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Construction

Construction loan "Noruyt"

The loan is provided to RA citizen and/or resident private individuals for renovation/reconstruction or construction of residential and/or non-residential real estate owned by a private individual.

Conditions of lending

Loan currency AMD, USD, Euro
Minimum loan amount AMD 2 mln /equivalent foreign currency
Maturity

Minimum 36 months

Maximum:

  •  In case of AMD - 120 months
  •  In case of USD and Euro - 240 months

 

 

 

 

 

 

 

  

 

Annual nominal interest rate

Loan/collateral 1 Floating interest rate
USD EUR AMD PTI Other conditions

  

 

Up to 60%

13.75%

(CBFR + 11.25)%

12.75%

(CBFR + 13.05)%

17.25%

(CBFR + 11)%

 

Not applicable

2 guarantors/co-borrowers, on condition of crediting the down payment to the banking account

These interest rates apply only if no analysis of income is conducted

10.5%

(CBFR + 8)%

8.75%

(CBFR + 9.05)%

13.75

(CBFR + 7.5)%

AMD ≤60%
USD ≤50%

 

 

 

1 guarantor/co-borrower

60.1-70% 

11%

(CBFR + 8.5)%

9.5%

(CBFR + 9.8)%

14.25%

(CBFR + 8)%

70.1-80% (in case of pledging additional property - up to 100%)

11.5%

(CBFR + 9)%

10.25%

(CBFR + 10.55)%

14.75%

(CBFR + 8.5)%

AMD ≤50%
USD ≤45% (in case of pledging additional property - AMD ≤60%
USD ≤50%)

For loans in foreign currency, if the loan/collateral ratio does not exceed 70% the interest rates set are reduced by 0.5 percentage points, if all of the following conditions are met simultaneously:

a) PTI ≤40%, և
b) the loan maturity is minimum 120 months, and
c) The borrower insures the collateral item for the amount at least equal to the balance of the loan

Loan disbursement fee 0.5 percent of the loan amount, minimum AMD 25,000 (charged before disbursement of the loan)
Fee for review of the loan application AMD 5,000 (charged once, at the time of recording the loan application)
Credit account service fee AMD 2,000 per month

**CBFR (Converse Bank floating rate) 

In case of floating interest rates, the maximum threshold for raising and reducing the nominal interest rate is set at +/- 4 percentage points.
The resulting nominal interest rate is rounded to one hundredth.

** PTI – The ratio of the maximum amount of monthly installments for the principal loan amount and the accrued interest to the monthly net income of the borrower and other members running common household with the borrower and the co-borrower/s/, if any.

General provisions and conditions

Restrictions

  • PTI≤45-60%, depending on the size of the loan/collateral ratio
  • In case of loans for an amount of AMD 25 mln. and more or its equivalent in USD/Euro - OTI≤55-70% (PTI+10%)
  • If the loan/collateral ratio is above 60%, analysis of the income is mandatory
  •  At the time of applying for the loan, the sum of the applicant's age and the loan maturity cannot exceed 65
  • If a land plot is purchased, the target shall be only construction of a residential house, and the construction works shall begin and be completed maximum within two years following the date of disbursement of the loan. If the construction is not finished within the specified time period, the Bank shall consider it as non-target usage of the loan and shall revise the interest rate or demand early repayment of the loan
  • Minimum 1 guarantor/co-borrower is required
  • Requirements towards the credit history of the borrower and other persons running common household with the borrower (according to ACRA inquiry and based on other information collected by the Bank from other sources):

a) At the time of applying for the loan, the applicant shall not have overdue credit liabilities (including guarantees), as well as current guarantees classified by a class stricter than standard
b During the last one year preceding the date of applying for the loan, there shall not be any classification stricter than standard, as well as delays for total 25 and more days in repayment of all loans existing in the applicant's name (these conditions don't apply towards guarantees)
c) At the time of applying for the loan, the persons running common household with the applicant shall not have current overdue credit liabilities and/or liabilities classified by a class stricter than standard (including guarantees)

Procedure of repayment of the loan and interest amount

Is repaid monthly, in one of the following manners:

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

The loan can be disbursed with a grace period up to 12 months, for loans issued for the purpose of purchasing apartments located on the administrative territory of Yerevan:
a) On the condition of complying with the criteria set by the Bank and if the loan/collateral ratio does not exceed 90%, or
b) if the loan/collateral ratio does not exceed 60%
In case of making a decision to issue a loan with a grace period, the size of the monthly installments during the grace period is not taken into account when calculating the creditworthiness indices.

