Aimed Purpose

For refinancing existing mortgage loans in other banks or credit organizations.

The maximum loan amount must not exceed the sum of the remaining balance of the loan being refinanced and the current interest amount.

Borrower requirements

1. Individual, resident of the Republic of Armenia
2. At least 6 months of positive mortgage loan history
3. No negative credit history (according to the Bank’s Credit Policy)
4. Based on income analysis, the maximum OTI (ratio of income to loan-related expenses) shall comply with the Credit Policy. For loans up to 40,000,000 AMD, if the borrower has maintained the loan for 18 months or more, income analysis is not required.

Loan Terms

Non-cash

Minimum amount

5,000,000 AMD

Maximum amount

100,000,000 AMD

Currency

AMD

Loan Term

60-240 months

Annual percentage rate

11.95% (fixed for the first 36 months; from the 37th month – CIR + 4.5%)

Effective Annual Rate

12.93%-13.21%

Loan Repayment

Principal: monthly equal installments or annuity payments

Interest: monthly

Early repayment: allowed without restrictions

The pledged property is evaluated and insured by one of the companies cooperating with the Bank (the list).

The price range for ancillary services is as follows:

●     Property valuation – AMD 15,000

●     Property insurance – 0.25% of the appraised value or outstanding loan balance

●     Personal insurance – 0.17% of the outstanding loan balance

Other expenses*:

●     Notary service fee – AMD 15,000–20,000, including marital consent agreements

●     Unified certificate on restrictions – AMD 11,500

●     State registration fee of property – AMD 54,500–72,500

*Not included in the actual interest rate calculation.

Loan-to-value ratio

Maximum 70%

Insurance

Property

Mandatory

Personal (from accidents)

At the customer's request

Commision

Loan application review fee – as per the Bank’s tariffs

Overdue loan

In case of delay of two or more consecutive working days – a one-time penalty of 2% of the overdue amount.

Overdue interest

In case of delay of two or more consecutive working days – a one-time penalty of 2% of the overdue interest amount.

Collateral requirements

In accordance with the Bank’s Credit Policy.

Territory

In accordance with the Bank’s Credit Policy.

Необходимые документы

1. Application (in the prescribed form)
2. Passports and social cards of family members (copies)
3. Passports of all property owners (copies)
4. Ownership certificate of the pledged property and  the basis of origin (copies)
5. Documents confirming income

If necessary

Third-party guarantee (documents confirming the guarantor’s identity and solvency – financial statements, etc.)

Other documents (e.g., documents confirming other property ownership of the buyer, etc.)

Maximum period for decision-making on the loan application

3 working days

The Bank informs the customer of its decision within 1 working day.

Loan disbursement period

Within 1 working day after state registration of the pledge right.

There are no other conditions restricting loan availability for the consumer. Loan formalization is carried out at the Bank.

Positive factors for providing a loan: the client’s creditworthiness, positive credit history, quality of collateral, etc.

Grounds for loan rejection include low creditworthiness indicators, negative credit history, incomplete or unreliable information or documentation provision, reputation, client’s age, health and social condition.

Before concluding a loan agreement, the bank provides an Individual Sheet in accordance with Regulation 8/05 “Procedure, conditions, methods and minimum requirements for mutual communication between the bank and the depositor, creditor and consumer” approved by the Council of the Central Bank of the Republic of Armenia.

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