Hot Line +37410 511 211

For Armenian Resident

For RA resident citizens

The loan is provided to RA resident citizens for acquisition, renovation, and construction of an apartment

1. Loan for acquisition of residential property

Acquisition of residential property under construction or already existing, for residential purposes (residential property under construction (an apartment in a tenement building).
The borrower/co-borrowers shall be a citizen/citizens of the Republic of Armenia (with registration address in the Republic of Armenia), with the principal source of income located in the RA.

Currency
AMD
Maximum loan amount Maximum loan amount/contractual loan amount/ AMD 25 mln
Loan maturity Minimum 15 years, maximum 20 years
Interest rate 12%
Loan disbursement one-off fee, charged before disbursement of the loan 0.5% of the loan amount, but not less than AMD 50.000
Monthly service fee No service fee 
Fee for review of the loan application AMD 3,000, is charged once, at the time of recording the loan application

 General provisions and conditions

 Procedure of repayment of the loan and interest amount

The loan and interest amounts are repaid monthly, in one of the following manners:

  •  Annuity (equal monthly instalments), which includes the principal amount and accrued interests with alternating portions;
  •  Spring-like (variable monthly instalments), which includes the principal amount in equal portions, and the accrued interest - in variable portions.

Collateral

  • In case of a loan to be provided for acquisition of existing residential property - the residential property to be acquired.
  • In case of a loan to be provided for acquisition of residential property under construction (an apartment in a tenement building), the security for the loan is the residential property under construction or some other residential property*.
  • The real estate should be primary collateral.

Loan/Collateral (LTV)

  • The amount of the loan cannot exceed 70% of the appraised market value or the purchase value, whichever is the smallest.
  •  In case of loans to be provided for acquisition of existing residential property, if, besides the apartment to be acquired, some other existing residential property is also pledged, then the minimum prepayment can be 10 percent. The loan/collateral ratio is calculated on the basis of the total sum of the two pledged residential properties (70%) and the loan amount cannot exceed 90% of the appraised market value or the purchase value of the residential property to be acquired, whichever is the smallest.

Ratio of the total obligations to total income (OTI)

Up to 45%

Data regarding the credit history

  • Inquiry to ACRA credit bureau (LLC 3)
  • If the borrower has outstanding loan/loans, then it shall be classified as a standard loan, according to the regulation approved jointly by the CBA and the MFE of the RA, and there shall be no overdue current liabilities related to the loan/loans
  • The total number of the overdue days for all loans /outstanding and repaid/ during the last twelve months doesn’t exceed 30 calendar days

Penalty

In case of violation of the repayment terms specified by the agreement, the Borrower pays penalty to the Bank at the rate of 0.13% of the overdue amount for each day of delay.

Insurance

Insurance of the pledged real estate, as well as the borrower and co-borrowers from death through accidents (proportionate to income) is done annually, for the balance amount of the loan.

Other provisions

*Loans provided for acquisition of residential property under construction (an apartment in a tenement building under construction): in case of provision of a loan for acquisition of residential property on the stage of construction (unfinished), the loan for acquisition of residential property under construction (an apartment in a tenement building under construction) is secured by pledge of the residential property under construction or some other existing residential property. The maximum amount of the loan shall not exceed the difference between the price of the residential property specified in the agreement signed between the borrower and the constructor of the residential property and the amount already paid to the constructor /the minimum prepayment is 10%.
The borrower applying for a loan for acquisition of residential property under construction shall provide the agreement signed between the borrower and the constructor, as well as the documents evidencing the payments made before the date of applying for the loan.
The Bank can transfer the loan amount either directly to the constructor, or to the borrower. If the loan is disbursed to the borrower, then the borrower shall provide evidence that he/she has transferred the whole loan amount to the constructor.
If, based on agreement between the parties, the loan is disbursed in tranches, the period of submission for refinancing is calculated starting from the date of disbursement of the last tranche.
The loan can be submitted to the NMC for refinancing maximum within 270 days after disbursement of the last tranche; at the time of submission for refinancing, the loan shall meet the following conditions simultaneously:

  • The mortgage loan is secured with pledged on the acquired apartment /there shall be an ownership certificate for the apartment with 100% degree of completion/;
  • The acquired apartment shall be appraised by an independent appraising company;
  • The acquired apartment shall be secured for the balance amount of the loan;
  • The loan/collateral ratio shall not exceed 70%.

