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"Artsakh" loans

"Artsakh" loans

The loan refinanced (hereinafter referred to as the Loan) by the Artsakh Investment Fund (hereinafter referred to as the Fund) is provided by Converse Bank CJSC (hereinafter referred to as the Bank) in Stepanakert Branch, for purchase, renovation and construction of an apartment, residential house in the city of Stepanakert.


Persons defined by the Decree of Government of the Republic of Artsakh 24-N dated 1 February 2019 "Procedure of providing State financial assistance to the Artsakh citizens for improving housing conditions by means of mortgage lending" (hereinafter - Procedure).

Term of Loan

Acquisition / construction:

5 - 15 years


1 - 10 years

Loan currency


Loan amount:

Acquisition / construction:

1,000,000 - 50,000,000 AMD or equivalent USD


1,000,000 - 7,000,000 AMD or equivalent USD

Loan annual nominal interest rate



US dollars։



The interest is subject to subsidizing by the Fund

The amount of the subsidy and the conditions of provision are defined by the Procedure

Loan annual actual interest rate*

Acquisition / construction: AMD 16.27 - 19.59%, USD 12.8 - 14.12%

Renovation: AMD 16.99 - 20.47%, USD 13.03 - 14.89%

Maximum loan/collateral ratio

70% of the estimated market value (in case of acquisition - the lower of estimated market value and acquisition value)

Methods of repayment

"Spring" (decreasing monthly repayment), in which the principal amount is included in equal portions, and accumulated interest is variable.

In case of full subsidization of loan interest by AIF, spring form of loan repayment is established

Annuity (Equal monthly repayment), with principal and interest accrued in variable portions.

This method can be chosen if the loan vs market value or realizable value (depending on the purpose of the loan) of collateral does not exceed 50%.

* The effective interest rate covers only payments defined by the Bank, such as loan application review, loan provision and service charges. And the actual annual interest rate, in addition to the fees specified by the Bank, includes other fees required to obtain the loan: collateral valuation, single statement, notary charges and pledge registration fees.
Upon purchase, notarization, registration and unified reference fees are not included in the actual annual interest rate calculation, as the customer is required to make these payments regardless of whether the purchase is by means of loan or without loan (cash price).

General provisions and conditions

Payment list

One-time fee for application review


One-time fee for loan disbursement

0.5% of loan amount (charged prior to the loan disbursement)

Monthly loan service fee

for loans in AMD - 2,000 AMD

For loans in USD - 0 AMD

 Pledge costs

Costs for collateral valuation

Apartment - 8,000 AMD

Private house - 10,000 AMD

Notary validation

5,000 AMD

Registration of the right of pledge in the Real Estate Cadastre Department of the Government of the Republic of Artsakh

30,000 AMD

Single reference

10,000 AMD 

Consideration time

At least 7 days prior to the conclusion of the loan agreement, the Bank will provide you by hand or by mail a loan agreement proposal and a draft loan agreement. The proposal to conclude a loan agreement is valid for 7 business days from the day following the date of its submission to the borrower.

Early repayment of the loan

The borrower has the right to repay the loan in whole or in part in advance, including through refinancing.
In case of early repayment of the loan amount or part of it, the Bank will reduce the total cost of lending, including the total interest payable under the loan agreement and service charges.
At the borrower's discretion, the Bank will reduce the amount of monthly payments in proportion to the amount repaid in advance, leaving the loan repayment period unchanged, or reduce the loan repayment period, leaving the amount of monthly payments unchanged.

Fines and penalties

In case of breach of the repayment terms stipulated in the contract, the Borrower shall pay a fine to the Bank at the rate of 0.13% for each day of default.
Repayments of overdue liabilities are repaid in the following order: fine/penalty, interest, service fee, principal amount.
No fines or penalties are envsiaged for early repayment of the loan.

