Collateral requirements

1. Apartments, dwelling and private houses, land lots, other business facilities.

It is not appropriate to pledge the following items:

-          real estate of privatized state enterprises and organizations,

-          real estate with registered disabled tenants,

-          real estate, one of which owners is above 65.

Loan currency

Armenian Dram

Loan period

From 3 to 36 months

Nominal interest rate

For loans under AMD 4,000,000- 20 % per annum,

For loans above AMD 4,000,001 - 18% per annum,

Interest is accrued on the balance of outstanding loan based on a 365-day year,

Loan amount to appraised collateral value ratio

At a maximum of 50% of the appraised value of collateral,

The ratio of loan amount to appraised collateral value is determined by the Bank's Credit Committee with consideration of the above mentioned limits.

Repayment of credit liabilities

Monthly annuity payments throughout the loan period.

Minimum loan amount per borrower

AMD 1,000,000

Maximum loan amount per borrower

AMD 20,000,000

Pre-payment

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

Where the loan amount exceeds AMD 10,000,000 a penalty is charged at 0.05% of the pre-paid amount.

Fee for loan extension and servicing of credit account

• 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

• Real estate collateral providing that the title certificate is handed over to the bank for safekeeping,

• Real estate appraisal is performed by persons (individuals and legal entities) licensed by the State Committee of Real Estate Title Registry at the RA Government, who have relevant agreements with the Bank.
• All costs associated with ratification and registration of collateral agreements are covered by the Pledger,
• In the event 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.

Eligibility requirements

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

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

Period of loan application review

Within 10 business days, upon the availability of all required documentation and duly completion of the loan application.

Extension of loan

Upon notarization of collateral agreement and receipt of certificate of collateral registration.

List of documents to be submitted by borrowers

1.      Loan application in the form acceptable to the Bank,

2.      Identity card of an RA citizen (for persons other than RA citizens, an identity card with indication of permanent residence in the RA territory,

3.      Social card (if any),

4.      Owners' passports (birth certificates),

5.      A document certifying marital status (if any), in case of its absence, a relevant written declaration,

6.      A notarized written consent (letter of authorization) of a spouse of the pledger, absent or other co-owner to pledging the property, except for cases when such consent is not legally required,  

7.     Property title certificate,

8.     A document certifying the acquisition of ownership right (if needed),

9.     A unified statement issued by a relevant territorial subdivision of the State Committee of Real Estate Title Registry at the RA Government on registered rights to the real estate and imposed limitations on it certifying that the proposed collateral is free of lien, neither it is arrested nor pledged (is submitted as soon as the loan application is approved by the Credit Committee).

10.  Reference on persons registered in the dwelling facilities (including minors),

11.  A statement on real estate appraisal (appraisal should be performed by an independent appraiser acceptable to the Bank),

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

Other documents as may be required by the Bank.