Real Estate Secured Loan
Loans secured by real estate, with or without income verification documents. A 6-month grace period for principal repayment will apply when transferring a loan secured by collateral from other banks or credit organizations in Armenia.
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Currency
Armenian dram
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Maximum Amount
100,000,000 AMD
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Maximum Term
180 months
The loan is provided at the bank's branches that conduct full financial operations.
Borrower/Guarantor* A citizen and resident of Armenia over 22 years old, whose age cannot exceed 55 years.
Loan Purpose Consumer purposes.
Loan Amount** 1,500,000 - 80,000,000 AMD.
Loan Term 36 - 180 months.
Interest Rate*** 36-60 months — 15%, 61-96 months — 16%, 97-120 months — 17%, 121-180 months — 17% (fixed/variable) (actual: 16.09% – 21.32%).
Maximum Loan-to-Value Ratio (LTV)/Type of Collateral**** Real estate (apartment, residential house, public space excluding production facilities, land plot) assessed at liquid value. If the real estate is located in Yerevan, the maximum loan-to-value ratio is set at 80%, for real estate outside Yerevan it is 70%, and for land plots, it is 40%.
Loan Provision Method Cash.
Repayment of Loan and Interest Monthly, equal amortization or annuity payment (in the case of annuity payment — non-revolving credit line), and for the transfer of obligations secured by collateral from other banks, a grace period of 3 months for principal repayment may be granted upon customer request.
Application Review Fee 5,000 AMD.
Loan Package Preparation and Service Fee (one-time) 0.8% of the loan amount, minimum 25,000 AMD, maximum 300,000 AMD.
Late Payment Interest/Penalty on Credit Line 0.13% per day.
Early Repayment of Loan No penalties apply.
Creditworthiness Assessment The total repayment/income ratio must not exceed 50% (monthly payments on all credit obligations of the borrower and guarantor, excluding payments on guarantees provided by them, relative to the income of the borrower and guarantor).
The taxable income is considered, excluding salary, for which non-taxable income is used.
*The presence of a guarantor is not mandatory if the income presented by the borrower meets the requirements for creditworthiness assessment.
**Deviations from the minimum loan amount may occur in cases where financing is carried out within the framework of the existing main loan agreement.
***Fixed rate — up to 60 months — 17%, and from the 61st month, the fixed interest rate is adjusted based on the average interest rates on deposits attracted by banks in Armenia for a term of up to 1 year (excluding demand deposits) and will be 9% (hereinafter referred to as the Main Indicator).
****The collateral must be assessed by one of the independent appraisal companies cooperating with the bank.
