Hot Line +37410 511 211

Construction Loan

Construction Loan

The loan is provided by "Converse Bank" CJSC (hereinafter - the Bank) to RA citizens, resident and non-resident individuals for the purpose of construction of residential or non-residential real estate.

Terms of loan


AMD 3,000,000 - 100,000,000 or equivalent in foreign currency


36 - 240 months


Annual interest rates per currencies2






(FR4 + 2.33)%, currently - 13.05%

(FR+ 4.63)%, currently - 15.35%


13.95 - 17.87%

16.58 - 20.67%



(FR + 4.56)%, currently - 10.00%

(FR + 10.91)%, currently - 16.35%


10.55 - 14.25%

17.74 - 21.90%



(FR + 3.54)%, currently -7.50%


(FR + 10.29)%, currently - 14.25%


7.84 - 11.37%

15.31 - 19.32%


1 The loan is provided in AMD. Mortgage loans to non-residents also can be provided in foreign currency, if no RA resident co-borrower is involved.

2 Depending on the customer's creditworthiness, credit history and loan / collateral ratio.

3 The annual nominal interest rate set in the table is calculated on the basis of the current FR indicators at the time of loan approval and is fixed for the first 36 months, after which the interest rate becomes floating.

4 FR- Floating Rate is set twice a year by the Bank on the basis of the primary indicators, and in the event of unavailability of the latter - based on secondary indicators. In case of change, the interest rate of the existing agreements changes no sooner than one month after the borrower is notified.

ü  Key indicators:

-       In case of AMD, the yield curve of 180-day government bonds of the Republic of Armenia, published by the Central Bank of Armenia at 

-       In the case of USD, 6-month secured overnight fund rate in USD (CME Term SOFR 6 Month), which is published on the following link: Term SOFR - CME Group (either by the Bloomberg system: TSFR6M, or by the Reuters system: SR6M),

-       In the case of EUR, the 6-month EUROBOR benchmarks, published on the following link: 6 months Euribor rate ( (by either Bloomberg system: EUR006M, or Reuters system: EURIBOR6MD).

ü  Secondary indicators.

-       In the case of AMD, the weighted average interest rate of AMD deposits with a maturity of 91 - 180 days attracted from legal and individual persons by RA commercial banks as of the last available month,

-       In the case of US dollars, the 6-month maturity yield of the US Treasury bond yield curve,

-       In the case of the Euro, the 6-month interest rate of the German Euro bond yield curve.

In the case of transition from the key to the secondary indicator, the surcharge in the calculation of the financing rate is adjusted/clarified by the average of the differences in the interest rates of the key and secondary indicators over the last 3 years.

Provided that the key and secondary indicators become unavailable or their application becomes impossible, the last published indicator of the floating interest rate is taken as the basis for the next period and is fixed for the entire period of the loan, unless otherwise agreed between the Bank and the customer.

The specified Floating Rates are published on the Bank's official website at are available at the Bank's premises.

The Bank may change the floating interest rate of this loan not more than twice a year. The maximum threshold for the increase and decrease of the floating interest rate - the maximum amount of deviation from the provided nominal interest rate - is set at +/- 2.5 percentage points. Floating rates are rounded in favor of borrowers up to one decimal.

The FR values as of the date of Termsheet (Information bulletin) update is set as: AMD – 10.72%, USD – 5.44%, Euro – 3,96%.

5The actual annual interest rate, in addition to the fees specified by the Bank, includes other fees required for obtaining the loan: collateral valuation, single statement, notary charges and pledge registration fees.


 List of payments made by the customer


 Fee for loan application review

5,000 AMD (charged once when entering the loan application)

Fee for loan disbursement

0.5% of the loan amount, minimum AMD 50,000 (charged once before the loan is provided)

Collateral valuation costs (applicable to additional real estate mortgages and in case of repair loans)

AMD 18,000 - 25,000 (depending on the type)

Single reference

AMD 10,000

Notary validation

AMD 20,000

Registration of the right of pledge in the RA Cadastre Committee

AMD 27,000

 Tariffs for settlements accounts opened for the borrower in case of loan disbursement

In case of loans in AMD

For one settlement account in AMD



annual service


In case of foreign currency loans

For one settlement account in AMD and one in foreign currency ( depending on the loan currency)



annual service


Other terms in accordance with the provisions on opening and servicing of Bank accounts.