Terms and Conditions:

1. OTI ≤ 50%
OTI - At the time of the loan disbursement, the ratio of the monthly repayments of principal and interest on all existing loans and accumulated interest rates o the net monthly income of the borrower, other members of the latter's household, and co-borrowers if any.
2. Income calculation may include incomes of other persons as well. In this case these persons are considered as co-borrowers.
3. The borrower who has acquired an apartment / residential house is obliged to ensure within a period of three months (in case of construction - after the end of designated construction commissioning period) the registration in the purchased apartment or residential house of the persons who along with the borrower have received state financial assistance.
4. Within one year from the moment of registration of ownership of the newly acquired residential area (in case of construction, after the expiration of the construction commissioning period) the Beneficiary and the co-beneficiaries who have received assistance shall be obliged to sell the residential area in possession prior to the receipt of state assistance, at a price no less than the liquidation price effective by that time, and to direct the entire amount received as a result of the transaction to repay the obligation.
5. At the time of applying for a loan, the sum of the borrower's age and loan term should not exceed 65.
6. Only to real estate located within the administrative boundaries of Stepanakert or Shushi is subject to mortgage
7. During the whole period of the loan, the designated use of the loan should be maintained.
8. In case of acquisition loan, the seller and the purchaser may not be members of the same family.
9. In case of renovation/construction loans renovation /construction works should be fully completed within one year after the last installment of the loan has been disbursed.
10. In case of a renovation loan, the apartment / private house owned by the borrower is repaired/renovated.
11. In the case of a construction loan, the purpose of the loan is subject to monitoring from the 6th month following the disbursement of the loan, with a periodicity of at least once per two months, until the final completion of the construction work. Within 12 months after the date of receipt of the loan the borrower should submit to the Bank the assessment act of the building under construction performed by one of the assessing organizations cooperating with the bank.

Borrower's (if available, co-borrower's)

Credit history requirements

·         (a) There shall be no overdue loan obligations (including guarantees) at the time of applying for the loan, as well as current guarantees classified at a stricter than "standard" grade

· (b) During the year preceding the day of applying for the loan, there should not be any credit classified at a stricter than "standard" grade

· c) No more than 30 days of total overdue days on loan shall be recorded in the year preceding the day of applying for the loan

conditions b) and c) the do not apply to guarantees


The Fund shall provide to the beneficiaries who meet  the requirements of the Regulation a part of the advance payment required by the Bank to purchase an apartment by mortgage loan, in accordance with the terms of the free or targeted interest-free borrowing.

The Fund provides the prepayment by means of targeted interest-free borrowing to the beneficiary by concluding a contract, which should be secured by a written agreement  on consecutive pledge of the purchased property, concluded upon the written consent of the Bank.

The prepayment provided by the interest-free borrowing is subject to repayment by the beneficiary within the repayment period and by the periodicity stipulated for the mortgage loan. In case of early repayment of the loan, the beneficiary is obliged to proportionally repay the amount of interest-free borrowing within the next five years.

In case of termination of the borrower's loan agreement, the Bank may independently sell the pledged property on the condition of immediate repayment of the amount provided by the Fund for the prepayment in the form of a a targeted interest-free borrowing.

As a result of the ongoing study of the beneficiary's financial solvency, the Fund may set a condition for earlier repayment of the partially reimbursed amount of the prepayment received in the form of a targeted interest-free borrowing. In that case, the annual amount of repayment of the targeted interest-free borrowing cannot exceed 50% of the annual loan repayment amount.

Loan provision

  1. Mortgage on acquired, renovated or constructed real estate. In the case of building a residential house, the land plot on which a residential house is built and additional real estate are pledged as collateral
  2. Guarantee

Any individual(s) who have stable and substantiated income and/or are owner(s) of any immovable
property may act as guarantor


  • Should not to have problematic (including overdue) loan commitments at the moment of applying for a loan, and
  • Should not have in summary 30 days and more of overdue loan commitments (including all loans and guarantees) over the past one year
  • Cannot simultaneously act as a co-borrower for the particular loan.
Explanatory information on the guarantee

If the borrower fails to fulfill his/her obligations, the guarantor will pay on behalf of the borrower, the guarantor's credit history will deteriorate as well, and the guarantor may be deprived of his/her property.

Converse Bank:

  • Will provide the guarantor with an example of loan and guarantee agreements and a repayment schedule,
  • The communication will be carried out in the manner chosen by the guarantor,
  • notify at least 7 days in advance of the change in the terms of the contract,
  • Will send reminder of existing obligation 1 day in advance
  • In case of delayed repayment of the loan, will notify the guarantor not later than within the following day.

The guarantor has the right to:

  • At any time request the Bank for information on the size of the loan balance,
  • get a refund of loan-related payments made, as well as of other losses incurred on behalf of the borrower.

