Loans secured with real estate Consumer loan

Consumer loan

Loans with / without 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%-20%
  • Maturity
    Up to 120 months
  • Minimum limit
    AMD 1 000 000
    or
    USD/EUR 2 000  
  • Maximum limit
    AMD 125 000 000 
    or  
    USD/EUR 250 000 


The page was updated 21.02.2018 14:43

Consumer loan

Loans with/without confirmation of earning and secured with real estate 
 
     

General terms and conditions

1 Purpose of the loan Other
2 Security Dwelling, public, commercial real estate
3 Annual interest rate For income – based loans[1] For loans not based on income
Up to 60 months 60 months (inclusive)  up to 120 months inclusive  Up to 60 months 60 months (inclusive)  up to 120 months inclusive 
Loans up to 10 000 000 AMD Loans above and equal to 10 000 000 AMD Loans up to 10 000 000 AMD Loans above and equal to 10 000 000 AMD Loans up to 10 000 000 AMD Loans above and equal to 10 000 000 AMD Loans up to 10 000 000 AMD Loans above and equal to 10 000 000 AMD
Armenian drams 17.00% 18.50% 18.50% 19.50% 17.50% 19.00% 19.00% 20.00%
US dollars 13.00% 13.50% 14.00% 15.50% 14.00% 15.00% 15.00% 16.50%
EUR 12.00% 12.50% 13.00% 14.50% 13.00% 14.00% 14.00% 15.50%
4 Minimum maturity of the loan (months) Not specified
5 Maximum maturity of the loan  (months) 120
6 Minimum amount of the loan (denominated n Armenian drams or equal USD, EUR) AMD 1 000 000
USD/ EUR 2 000
7 Maximum amount of the loan (denominated n Armenian drams or equal USD, EUR) AMD 125 000 000
USD/EUR 250 000
AMD 25 000 000
USD/EUR 50 000
8 Loan to collateral maximum ratio
(with regard to liquid value of the appraised property)
70% 60%
9 Method of extension    - For loans denominated in Armenian drams -  through current account

- For loans denominated in foreign currency – in non-cash method  (through payment cards VISA CLASSIC/ MASTERCARD STANDARD)
10 Method of repayment of the loan and interests thereof Annuity, with equal monthly repayments
Requirements applicable to the borrowers/co-borrowers
11 Status RA citizen physical person
12 Eligible age of the borrower  At least 21 years old as of the date of application and should not exceed 65 at the maturity
13 Requirements to the credit history (good credit history)   - No existing overdue/classified liabilities (loan, credit line, overdraft, guarantee, etc.)

-  No credit history
14 Total DI ratio  
(total debt (average monthly) to net income ratio)
 
55%  
-
Security
15 Means of security * Dwelling/ public / commercial real estate located in the Republic of Armenia
16 Pledger Any physical person or legal entity (if the pledger is a legal entity, it should have state registration in the RA)
17 Appraisal of collateral The subject of collateral must be appraised by specialized organizations collaborating with the Bank
18 Minimum requirements applicable to the subject of collateral 1.  The real estate should have masonry, panel or reinforced structure (except for the dividing walls and covers between the floors)
2. The real estate must not be public housing or located on the territory occupied by other constructions – hotels or dormitory 
3. The real estate must not be located on the territory of exclusive public interest
*The Bank may require to provide guarantee of physical person or legal entity as an additional security
Insurance
19 Life insurance and loss of permanent capability of the borrower due to accident May be required by the Bank
20 Insurance of collateral May be required by the Bank
Fees
21 Loan application processing fee AMD  5 000
22 Loan extension fee (shall be charged from the contractual loan amount as of the time of providing the loan) 1%, minimum AMD 30 000
23 Monthly service fee calculated towards the original amount   0.1%
24 Bank account opening/closing fee According to the rates applicable at the bank
25 Cash withdrawal fee (for loans extended without payment cards) Not specified
26 Payment card rates According to the rates applicable at the bank
Fine, penalty
27 Daily for overdue loans 0.1%
28 Daily for overdue interest 0.1%
29 Early repayment fee 3% of the early repaid amount
Other terms
30 Main Credit Agreement The Bank executes main credit agreement with the client with 180 months maturity for loans/credit lines, card loans/credit lines.
31 The loan is extended based on 1) good credit history
2) stable financial flaws,
3) compliance of the subject of collateral with the requirements of the Bank
4) Other factors
32 Why the loan may be rejected  1) bad credit history
2) incompliance of the subject of collateral with the requirements of the Bank
3) provision of false or unreliable information
4) provision of such information, which rise suspicion to the return of the loan
5) other factors
33 Maximum term of making decision Maximum 1 business day after submitting all required documents to the Bank
34 Term of giving notice on the decision to the client 1 business day
35 Maximum term of validity of the decision 60 calendar days
36 Term of providing the loan to the borrower 1 business day after receiving the proof of title with regard to the subject of collateral
37 Where to apply All branches of the Bank

[1] For income based loans, the structure and the weight of income according to Annex 1. 




Calculation of actual annual interest rate for Consumer loan

Loan amount - 10 000 000 AMD
• Annual interest rate - 17%
• Maturity -  60 months
• Monthly service fee - 0.1%
• Single fee - 0.1%
• Loan application processing fee -  5 000 AMD 

 Effective interest rate -  21.15% 

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.

Note

The borrower may choose to pay the interest accrued to the principal amount of the loan in the currency in which the loan is extended 


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 21.02.2018 14:40

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.

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