If the customer already has settlement accounts in the mentioned currencies, new accounts may not be opened, instead the terms of the existing ones will be edited accordingly.


A basic package of services offered to borrowers throughout the loan servicing period

Converse Mobile Application Service Fee


One-time fee for Visa Virtual card service


Monthly fee for automatic collection of utility bills from accounts


Visa Classic and Mastercard Standard card service

according to the Tariffs and rates of the Bank

At the customer's request, the Visa Classic or Mastercard Standard cards under the package can be provided with a credit limit without a grace period.

Limit amount

AMD 300,000

AMD 500,000

Annual interest rate


Mandatory terms and conditions

The limit is provided without an income analysis in the case of primary financing provided under the Primary Loan Agreement

The limit is provided with an income analysis in the case of primary financing provided regardless of the Primary Loan Agreement

Other terms in accordance with the provisions of particular bank services


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. Fee for loan application review, state fees (notary, pledge registration, etc.) and pledge valuation fees are not subject to reduction / refund.
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 agreement, the Borrower shall pay a fine to the Bank at the rate of 0.13% of the overdue amount for each day of default.
Repayments of overdue liabilities are repaid in the following order: fine/penalty, interest, principal amount.
• In case of early loan repayment, the borrower pays a fine to the Bank.
- 0.6% of the early repayment amount of the loan, if the early repayment takes place during the first year of the loan agreement,
- 0.4% of the early repayment amount of the loan, if the early repayment takes place during the second year of the loan agreement,
- 0.2% of the early repayment amount of the loan, if the early repayment takes place during the third year of the loan agreement.
No penalty is envisaged for early repayment of the loan for the remaining period of the loan agreement.

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.

Frequency and method of loan repayment
• "Annuity" (Equal monthly repayment), with principal and interest accrued in variable portions.
• "Spring" (decreasing monthly repayment), in which the principal amount is included in equal portions, and accumulated interest is variable.

Collateral security
1. Pledge of the real estate under construction
2. Pledge of other/additional residential real estate
3. A guarantor or a co-borrower.

Loan to value ratio/LTV
• Up to 70% of the assessed market value of the collateral.
• In case of additional real estate collateral, up to 70% of the total market value of the collateral.

Requirements to the Guarantor
Legal entities and individuals may act as guarantors.
• must have a stable proven income or ownership/co-ownership for immovable and/or movable property;
• at the time of loan disbursement may have a maximum of 3 current guarantees against liabilities of other persons whose liabilities are not overdue;
• should not have problem loans (non-performing loans) at the time of loan disbursement, nor overdue liabilities of 30 days or more during the last 12 months;

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 agreement,
• 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 amount of the loan balance,
• get a refund of loan-related payments made, as well as of other losses incurred on behalf of the borrower.

1. A member of the borrower's family can act as a co-borrower/guarantor, the conditions and requirements imposed on the borrower also apply to co-borrowers.
2. PTI ≤ 60%:

PTI - The ratio of the maximum amount of monthly repayments of loan principal, interest, service and insurance premiums (if any) as defined by the repayment schedule to the total net monthly income of the borrower/co-borrower.
3. In case of a loan in the amount of AMD 25,000,000 and more or equivalent foreign currency - OTI ≤ (PTI + 10%).

OTI - The ratio of the total of maximum amount of monthly repayments of loan principal, interest, service and insurance premiums (if any) on the loan and on all other loans in the name of the borrower/co-borrowers, as defined by the repayment schedule, to the total net monthly income of the the same persons.

