Loans provided under the state support program for energy-efficient renovation of apartments and individual dwellings

Eligibility

RA citizens aged 18-63 who during the debt service period will not reach the age of 63, otherwise the potential borrower needs a co-borrower to qualify for the loan.

Loan currency

AMD

Loan amount

Renovation of an apartment in  multi-apartment building

AMD 70,000 per 1m², but not more than AMD 7,000,000

Renovation of single-family homes

AMD 100,000 per 1m², but not more than AMD 10,000,000.00

Loan repayment period

60-84 months

Interest rate

Nominal

12% (fixed)

Actual

12.69% - 12.85%

Procedure of subsidizing the interest rate

The interest rate for energy-efficient renovation loan supported by the government will be subsidized in the following way:

1. subsidizing the interest rates of the loans designated for renovation  of real property in bordering or mountainous areas will be carried out in the amounts to ensure that the beneficiaries get the loans at 0%.
2. subsidizing the interest rates of the loans designated for renovation of real property in non-bordering rural areas will be carried out in the amounts to ensure that beneficiaries get the loans at 2%.
3. subsidizing the interest rates of the loans designated for renovation of real property in non-bordering urban areas will be carried out in the amounts to ensure that beneficiaries get the loans at 3%.
4. subsidizing the interest rates of the loans designated for renovation of real property in Yerevan city will be carried out in the amounts to ensure that beneficiaries get the loans at 5%.

Penalty for loan prepayment

Not applied.

Penalty for overdue loan principal and interest

For overdue principal - 0.015% per day,

For overdue interest - 0.1% per day.

Loan security

For loans ranging from AMD 3 million to AMD 5 million,  no collateral backing, but a surety bond of at least a single individual will be required (if the Borrower has no property-backed loan borrowed from the Bank),

For loans ranging from AMD 3 million to AMD 7 million, with no collateral backing – a surety of at least a single individual will be required (if the borrower has a property-secured loan obtained from the Bank).

For loans ranging from AMD 7 million to AMD 10 million - secured by the real estate to be renovated.

Surety bond issued by an individual or a legal entity (if appropriate).

Loan-to-Value ratio

Up to 70% of the appraised value of the real estate.

Loan disbursement method

Non-cash

Charged fees

No fees will be applied by the Bank.

Other terms and conditions

1. At least 30% of the loan proceeds should be used for enhancement of energy-efficiency of the single-family home/apartment for replacement of old (purchase of new) household appliances. The share of household appliances should not exceed 10% of the total loan amount.
2. Under the renovation loan program, the estimate of costs should be computed using the energy-efficiency assessment tool.
   The number of days the Borrower’s/Co-borrower’s loans remained overdue during the past 12 months should not exceed 30.
3. Under the state program, the interest rate of only a single loan (for apartment or single-family home) may be subsidized.

Timeframe for making decisions on approving or rejecting the loan application

The loan will be provided to the Borrower in case of the Bank’s positive decision within 2 (two) business days upon completion of the pledging process.