Other requirements

  • Such mortgage loans shall be submitted, in case of which:

-the seller and the buyer are not members of the same family (according to the RA Law on"Banks and Banking");
-the loans meet the requirements of the legislation on preventing money laundering and financing of terrorism;
- target usage of the loan shall be observed during the whole maturity period of the loan.

  •  The rest of the conditions - according to the NMC’s "Regulation on Refinancing of Mortgage Loans".

2. Loan for Residential Property Renovation

Residential property renovation, improvement of housing conditions

The borrower/co-borrowers shall be a citizen/citizens of the Republic of Armenia (with registration address in the Republic of Armenia), with the principal source of income located in the RA.

Currency
AMD
Maximum loan amount Maximum loan amount/contractual loan amount/ AMD 25 mln
Loan maturity Minimum 15 years, maximum 20 years
Interest rate 12%
Loan disbursement one-off fee, charged before disbursement of the loan 0.5% of the loan amount, but not less than AMD 50.000
Monthly service fee No service fee 
Fee for review of the loan application AMD 3,000, is charged once, at the time of recording the loan application 

 General provisions and conditions

 Procedure of repayment of the loan and interest amount

The loan and interest amounts are repaid monthly, in one of the following manners:

  •  Annuity (equal monthly instalments), which includes the principal amount and accrued interests with alternating portions;
  •  Spring-like (variable monthly instalments), which includes the principal amount in equal portions, and the accrued interest - in variable portions.

Collateral

  • Real estate under renovation, which should be primary collateral

Loan/Collateral (LTV)

  • The amount of the loan cannot exceed 70% of the appraised market value.

Ratio of the total obligations to total income (OTI)

Up to 45%

Data regarding the credit history

  • Inquiry to ACRA credit bureau (LLC 3)
  • If the borrower has outstanding loan/loans, then it shall be classified as a standard loan, according to the regulation approved jointly by the CBA and the MFE of the RA, and there shall be no overdue current liabilities related to the loan/loans
  • The total number of the overdue days for all loans /outstanding and repaid/ during the last twelve months doesn’t exceed 30 calendar days

Penalty

In case of violation of the repayment terms specified by the agreement, the Borrower pays penalty to the Bank at the rate of 0.13% of the overdue amount for each day of delay.

Insurance

Insurance of the pledged real estate, as well as the borrower and co-borrowers from death through accidents (proportionate to income) is done annually, for the balance amount of the loan.

Other provisions

The loan can be disbursed in 2 ways:

  •  Improvement works - The improvement works shall increase suitability of the apartment/real estate for residential purposes or enhance efficiency of its usage. The improvement works include both renovation of the whole apartment/dwelling house, and its separate parts (e.g. renovation of the bathroom, kitchen, water and electricity supply systems, installation or upgrade of the public water supply, heating, or ventilation systems, usage of insulation materials, installation of hermetic and heat-insulating windows, enhancement of seismic resistance, which includes, but is not limited to, reinforcement of the foundation and metal structure, and/or repair of damages). The improvement works cannot include manufacturing of built-in closets, purchase of home appliances or luxury items.

The improvement works shall be fully completed 1 year after disbursement of the loan. In case of disbursing the loan in tranches, the 1 year period is calculated starting from the date of disbursement of the last tranche.

  •  Enlargement of the living area - enlargement of the living area can be achieved in form of by means of modifying the internal area of the apartment, or constructing new rooms or floors beyond the area of the apartment. If permission of the respective state bodies is required for this, then such permission shall be enclosed in the loan case.

The Borrower, together with a construction consultant or contractor (if any) prepares the cost estimate for the works to be conducted and submits it to the FA. The relevant photos, drawings, and technical peculiarities, comprehensive description of the planned works, as well as the staring and completion dates of the works shall be attached to the cost estimate. The borrower shall submit also the value of the respective expenses and other data, so that the FA can fully assess the volume, quality, and cost of the renovation works.

