalty

Not applicable

8. 

Penalty for late payment of interest and principal amount

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

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

9. 

Loan security

If the borrower has no property-backed loan with the Bank

AMD 3,000,000 – AMD 5,000,000

1. Without pledging real property

2. Surety bond of at least 1 individual

AMD 5,000,001 – AMD 10,000,000

1. Pledging the property under renovation

2. Surety bond of at least 1 individual

If the borrower has a property-backed loan with the Bank

AMD 3,000,000 –  AMD 7,000,000

1. Without pledging real property

2. Surety bond of at least 1 individual

AMD 7,000,001 – AMD 10,000,000

1. Pledging the property under renovation

2. Surety bond, whenever required

10. 

Loan-to-value ratio

Up to 70% of the real property appraised value.

11. 

Loan disbursement method

Non-cash

12. 

Bank’s fees

Not applicable

13. 

Insurance

1. Insurance of the pledged real property covering at least the loan amount.
2. Borrowers’ life insurance to cover at least the loan amount.
3. In case of acquisition of solar panels: insurance of solar panels to cover the cost of solar panel purchasing.

14. 

Other provisions

At least 30% of the loan amount must be used for energy-efficient improvement of the home/apartment and replacement of old household appliances with new ones. The share of household appliances cannot exceed 10% of the total loan amount.

• Under the Program, the renovation loan estimate should be prepared using the energy efficiency assessment tool.

For the past 12 months the number of days past due should not exceed 30.

• The Program will subsidize the interest rate of only a single loan for the given apartment/house.

15. 

Timeline for making decision on  loan application approval or rejection

• The decision on the loan will be made through Mulberry software,  as specified under the Credit Committee Regulations.
• The loan will be provided within 2 (two) business days after the approval of the loan application and completion of property pledging procedure.