4. A Primary Loan Agreement in the amount of at least 120% is concluded with the borrower.
5. Loans to RA residents who are not RA citizens can be provided only under the guarantee of RA citizens and residents.
6. At the time of applying for the loan, the sum of applicant's age and loan term should not exceed 65.
7. Residential or non-residential real estate owned by the borrower is being developed/constructed.
8. The loan is provided in stages.
9. The loan is subject to monitoring in accordance with the corresponding internal legal acts of the Bank.
10. Credit history requirements.
• At the time of considering loan application, the borrower/co-borrowers should have no overdue loans, as well as existing loan obligations classified stricter than "standard" class (including guarantees), unless a valid document is submitted regarding the repayment of overdue amounts.
- Delays on each loan (both current and repaid) during the year preceding the loan application period should not exceed 30 days in total, regardless of the amount of overdue liabilities and/or the amount of overdue liabilities does not exceed AMD 10,000 or equivalent foreign currency, regardless of the number of delay days (these conditions are not applied to guarantees).
- Delays on all loans (both current and repaid) during the year preceding the loan application period should not exceed 50 days in total, regardless of the amount of overdue liabilities and/or the amount of overdue liabilities does not exceed AMD 20,000 or equivalent foreign currency, regardless of the number of delay days (these conditions are not applied to guarantees).

Deferral of regular repayment

Deferral of regular repayment may be provided based on the borrower's application. The purpose of deferral of repayment is to allow for non-payment ("missing") of the regular repayment established by the loan schedule upon temporary change of financial flows (vacation, etc.), in which case the total amount to be repaid for the given month (principal + interest) is proportionally redistributed to repayments of subsequent months (In case of monthly service applied, it is also redistributed and added to the service amount of the next regular repayment month).
The following restrictions apply on the applicability of the deferral on regular repayment:
• The possibility of deferral of regular repayment is applicable for loans serviced for at least 6 months.
• Deferral of regular repayment is not applicable during the grace period, as well as in the case of loans with a revised loan schedule.
• At the time of filing the application for deferral of the regular repayment, there should be no more than 6 days in arrears in total on the loan under consideration; the class of the loan should be "standard", the borrower should not have overdue liabilities to the Bank, as well as there should be no payment delay on the repayment preceding the one under consideration for deferral.
• In case of loans with a term of less than 60 months, the deferral on regular repayment can be granted no more than once during the entire loan term.
• In case of loans with a term of 60 months and above, throughout the entire term of the loan (except for the last 2 years defined by the loan schedule) the deferral of regular repayment may be granted for up to 5 times, however not more than once during the reporting year.

Example of calculating interest rates
• In case of loan with the following terms and conditions:

Loan amount

AMD 10,000,000

Nominal interest rate


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.
The procedure for calculating the annual actual interest rate can be found at the following link.

Collateral valuation
The pledged real estate is subject to valuation by one of the property valuation companies cooperating with the Bank. The valuation company is selected by the Customer. The report on appraisal of market/realisable value of the property is valid for 2 months from the report date. An additional revaluation may be required if necessary (e.g. price changes). The market value of the property is considered as collateral value.

Valuating companies

Valuating company


Telephone numbers

"Amintas Group" LLC

"Tun Depo" complex, 23/6 Artsakh Str., c. Yerevan

(010) 432 276,(094) 432 276, (096) 432 276

"RVM Consult" LLC

Tpagrichneri str. 9, room 114, c. Yerevan

(010) 546 490, (098) 944 449, (077) 944 449
(093) 944 449

"Abit" LLC

 Tumanyan str. 8, room 314, c. Yerevan

(033) 999 880, (096) 999 888


Vardanants passage 8/3, room 209, c. Yerevan

(010) 588 797, (043) 588 797

Collateral insurance
The Bank insures the pledged real estate in the amount of at least loan balance by one of the insurance companies cooperating with the Bank, moreover, the Bank acts as the beneficiary.

