Vehicle requirements

Loans are secured with cars that will be purchased, in particular:  

• When making a loan, the age of a Russian vehicle should not exceed 3 years,

• When making a loan, the age of a foreign vehicle should not exceed 7 years.

Loan currency

Armenian Dram

Minimum loan amount per borrower

AMD 200,000

Maximum loan amount per borrower

AMD 20,000,000

Loan period

 From 1 to 24 months

Period for loan application review

Within 5 business days, if all required documents are available, including a duly completed loan application form.

Pre-payment

No penalty is charged for the loan pre-payment unless the Loan amount exceeds AMD 10,000,000.

Where the loan amount exceeding AMD 10,000,000 is pre-paid, a penalty is charged at 0.5% of the pre-paid amount.

Nominal interest rate

24 % per annum

Interest rate is accrued on the balance of the outstanding loan on the basis of a 365-day year

Loan amount to vehicle value ratio

For Russian vehicles:

• The maximum loan amount will be limited to 55% of the vehicle value, unless its age is above 2 years,
• The maximum loan amount will be limited to 45% of the pledged vehicle value, if the latter's age is 2-3 years.

For foreign vehicles:

• The maximum loan amount will be limited to 55% of the pledged vehicle value, unless the vehicle's age exceeds 3 years,

• The maximum loan amount will be limited to 45% of the pledged vehicle value if the vehicle's age is 4-7 years,

Repayment of credit liabilities  

Under monthly installment schedule throughout loan period

Fee for the loan extension and credit account servicing

• AMD 30,000 - for loans under AMD 2,000,000,

• AMD 60,000 - for loans of AMD 2,000,001 to AMD 4,000,000

• AMD 90,000 - for loans of AMD 4,000,001 to AMD 8,000,000

• AMD 120,000 - for loans of AMD 8,000,001 to AMD 12,000,000

• 1% of the loan amount - for loans above AMD 12,000,001.

Security

The loan will be secured by the vehicle to be purchased on condition that  vehicle registration document is deposited with the Bank and/or the Bank is provided with a relevant guarantee,

A vehicle is appraised by the appraising committee of the Bank's Head Office (branch), whose members are approved by the directive of the Director General.

If the borrower delays the loan repayment or fails to repay the amount when due and payable, the pledged property shall be subject to seizure in the manner set out under the collateral agreement.  

Insurance requirements

1.   Insurance covers 80% of the vehicle price (against theft, loss or damage),

2.   The Beneficiary of the policy in case of occurrence of such risks is Areximbank-Gazprombank Group CJSC.

3.   The insurance is covered by the borrower, through payment of a lump sum for the entire loan period.

Eligibility requirements

1. RA citizens, as well as persons other than RA citizens who have a permanent place of residence in the RA territory (here, a guarantee of an RA citizen is required) and immovable property owned by them (the borrower and/or co-borrower),

2. The age of a borrower when making a loan should not be under 21, while the final repayment should be due before the retirement age of the borrower.

Loan extension

Upon putting a lien on the vehicle by the State Motor Vehicle Inspectorate, making a tough collateral agreement by the bank and state registration by a relevant subdivision of the State Committee of Real Estate Title Registry (Cadastre) at the RA Government.  

List of documents to be submitted by borrowers

1. A loan application in the form acceptable to the Bank,

2. Social card (if any),

3. An identity card of an RA citizen (for persons other than RA citizens, an identity card with indication of permanent place of residence in the RA territory; here, a guarantee of an RA citizen is required),

4. A document certifying marital status (certificate of marriage, bill of divorce, certificate of spouse's death, if any),

5. Employer's statement on salary or other documents certifying the incomes of a potential borrower,

6. Work-book (if available and required),

7.  Vehicle registration document,

8.  For a director of a legal entity - insert of the state registration of the manager of executive body issued by the State Registry,  

9. Copy (copies) of title registration certificate(s) of the real estate owned by the borrower or co-borrower(s).

Other documents as may be required by the Bank.