Vehicle  requirements  

Loans are extended for acquisition of brand new and used vehicles.

A vehicle is considered used if it is re-sold.

• The age of a used Russian vehicle should not exceed 3 years,

• The age of a used foreign vehicle should not exceed 7 years.

Loan currency

Armenian Dram

Minimum loan amount per borrower

AMD 400,000

Maximum loan amount per borrower

AMD 20,000,000

Loan period

From 3 to 36 months

Period for loan application  review

Within 5 business days, on the basis of submission of  all the required documentation and duly completion of the loan application.

Pre-payment

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

In case a 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

1. Brand new Russian and foreign vehicles   - 16 % per annum.

2.Used Russian vehicles:

• Up to 1 year of age - 17 % per annum,
• From 1 to 2 years of age - 18 % per annum,
• From 2 to 3 years of age - 20 % per annum,

3.Used foreign vehicles:

• Under  2 years of age - 17 % per annum,

• From 2 to 5 years of age - 18 % per annum,

• From 5 to 7 years of age - 20 % per annum,

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

Loan amount to vehicle value ratio

70% of the value of the brand new Russian and foreign vehicle.

For used Russian vehicles:

• A loan amount - 60% of the vehicle value, unless its age is not exceed 2 years.
• A loan amount - 50% of the vehicle value, unless its age is over 2 years and not exceed 3 years.

For foreign vehicles:

• Maximum loan amount will be limited to 60% of the vehicle value unless its age is over 3 years.

• Maximum loan amount will be limited to 50% of the vehicle value unless its age is over 3 years and not exceed 7 years.

Repayment of credit liabilities

Monthly annuity payments throughout the loan period

Fee for loan extension and credit account servicing 

• AMD 10,000 - for loans under AMD 2,000,000

• AMD 15,000 – for loans of AMD 2,000,001 to AMD 4,000,000

• AMD 20,000 – for loans of AMD 4,000,001 to AMD 8,000,000

• AMD 25,000 – for loans of AMD 8,000,001 to AMD 12,000,000

• AMD 35,000– for loans above AMD 12,000,001

Security

The loan will be backed by the vehicle to be purchased on condition that vehicle registration document is deposited with the Bank and/or the loan will be secured by 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 the Full Vehicle Value (against theft, loss or damage)

2.   In cases of occurrence of such risks, Areximbank-Gazprombank Group CJSC will be the Beneficiary,

3.   Insurance policy is made at the time of making the loan and is effective for the entire loan period.

4.  Under the insurance, the full value of vehicle will be covered.

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 belonging to them (borrower and/or co-borrower),

2.    The age of a borrower at the moment of making a loan should not be under 21, while the final due date   should be prior to his/her retirement age.

Loan extension

After arresting the vehicle by the State Motor Vehicle Inspectorate, making a tough collateral agreement with 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.  Identity card of an RA citizen (for persons other than RA citizens, an identity card with indication of permanent residence in the RA territory (in this case, 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 documents certifying the incomes of a potential borrower,

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

7.   Vehicle registration document,

8.   In the case of imported vehicles, customs entry order,

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

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

Other documents as may be required by the Bank.