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Student Loans Refinanced by " Home for Youth" Refinancing Credit Organization state project

The loan is provided to the RA citizens for payment of tuition fees at universities: the list of universities is presented by HOME FOR YOUTH Refinancing Credit Organization.

Currency Amount Maturity Interest Rate Guarantee
AMD

Max. loan amount is AMD 1,800,000, but cannot exceed the total tuition fee;

Each tranche can not exceed AMD 450,000

The loan is transferred directly onto the account of the educational institution annualy, based on the customer`s payment order

Max maturity:

120 months, the expiration date cannot extend beyong the 72th month from the end of education

Maximum 4 tranches but not more than the tuition fee for 1 year.

12%, of which 2%, and 3% upon execellent results, is subsidized under the Project Personal guarantee of the Borrower`s parents or guardians

Terms and Conditions

Restrictions

  • The maximum monthly repayment of principal and accrued interests cannot exceed 50% of monthly net revenues of Borrower and guarantor(s);
  • The sum total of all loans at the date of disbursement, including the monthly repaymrnts of principal and accrued interests of guarantor(s) cannot exceed 60% of monthly net revenues of Borrower and guarantor(s)

Principal and Interest Repayment

  • Annuity-based (by equal monthly installments) from the first month following the end of education, including variable principal and accrued interests; before that period the Borrower is granted grace period during which only interests are paid on a monthly basis.

Penalty

In default of timelines under the agreement, Borrower pays the Bank a penalty for each dayog delay:

  • 0.15% of overdue loan amount
  • 0.4% of overdue interest amount
  • on the 5th working day of delay of repayment of the loan and/or the interest, a one-off penalty is charged in the amount of AMD 15 000.

No charges are paid for early repayment.

Security

  • Personal guarantee of the Borrower’s parents /if the Borrower has only one parent, than the guarantee of one parent / and/or a creditworthy third person who is not a family member;
  • Other collateral by the Bank's demand.

List of Documents Disclosed to the Bank

  • Originals and photocopies of passports and social cards of the Borrower and guarantors;
  • Reference of Employer effective for at most 20 calendar days and photocopy of labor book of guarantor(s);
  • Upon non-entrepreneurial activity (e.g. investment activity, asset lease, investments in deposits, etc,) reference to proceeds from such activity;
  • Upon entrepreneurial activity, reference to proceeds from such activity
  • Photocopy of ownership certificate for assets owned by guarantor/parents;
  • Reference from educational institution including the student`s full name, department and course, annual tuition fee and the bank details of the educational institution. The reference will bear the seal of the university and the signature of the respective dean.
  • Document (invoice, transfer account, etc.) for effective the paymentof the Studen`s tuition fee from the educational institution under the RA laws;
  • Document certifying the honors;
  • From 3 from the place of residence, in the absence of registered residenin in the passport;
  • Other documents as required by the Bank.

Other Requeirements

  • Upon interruption of education, the Bank shall be entitled to require early repayment of the loan or to revise the loan terms including the interest rate, maturity and repayment schedule.
  • At the date of disbursement, the Borrower and guarantors should not have any non- performing or other problematic financial liability.
  • The approval and disbursement of the loan is provided similar to the approval process for other loans refinanced under the Project
  • The loan approval limits are similar to the approval limits of the Student Loan product.