Photos of the renovated property shall be provided, both before renovation, and after disbursement of each tranche (in order to have a full view).

Other requirements

According to the NMC’s "Regulation on Refinancing of Mortgage Loans".

3. Loan for construction of residential/dwelling houses

Construction of residential/dwelling houses

The borrower/co-borrowers shall be a citizen/citizens of the Republic of Armenia (with registration address in the Republic of Armenia), with the principal source of income located in the RA.

Currency
AMD
Maximum loan amount Maximum loan amount/contractual loan amount/ AMD 25 mln
Loan maturity Minimum 15 years, maximum 20 years
Interest rate 12%
Loan disbursement one-off fee, charged before disbursement of the loan 0.5% of the loan amount, but not less than AMD 50.000
Monthly service fee No service fee 
Fee for review of the loan application AMD 3,000, is charged once, at the time of recording the loan application 

 General provisions and conditions

 Procedure of repayment of the loan and interest amount

The loan and interest amounts are repaid monthly, in one of the following manners:

  •  Annuity (equal monthly instalments), which includes the principal amount and accrued interests with alternating portions;
  •  Spring-like (variable monthly instalments), which includes the principal amount in equal portions, and the accrued interest - in variable portions.

Collateral

  • In case of loans provided for construction of residential/dwelling houses, besides the land plot, on which the residential house is to be constructed, other existing residential property should also be pledged. The real estate and the land plot should be primary collateral.

Loan/Collateral (LTV)

  • The amount of the loan cannot exceed 70% of the total (appraised market) value of the pledged real estate (the land plot, on which the residential house is to be constructed, and the residential property pledged as additional security.

Ratio of the total obligations to total income (OTI)

Up to 45%

Data regarding the credit history

  • Inquiry to ACRA credit bureau (LLC 3)
  • If the borrower has outstanding loan/loans, then it shall be classified as a standard loan, according to the regulation approved jointly by the CBA and the MFE of the RA, and there shall be no overdue current liabilities related to the loan/loans
  • The total number of the overdue days for all loans /outstanding and repaid/ during the last twelve months doesn’t exceed 30 calendar days

Penalty

In case of violation of the repayment terms specified by the agreement, the Borrower pays penalty to the Bank at the rate of 0.13% of the overdue amount for each day of delay.

Insurance

Insurance of the pledged real estate, as well as the borrower and co-borrowers from death through accidents (proportionate to income) is done annually, for the balance amount of the loan.

Other provisions

  •  In case of disbursement of loans for the purpose of construction of residential/dwelling houses, the maximum loan amount shall not exceed 80 percent of the cost estimate of the construction works submitted by the customer. Construction loans shall be provided in tranches; the last tranche of the loan shall finance the last stage of the construction works and shall not exceed 20 percent of the loan amount.
  • Besides other specified documents, the borrower applying for a loan for construction of residential/dwelling houses shall submit to the FA the construction design approved in compliance with the construction law, the construction permit, the agreement signed between the borrower and the constructor (if any), the documents evidencing the payments already made (if any), the cost estimate for the construction works, as well as other documents, if necessary.
  • The FA and the borrower together prepare the schedule of disbursement and usage of the loan, where they specify the works to be conducted with each tranche of the loan (as well as with the borrower’s own funds). Before disbursement of each tranche of the loan, the respective employee of the Bank shall check actual performance of the works specified by the schedule. The results of the check-up shall be documented and enclosed in the loan case together with the photographs of the performed works
  • If the construction works are to be performed by the constructor, then the Bank can transfer the loan amount directly to the constructor’s account. If the loan is disbursed to the borrower, then, at the time of submission of the loan to the NMC for refinancing, the Bank shall provide the company with evidence that the borrower has transferred the whole loan amount to the constructor. 

Other requirements

  • The renovation works shall be fully completed 1 year after disbursement of the last tranche of the loan.
  • The rest of the conditions - According to the NMC’s "Regulation on Refinancing of Mortgage Loans".