Loans with confirmation of earning and secured with real estate Consumer loan

Consumer loan

Loans with confirmation of earning and secured with real estate

 

Loans are disbursed for the maturity up to 10 years. You can get the loan either in cash in Armenian drams or non-cash in US dollars or Euro. 



  • Interest rate
    12%-19.5%
  • Maturity
    Up to 120 months
  • Minimum limit
    AMD 1 000 000 equal in USD, EUR
  • Maximum limit
    AMD 20 000 000 or
    or  
    AMD 125 000 000 equal in USD, EUR


The page was updated 21.11.2017 15:31

Consumer loan

Loans with confirmation of earning and secured with real estate 
 
     

General terms and conditions

Purpose

Other

Security

Real estate 

Currency

AMD

USD

EUR

Annual interest rate

Maturity up to 48 months

17%

12.7%

12%

Maturity from 48  to 72 months 

18.2%

14.2%

13.2%

Maturity 72 months and above

19.5%

15.5%

14.5%

Minimum maturity

Not specified 

Maximum maturity

120 months 

Minimum limit in Armenian drams equal to USD/EUR

1 000 000

Maximum limit in Armenian drams equal to USD/EUR 



  • For Armenian drams  - 20 000 000
  • For USD/EUR - 125 000 000


Maximum loan to collateral ratio (liquid value of collateral)



  • For Armenian drams  - 50%
  • For USD/EUR - 60%


Method of disbursement



  • For Armenian drams – cash
  • For USD/EUR– non-cash – through VISA CLASSIC / MASTERCARD STANDARD payment cards


Repayment 

  • Annuity


Requirements to the borrower

Status 
  • Individual – RA citizen 

Eligible age 

  • Eligible age of the borrower as of the date of accepting the loan application should not be less than 23 and not have exceed 65 at the loan maturity 

Availability of co-borrower

  • Allowed

Requirements to the credit history (good credit history) 


  • No existing overdue/ classified obligations (loan, credit line, overdraft, guarantees, etc).

  • No credit history 


Security

Collateral

  • Real estate in the Republic of Armenia, acceptable for the Bank – Zone 1 and Zone 2 

Pledgor 

  • Any individual or legal entity (in the case where the pledger is a legal entity, it should have state registration in RA) 

Appraisal

  • The Collateral must be appraised by one of the appraising  companies cooperating with the Bank

Requirements to the collateral 



  • The real estate should have masonry, panel or reinforced structure (except for the dividing walls and covers between the floors)
  • The real estate should not be public housing, or located on the territory occupied by other constructions – hotels or dormitory
  • The real estate must not be located on the territory of exclusive public interest 


The Bank is liable to require guarantee of an individual or a legal entity as an additional security.

Insurance

Accident death insurance and insurance for disablement of the borrower/guarantor 

  • May be required by the Bank

Collateral insurance

  • May be required by the Bank

Fees

Monthly loan service fee charged to the initial loan amount
  • 0.1%

Upfront fee

  • According to the applicable rates of the Bank

Cashing fee (for loans disbursed without payment cards)

  • Not specified

Payment card rates

  • According to the applicable rates of the Bank, other than the below stated  

Cashing fee

Cashing fee (through ATMs and cashing points of the Bank)

0.1%

Cashing fee (through ATMs and cashing points of other banks – members of ArCa system) 

1.5%

Card to card transfer via internet (both cards issued by the Bank)

0.1%

Subsequent collateral execution fee

  • According to applicable rates of the Bank

Fines and penalties

Late payment fee (day)

0.1%

Late interest payment fee (day)

0.1%

Early repayment fee

Not specified

Other terms and conditions

Main credit agreement

  • The Bank makes Main Credit Agreement with the client for up to 180 months period on loans/credit lines, on card loans/credit lines 

Factors, which can have positive impact on the extension of the loan 


  • Good credit history ;

  • Stable cash income;

  • Compliance of the collateral with the requirements of the Bank;

  • Other factors.


Why the  loan may be rejected 


  • Bad credit history;

  • Insufficient cash income;

  • Incompliance of the collateral with the requirements of the Bank; 

  • Provision of false or untrustworthy information;

  • Provision of such information on the client, which puts the repayment of the loan in question;

  • other grounds.


Որոշման կայացման առավելագույն ժամկետը

  • Maximum 3 business days after submitting all required documents to the Bank  

Որոշման մասին տեղեկացնելու ժամկետ

  • 1 business day

Որոշման վավերականության առավելագույն ժամկետը

  • 15 business days

Կրկնակի որոշման կայացման միանվագ վճարը*

  • 5 000 AMD

Վարկառուին վարկի գումարի տրամադրման ժամկետը

  • 1 business day after submitting document, which confirms the right with regard to the collateral 

Վարկի դիմումի ընդունման, ձևակերպման և տրամադրման վայրը

  • Head office and all branches 

Calculation of actual annual interest rate for Consumer loan

• Annual interest rate - 17%
• Maturity -  48 months
• Monthly service fee - 0.1%
• Single time fee - 0.1%
• Loan application processing fee -  5 000 AMD 

 Effective interest rate -  19.81% 

ATTENTION: THE INTEREST ACCRUED TO THE CREDIT AMOUNT IS CALCULATED ON THE BASIS OF NOMINAL INTEREST RATE. THE ACTUAL ANNUAL PERCENTAGE RATE SHOWS THE COST OF THE LOAN IF YOU PAY THE INTEREST AND OTHER DUE PAYMENTS WITHIN THE DEFINED TERMS AND AMOUNTS.



Early repayment of the loan
No early repayment fee is charged


Exchange rate effect 
Taking into account the fact that the Bank provides loans in both Armenian drams and foreign currency, the borrower should understand that foreign currency fluctuations can have either positive or negative impact on the loan repayment.


Loan request rejection  

The Bank may reject loan applications of those clients, which fail to meet the program requirements or where the Bank is not sure of the solvency of clients; the Bank can provide written notice on rejection upon request of the client.   The Bank is liable to provide such information on rejecting the loan to other banks of RA and credit organizations (according to the RA Law on banking secrecy).

ATTENTION: IN CASE OF FAILURE TO REPAY THE LOAN INTEREST AND/OR PRINCIPAL WHEN DUE YOUR ASSETS CAN BE SEIZED. THE INFORMATION ABOUT YOUR OVERDUE LIABILITIES SHALL BE RECORDED IN THE CREDIT REGISTER.

If the funds received as a result of disposal of pledged property are not enough to cover the borrower's liabilities under the loan, such liabilities shall be paid on the account of other equivalent assets of the borrower. 

The page was updated 23.01.2018 14:37

The following documents should be submitted to the Bank to get consumer loan secured with real estate:


  • ID document,

  • Public service number /reference on non-receiving the PSN

  • Income proof

  • Statement of residence (persons, currently residing in)

  • Title of the pledged property

  • Other documents, as required   

The page was updated 17.11.2017 12:56
Attention: The Bank does not bear any responsibility for the inaccuracy of information on the linked web sites, nor does it accept any responsibility for the advertisements therein or possible consequences arising out of use of information provided on the linked web-sites. In case of any discrepancies in the website materials in Armenian, Russian and English languages, the Armenian version is prevailing.