Example of calculating interest rates

In case of loan with the following terms and conditions:

Loan amount:

20,000 USD

Nominal interest rate

11.5% (subsidized)

Repayment period

10 years

Repayment type


Interest composition

Monthly repayment (principal amount+ interest)


Total interest


Total of repayments


 Loan interest is calculated based on the nominal interest rate applied to the deductible balance, and the actual annual interest rate shows how much the loan will cost you when you make timely interest payments and all the related mandatory fees and payments related to loan disbursement.

Valuation of collateral

The pledged real estate is subject to appraisal by one of the evaluation companies cooperating with the Bank. The evaluation company is selected by the Customer. The evaluation report is usually valid within 2 (two) months from the date of the report. An additional re-evaluation may be required if necessary (eg price changes).

List of valuation companies

Communication with the Bank

You have the right to communicate with Converse Bank CJSC in any format at your discretion - by postal mail or by electronic communication methods. It is most convenient to receive information electronically, as it is available 24/7, free from the risk of loss of paper-based information and ensures confidentiality.

Provision of statements, references and other information (including VAT)

  • Provision of statement with periodicity prescribed by RA legislation (once): 0,
  • Provision of additional statement 1 Except for periodicity prescribed by RA legislation:

- dating back up to 3 years - AMD 1,000
- Dated back to 3 years and more (in case it is available in the bank ) - AMD 3,000

  • Statement1 for submitting to different institutions

- In case of accounts opened within a month 2 AMD 5,000
- In case of accounts opened earlier - AMD 3,000

  • Reference to be provided to the RA State Revenue Committee on paid amount of interest: AMD 1,000
  • Reference based on the application submitted through the Bank's website - 3,000 AMD
  • References / Letters

 On transactions made
- For transactions dated back up to one month - AMD 3,000
- For transactions dated back more than one month - AMD 5,000
 Notice of agreement on consecutive pledge/alienation of property pledged in the Bank - AMD 6,000 for each pledged property

  • Transaction support documents and copies of other documents (for each document)

- Dated back up to 1 month - AMD 1,800
- Dated back up to 1 year - AMD 3,000
- Dated back more than one year - AMD 12,000

Tariffs for other services (including VAT)

  • Mail delivery of statements or other documents

 In the Republic of Armenia and Artsakh - 0
 International
- Tariff set by the shipping service provider, if established by law and contract.
- In other cases, the fee set by the shipment service provider + AMD 1,500

  • Delivery of references or other documents via Ordered mail shipping

- Within Armenia and Artsakh- AMD 3,000
- International - fee set by the shipment service provider + AMD 3,000

  • Provision of Bank consent for registration of family members at the address of pledged real estate (regardless of number of registered persons) - AMD 3,000
  • Granting consent for modification of documents on real estate property pledged with the Bank3: 0.5%, minimum AMD 12,000 , maximum AMD 60,000
  • Partial release of pledged property based on the application of the pledgor or the borrower (except for the pledge of cash as well as unallocated metal accounts) - AMD 20,000 (per property)
  • Loan terms revision4 - 0.5%, minimum AMD 12,000

1 In case of simultaneous provision of a statement and reference to the same Customer and charge envisaged for the reference, the charge will be collected for reference only.
2 In case of more than one active account, the opening date of account which has been opened earlier is taken into consideration irrespective of whether or not included in the statement.
3 The tariff shall be calculated on the basis of the estimated initial value of the collateral.
4 The tariff is calculated based on the amount of loan provided. The tariffs are set at the time of submission of the application by the customer for revision of the loan terms.

List of required documents

Preliminary documents submitted to the Bank for review of the loan application:


Borrower /co-borrower identification document and Public Service Number or statements on not having received a PSN (not required if identification card is presented) and child birth certificates (if available and, if necessary)


Certificate of marriage (divorce, death) of the borrower / co-borrower / family members (if available)


Certificate from the Condominium issued to the borrower / co-borrower from the place of residence, on the composition of the family; and a statement from passport division of the NKR Police on the persons registered on the residential area of the borrower / 3rd form (if necessary)


Income statement from employer with indication of the borrower / co-borrower's position and monthly income (gross or net, in case net income is indicated, a corresponding note on that should be made), statement validity period should not exceed 15 days.


Ownership rights registration certificate for purchased/renovated/constructed/additionally pledged real estate, proof (grounds) of acquisition of ownership title, identification documents of the owners, marriage, divorce, birth, death certificate (if applicable).


Preliminary assessment report for acquired / renovated / constructed / additionally pledged real estate


Estimate (for renovation and construction).