List of insurance companies

Insurance company


Telephone numbers

"Ingo Armenia" ICJSC

c. Yerevan, Hanrapetutyan 51, 53, Areas 47, 48, 50

(010) 592 121


c. Yerevan, Komitas Avenue , 62 Building

(060) 275 757, (098) 560 797

“Liga Insurance” ICJSC

c. Yerevan, Northern Avenue 1

(010) 591 010

"Nairi Insurance" LTD

c. Yerevan, Avet Avetisyan 116/1 and 116/5,  RA

(060) 500 060, (010) 543 594


c. Yerevan, 0033, Hr. Kochar 35/1, RA

(010) 700 800

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 hard copy (paper based) information and ensures confidentiality.

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

• Provision of statement with periodicity prescribed by RA legislation and/or agreement in the customer's preferred way - 0,
• Provision of additional statement on mortgage loans (including submission to the RA State Revenue Committee) 4 times a year, for the period specified by the customer - 0

• Provision of a statement in addition to the periodicity specified in the previous paragraphs 1
- Dated 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 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
Intra-republican - 0
- Tariff set by the delivery 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 delivery
- Intra-republican - AMD 3,000
- International - fee set by the shipment service provider + AMD 5,000

• 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 - AMD 20,000
• Granting consent to change the right to purchase or build real estate, which is a means of securing a mortgage loan in the bank, into the right of ownership – AMD 0
• Granting consent for the lease of pledged real estate property - AMD 12,000
• 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 revision3 - 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 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.

Required documents



Loan Application Form


Identification documents of the borrower, Public service number or a certificate issued by the body maintaining the state population register on not receiving a PSN (not required if an identification card is submitted)


Certificate from the workplace, with date of issuance as of the date of submission to the Bank should not date back to more than 20 calendar days (a copy of the annual individual report submitted by the employer may also be required)
Such certificate may not be required if the applicant has received his/her salary through the Bank for at least 6 months prior to applying.


In the case of other non-business activities (eg. investment activities, leasing of property, investments in deposits, etc.), a reference of income generated from those types of activities should be submitted.


In case of entrepreneurial activity:

·            Reference on income received from business activities - for legal entities

·            Financial analysis for sole proprietors and individuals


In case the applicant is a sole proprietor, a reference from the State Revenue Committee on the latter's obligations to the state, and in case of engaging in activities requiring licensing or permission to carry out certain activities, also a relevant license and/or permit, if the latter is a significant factor influencing the borrower's income.


Rough estimate of the planned works, and in case of implementation of works requiring a construction permit, appropriate construction permit indicating the deadline for completion of works


Borrower / co-borrower property ownership certificates on the properties owned by them


Original Certificate of ownership, acquisition grounds for the  property under construction.


Unified reference on the Real Estate Unit provided by the RA Cadastre Committee on any encumbrances of the pledged property (submitted after the loan is approved).


Borrower's/pledgers' marriage certificates (if available).


Preliminary valuation letter on collateral is submitted prior to the loan approval.


Collateral valuation conclusion/act is submitted after the loan is approved.


Consents given by the borrower, co-borrower, guarantor, pledger on making requests (prior to loan approval).


Other documents required by the Bank.



Within 1 month after completing the construction works and/or receiving the relevant state registration, the borrower must submit to the Bank the act of valuation of the building under construction, evaluated by one of the valuation companies cooperating with the Bank.


Credit history

Credit history is a collection of data on the financial obligations of an individual or legal entity, which shows the history of the latter’s financial obligations or their fulfillment.
The credit history includes data on 5 year-period prior to the date of inquiry, and is made from information on:
• Financing received by the person, including:
- their number and amount,
- the amount, type, terms of each financing, the nominal interest rate applied by the creditor,
- the information on collaterals securing loan/financing.
• Fulfillment of loan repayments (for example, whether the interest and principal amount repayments were duly paid or not),
• Guarantees provided to other persons, their number and amount, the type of loan secured by each guarantee, terms and information regarding collaterals,
• Overdue days/amounts in terms of financing and guarantees, as well as the penalties and fines charged for them,
• Unpaid or late utility bills.