Penalty in case of delay in repayment of the loan and/or interest

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.

Security

Purchased real estate

The loan/collateral ratio is calculated taking as a basis the assessed liquid value of the collateral (maximum 80%, and in case of pledging additional immovable property - 100% of the liquid value of the purchased real estate; the ratio “loan/total liquid value of the total pledged property (purchased and additionally pledged) shall not exceed 80%.

The loan amount cannot exceed 100% of the actual purchase price of the property /the actual purchase price is the price quoted in the respective announcement/agreement, if such price is considered as reasonable in the Bank's justified opinion/.

List of required documents to be submitted to the Bank

1. The loan application-questionnaire
2. Personal identification document, public services number, or a reference on absence of a public services number issued by the body running the state register of the population (isn’t required, if the customer submits an identification card, where the public services number is specified)
3. Reference on the place of residence, specifying the family members living together
4. Reference from the place of employment, the issue date of which as of the day of submission to the Bank shall not exceed 20 calendar days. The applicant can also be required to present a copy of his/her available annual individual report presented by the employer for the applicant.
4.1. In case of conducting other not entrepreneurial activity (e.g. investments, giving property for rent, investments in deposits, etc.) reference on income received from those activities should be submitted
4.2. In case of conducting entrepreneurial activity:
• a reference on income received from the activity – for legal entities
• financial analysis – for private entrepreneurs and private individuals
4.2.1. If required, in case when the applicant is a PE - a reference from the SRC regarding the Borrower's liabilities towards the state, and if the applicant conducts certain activity for which licensing or permission for the activity is required – the respective license and/or permission, if it is a factor significantly affecting the applicant’s income
5. Ownership right certificate/s/ for the property/ies/ owned by the applicant or co-borrowers /if any/
6. The original of the ownership right certificate for the purchased property and the basis of acquisition (purchase and sale agreement, inheritance certificate, etc.) shall be submitted before disbursement of the respective loan (in exceptional cases, it can be required by the Bank before approval of the loan application)
7. A consolidated statement regarding restrictions on the pledged property issued by the Real Estate Cadaster of the Government of RA (after approval of the loan)
8. Marriage certificate/s/ (if any) of the Borrower and pledgers (if they are different persons)
9. Certificate/act on preliminary evaluation of the collateral
10. ACRA reports on the pledger/s/ (before approval of the loan)
11. Statement about the price of the purchased property, and if the applicant has made down payment – documents evidencing it
12. Other documents, as requested by the Bank.

Other mandatory conditions
The early loan repayment penalty, the fine, commission, compensation, or other unfavorable conditions for the borrower are specified by the loan agreement concluded between the Bank and the customer.

Deferring regular installment

Deferring regular installment
Based on the request of the borrower, a regular installment for the latter’s loan can be deferred. The purpose of the deferment is to offer an opportunity to skip the installment for the next month on to the schedule, in case of a temporary change in financial flows (vacation, etc.), by means of relocating the whole amount (principal and interest) to be repaid during the respective month for subsequent months on the schedule (in case of monthly installments, the amount is shifted and added to the amount of repayment set for the month following the next month).

It is done by means of capitalization of the interest payable for the next month to the principal amount of the loan. The capitalized interest shall be relocated together with the principal amount of the following month on all subsequent months on the schedule, following the next month.

The possibility of deferring a regular installment is applicable towards loans of “Noramut”, “Noruyt”, and “Modern” types, serviced minimum for six months, with the following restrictions towards applicability thereof:

  •  The aggregate amount of the obligation for the upcoming month, arising from capitalization, shall not exceed the total principal amount repaid from the beginning of the loan repayment term
  •  Deferment of a regular installment is not applicable during the grace period, as well as for loans with revised schedule
  •  At the time of requesting deferment of a regular installment, there shall not be a total delay in repayment of the respective loan for more than 6 days, the loan shall be classified as “standard”, and the borrower shall not have overdue liabilities towards the Bank, as well as shall not have any delay with the installment preceding the one considered for deferment
  •  for loans with maturity less than 60 months, a regular installment can be deferred only once throughout the validity period of the loan
  •  for loans with maturity of 60 months and longer, a regular installment can be deferred maximum 5 times throughout the validity period of the loan, except for the last 2 years set by the schedule; deferment is possible only once during a reporting year