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Real Estate

Loan "CAPITAL" for purchase of real estate

The loan is provided to RA citizen and/or resident private individuals for purchase of real estate. Target usage of the property - non-residential.

Conditions of lending

Loan currency The loan is provided in AMD, USD, or Euro
Amount
  • Minimum AMD 2 mln. or its equivalent in USD/Euro
  • No maximum amount is defined
Maturity Minimum
  • 60 months

Maximum

  • In case of AMD - 84 months
  • In case of USD and Euro - 180 months,

Interest rate

Advance payment Annual interest rate

 

PTI**

Other conditions
USD EUR AMD

 

50% and more

14%

(CBFR+11.5%)*

12%

(CBFR+12.3%)*

19%

(CBFR+12.75%)*
In case of analysis of the income <=60% In case if no analysis of income is conducted - 2 guarantors/ co-borrowers and crediting the advance payment to the banking account
These interest rates apply only if no analysis of income is conducted
40% and more

10.75%

(CBFR+8.25%)*

9%

(CBFR+9.3%)*

17%

(CBFR+10.75%)*
<=60% 1 guarantor/ co-borrower
30-39.9%

11.25%

(CBFR+8.75%)*

10%

(CBFR+10.3%)*

18%

(CBFR+11.75%)*
<=50% 1 guarantor/ co-borrower
20-29.9%

12.25%

(CBFR+9.75%)*

11%

(CBFR+11.3%)*

19%

(CBFR+12.75%>)*
<=45% 2 guarantor/ co-borrower
In case of pledging additional property
0%

11.25%

(CBFR+8.75%)*

10%

(CBFR+10.3%)*

19%

(CBFR+12.75%)*
<=60% 1 guarantor/ co-borrower

 

Loan disbursement fee

Is charged before disbursement of the loan:

0.5% of the loan amount, minimum 15,000 AMD

Fee for review of the loan application

 AMD 5,000, is charged once, at the time of recording the loan application

Loan account service fee Monthly AMD 2,000

Converse Bank floating rate is defined on a monthly basis and published on the official website of the Bank.

** PTI - Monthly net income of the borrower and other members running common household with the borrower and the co-borrower/s/, if any.

Terms and Conditions

Restrictions

  • The maximum amount of monthly repayments of the principal amount of the loan and the accrued interest cannot exceed 45-60% /depending on the size of the advance payment/ of the monthly net income /PTI/ earned by the Borrower and other members running common household with the Borrower and the co-borrowers, if any /if the advance payment is 50% and more, analysis of the income isn’t mandatory/;
  • In case of loans for an amount of AMD 25 mln. and more or its equivalent in USD/Euro, the maximum amount of monthly repayments of the principal amount of all loans outstanding at the time of disbursement and the accrued interest, including the loans disbursed to other members running common household with the Borrower, cannot exceed 55-70% of the total monthly net income /OTI/ earned by the borrower and other members running common household with the borrower and the co-borrower, if any /if the advance payment is 50% and more, analysis of the income isn’t mandatory/;
  • At the time of applying for the loan, the sum of the Borrower's age and the loan maturity cannot exceed 65;
  • The loan can be disbursed to persons who aren’t RA citizens, but are RA residents, only in case of existence of written guarantees provided by RA citizen and resident persons, having stable source of income and/or property pledged with the ownership right;
  • Existence of 1 or 2 guarantors/co-borrowers;
  • During the last one year, the customer shall not have classified credit liability/ies/ and 20 and more overdue days for all loans;
  • During the last one year, the members running common household with the Borrower shall not have credit liabilities classified as non-standard, doubtful, and loss.

Procedure of repayment of the loan and interest amount

Is repaid monthly, in one of the following manners:

  • Annuity
  • Spring-like 

Penalty

Upon default of payment of principal and/or interests, the Borrower pays the Bank a penalty at 0.13% of the overdue principal and interest for each day of delay.

Security

  • Pledging of the purchased real estate is mandatory.
  • The loan/collateral ratio is 80% of the liquid value of the collateral evaluated by an independent appraiser or its purchase price, whichever is the least, and in case of pledging additional immovable property - 100% of the actual price of the purchased real estate; the ratio of the loan to all pledged properties (the purchased and additionally pledged ones) to the total evaluated liquid value cannot exceed 80%. According to the respective regulation, the actual purchase price is the price mentioned in the respective 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 /issue date of the document as of the day of submission to the Bank shall not exceed 20 calendar days/. The Borrower can also be required to present a copy of his/her available annual individual report presented by the employer for the Borrower:
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 borrower is a PE and 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 Borrower's income;
5. Ownership right certificate/s/ for the property/ies/ owned by the Borrower or co-borrowers /if any/;
6. 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 LD before approval of the loan application;
7. A consolidated statement regarding restrictions on the pledged property issued by the Real Estate Cadastre of the Government of RA /to be provided 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. If the Borrower is a private entrepreneur – a reference from the SRC regarding the Borrower's liabilities towards the state;
11. Statement about the price of the purchased property, and if the Borrower has made advance payment – documents evidencing it /if any/;
12. Other documents, as requested by the Bank.

Other mandatory conditions

  • If the Loan is fully repaid during the first three calendar years following the date of Loan disbursement, the Borrower, at the Bank's discretion, shall pay penalty to the Bank for early repayment of the Loan, equal to 3% (three percent) of the initial Loan amount, unless some other rate of early repayment penalty has been agreed between the Parties.

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

Loans are available in head office and in branches.