Credit history does not contain personal data, such as a person’s ethnicity, religious and political views, social status, etc.

If there are incorrect or incomplete data in the credit history, for the purpose of clarification and correction, the borrower can inform about it "ACRA Credit Reporting" CJSC, hereinafter also Credit Bureau, or directly contact the financial organizations providing information. People can address credit bureau by submitting an appropriate written application or electronically, online from the personal portal "My ACRA".
The process of accepting/receiving, discussing and responding to customer complaints regarding credit reports provided by the credit bureau, the sequence of actions is defined by the "Procedure for Dispute Resolution" of "ACRA Credit Reporting" CJSC.

For more details follow the links: and links.

Measures to take to improve the credit history and scoring

In order to improve credit history and scoring, it is necessary to eliminate the main causes of their deterioration, in particular, to pay off current overdue obligations as soon as possible, as well as:

• ease the credit burden by partially or fully repaying existing loans,
• make repayments in accordance with the established schedule, excluding delays and showing punctuality,
• reduce the given guarantees by reducing their number and amount, as well as, if available, ensuring the full repayment of overdue obligations,
• avoid even one-day delays in fulfilling obligations on current/existing loans and becoming a guarantor for unreliable persons,
• avoid applying for new loans frequently.


Due to the change in the foreign exchange rate, the actual annual interest rate and the amount of loan repayments may change.

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 agreement, 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.

If the requested credit facilities are provided also or exclusively for the purpose of refinancing your other credit liabilities with other entities (banks, credit organizations, etc.), we hereby warn you that you are required to repay outstanding interest, penalties, servicing, and other payments to those entities after refinancing, and the Bank shall not be liable for any failure from your side to fulfil these obligations.

Factors for loan approval and rejection
The Bank is inclined to approve the loan, if the applicant:

• Meets the conditions and restrictions of the particular loan,
• Secures his loan obligation with a pledge and guarantee, at the request of the Bank,
• As a result of the assessment the applicant is recognized as creditworthy,
• The documents and references submitted by the applicant are credible and include all necessary information,
• The applicant's credit history is either positive or missing.
The incompliance on the part of the applicant with any of the aforementioned conditions and with the requirements of the Bank’s internal regulations can cause the rejection of the loan.

Time periods for notifying the customer of the decision to provide the loan and for the disbursement of loan amount.
• The decision making takes up to 10 banking days,

• The Customer is notified within one day,

•  The loan agreement is concluded with the customer within 3-5 banking days after submission of the complete package of documents by the Customer,

• The actual disbursement of the loan to the Customer is performed upon receiving the certificate of pledge right from the relevant state authorities.

Venue for loan formalities and method of disbursement
Loan is provided at Head Office and Branches of the Bank.
The loan amount is provided to the borrower by depositing the sum into his/her account.

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

Settlement of 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 Mediator.

Notice on Financial System Mediator
Please be advised that based on the RA Law on Financial System Mediator, the disputes relating to a property claim for up to AMD 10 million or equivalent foreign exchange amount arising with regard to the services rendered to you by Converse Bank CJSC can be settled through the Financial System Mediator.
Based on the agreement concluded between the Bank and the Financial System Mediator, the Bank abandons the right to dispute the resolutions of the Financial System Mediator only for property claims not surpassing AMD 250,000 (two hundred fifty thousand) or the equivalent foreign currency, and the amount of the transaction not surpassing AMD 500,000 (five hundred thousand) or equivalent foreign currency.

Address: 15 M. Khorenatsi, 0010 Yerevan
Business center Elite Plaza, Floor 7
Tel: (+ 37460) 70 11 11
Fax: (+ 37410) 58 24 21
Email: [email protected]

Contact the Bank
For additional information, please
• visit the Bank’s website
• visit the Customer Service Office at the Head Office or any branch of the Bank
• call +374 10 511211
WhatsApp: +374 95 511211
Skype: conversebank-callcenter

                                                                                                                                                       Updated on 14.01.2024