Photos of the initial condition of the real estate renovated/under construction


A construction design approved by the procedure established by the legislation, a construction permit, a contract with a developer (if any)


Notice of annual interest rate subsidy or on subsidizing and prepayment of mortgage loan (provided by AIF)


Other documents at the request of the Bank

Documents submitted in case the loan application is satisfied


Letter of guarantee on annual interest rate subsidy or on subsidizing and prepayment of mortgage loan (provided by AIF)


Unified statement on restrictions on pledged property


Photos of renovated/constructed real estate (may be required after each installment is disbursed, as well as within the framework of current monitoring)


Other documents at the request of the Bank



If you fail to fulfill or incompletely fulfill your obligation,  within three business days this information will be provided to the credit bureau  where your credit history is formed. Having a bad credit history can negatively affect your creditworthiness in the future. You have the right to receive your credit history report for free once a year from the credit bureau.

Your property may be confiscated by law if you fail to make your interest and loan repayments on time.

In case of insufficient funds to repay your credit liabilities, they may be repaid at the expense of your other property and/or that of the guarantor, as prescribed by the RA legislation.

In accordance with the RA Law on Combating Money Laundering and Terrorist Financing, on the basis of the Know Your Customer Principle, the Bank may require the Customer to provide additional documents or other information, as well as ask questions during verbal communication, for the purpose of conducting due diligence of the Customer.  

The Bank may collect additional information in accordance with the terms of an agreement with the US Government under the Foreign Account Tax Compliance Act (FATCA) to determine your eligibility for being a US taxpayer.

The Bank is entitled to modify and supplement the tariffs for additional services provided by notifying the Customers in accordance with the contract, by posting a relevant message on its own website ( ), by posting announcements on the Bank's premises, by sending a notification by post, and by any other methods  proposed by the Bank selected at the Customer's preference, which is considered a due notification of the Customer.


Factors for positive or negative decision on providing the loan

The Bank is inclined to provide the loan if:

  • The applicant complies with the terms and limiting conditions of the loan.
  • At the request of the bank, the applicant secures its credit liabilities with collateral.
  • The applicant is recognized as creditworthy as a result of the assessment.
  • The documents and references submitted by the applicant are reliable and include all necessary information;
  • The applicant's credit history is either positive or missing.

Failure to comply with any of the above conditions, as well as other requirements of the Bank's internal regulations, may result in refusal to provide the loan.

Time periods for notifying the customer of the decision to provide the loan and for the loan disbursement.

The decision takes up to 7 banking days, the Customer is informed within one day, the loan is disbursed within 7 banking days.

Venue for loan formalities and method of disbursement

The loan is provided only in the "Stepanakert" branch of the Bank.
The loan amount can be transferred directly to the seller / developer account or provided to the borrower by way of depositing into the account. If it is provided to the borrower, the borrower must submit proof that the loan amount has been fully transferred to the seller / developer (not required in the event of development or repair by own resources).

Your financial directory

"Your financial directory" at , is an electronic system combining services offered to individuals that makes it easy to search, compare and find the most effective option for you.


Procedure for resolving disputes

Any disputes and disagreements between the Customer and the Bank shall be resolved first by mutual negotiation, and should the agreement not be reached by such methods, the disputes and disagreements shall be resolved in accordance with the procedure prescribed by the RA legislation both per court procedure, and through financial system obmudsman.

Notice on Financial System Mediator

Please be informed that according to the RA Law on Financial System Mediator, in case of property claims arising out of services rendered to you by Converse Bank CJSC, disputes and disagreements for not exceeding million AMD or equivalent foreign currency may be resolved through the Financial System Mediator.
According to an agreement between the Bank and the Office of the Financial System Mediator, the Bank waives the right to challenge the Financial System Mediator's decisions only in relation to property claims not exceeding 250,000 (two hundred and fifty thousand) AMD or equivalent currency, and on transaction amounts not exceeding 500,000 (five hundred thousand) AMD or equivalent foreign currency.

Address: 0010 Yerevan, Khorenatsi str. 15,
"Elite Plaza" business center, 7th floor 
Email: [email protected]
Telephone: (+37460) 70-11-11
Fax: (+37410) 58-24-21:

Contact with the Bank

For more details and more information you can:

  • visit the Bank's website at
  • visit the Bank's Customer Service at the Head Office or any branch
  • Call: 374 10 511211
  • Viber: 374 95 511211
  • Skype: conversebank-callcenter


Updated 30.07.2021 17:40