• low interest rate
• fixed rate lending for a period of 180 months for the purpose of acquiring residential real estate in the regions of the Republic of Armenia
• providing a loan with a 10% down payment in case of pledge of additional residential real estate
• monthly commission fee and loan application review fee are not available

• Annual nominal interest rate (fixed) - 9.3%
  • In case of energy efficient property: 9.3-9.8%
  • In case of non-energy efficient property: 9.8-10.3%
• Annual actual interest rate (fixed) - 10.51-11.62%
• Loan repayments - equal monthly repayments or equal repayments of the loan principal, each month providing interest amount and partial loan repayments

If necessary, another schedule for the repayment of the interest amount and loan principal may be set.

• Advance payment - minimum down payment is set at 30% of the sale price of the property to be purchased.

The minimum down payment may be set at 10% of the residential real estate to be acquired if any of the following requirements are met:

• In addition to the acquired residential real estate, other residential real estate is also pledged;
• The borrower insures a part of the prepayment. Advance payment can be made up to a maximum of 20% of the value of the residential real estate.
• Collateral - residential real estate to be acquired, except for loans up to AMD 2 million, secured by movable property and / or guaranteed by up to 2 persons
• Commission - in the amount of 1% of the loan amount or 0%, instead of 0.5% of the nominal interest rate of the loan will be added
• Interest calculation - daily on decreasing loan balance
• Loan-to-collateral ratio - the loan amount may not exceed 70% of the value of the pledged property
• The borrower (co-borrower) shall have no current overdue liability, all current loan liabilities shall be classified as standard, and the total number of days overdue for all loans in the last 12 months shall not exceed 30 calendar days.
• Requirements for the Borrower (co-borrower) - the borrower (co-borrower) must not have a current overdue liability, all current credit liabilities must be classified as standard, and the total number of overdue days for all loans over the last 12 months must not exceed 30 calendar days.

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About possible additional payments Loan tariffs.

The state support programs are:

1. Financial support for prepayment
2. Financial support for prepaid insurance
3. Financial support for repayment of loan principal of the existing mortgage loan

¹ The documents are required, if the data or documents are missing or are incorrect in the database of the state registry of the RA Ministry of Justice.

• The decision on the loan application is made and the customer is notified within maximum 6 banking days after the customer submits the required documents;
• In case of a positive decision on loan provision, it is registered within maximum 2 banking days after the end of the pledging process.

Example of loan interest amount calculation:

• Loan amount - AMD 5,000,000
• Loan interest rate -9.3%
• Loan term - 180 months
• Commission fee - 1%
• In this example, the monthly loan repayment amount * will be 51,160 AMD
• Daily interest amount will be Loan amount (balance) × Loan interest rate ÷ 365 = 5.000.000x9.3% ÷ 365) = 1,273.97 AMD.

*Repayment size may differ based on the number of days in the given month.

ATTENTION: LOAN INTEREST AMOUNTS ARE CALCULATED BASED ON THE NOMINAL INTEREST RATE, AND THE ANNUAL ACTUAL INTEREST RATE SHOWS HOW MUCH THE LOAN WILL COST FOR YOU, IN CASE OF DUE PAYMENT OF INTEREST AMOUNTS, LOAN PRINCIPAL AMOUNT AND ALL MANDATORY FEES FOR PROVISION AND SERVICE OF LOAN. YOU CAN FIND THE CALCULATION OF ACTUAL INTEREST RATE HERE.

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In case of non-fulfillment of liabilities by the borrower in time, the penalty for each overdue day is calculated in the amount of 0.13% (penalties applied).

Loan repayments are made in the following order (in case of overdue liabilities):

• Fine/penalty
• Interest amount
• Principal amount.

Insurance companies, cooperating with the Bank, are:

• Rosgosstrakh-Armenia (address: 1 Northern ave., Yerevan, tel.: (374) 10 59 10 10
• Ingo Armenia (address: 51, 53 Hanrapetutyan str., areas 47, 48, 50, Yerevan, tel.: (374) 10 59 21 21
• Nairi Insurance (address: 10 Vazgen Sargsyan str., area 110, Yerevan 0010, tel.: (374) 60 50 00 60

Qualified independent valuation companies, cooperating with the Bank

Summary bulleting of regional purchase mortgage loans

Regional purchase mortgage loans are provided to resident individuals over the age of 18 who will not reach the retirement age of + 4 years throughout the term of the loan.

Regional purchase mortgage loans are provided for the purchase of residential real estate in the regions.

For lending, the following payments may be made by the consumer:

• Real estate valuation fee – 5,000 AMD or more, depending on the property surface and type
• Notary service fee - 3,000 - 15,000 AMD
• Fee for registration of certificate of real estate collateral right - 2,000-25,000 AMD
• Joint reference (on real estate restrictions) fee - 10,000 AMD
• Property and accident insurance payments - 0.15% or 0.16% of loan residual value

The amount of real estate insurance that is the subject of collateral is the amount of the appraised value of the property being acquired.

Fees, related to pledge of other property - 2,000-10,000 AMD.

All payments are included in the actual interest rate calculation.

The loan can be repaid (fully or partially) earlier than the contract term, in which case the customer pays the interest amount, calculated for the actual loan term, as well as a lump sum penalty in the following size:

• In case of early repayment during the first year - 0.6% of the loan amount, repaid in excess for the loan principal, subject to repayment, over the specified contractual year;
• In case of early repayment during the second year - 0.4% of the loan amount, repaid in excess for the loan principal, subject to repayment, over the specified contractual year;
• In case of early repayment during the third year - 0.2% of the loan amount, repaid in excess for the loan principal, subject to repayment, over the specified contractual year, and in case of early repayment during the remaining period of the contract, no penalty will be charged.

Contractual year is considered to be each period of 12 months, following the agreement date.

Confiscation of collateral

THE PLEDGED PROPERTY CAN BE CONFISCATED, IF THE BORROWER DOES NOT DULY REPAY THE INTEREST AMOUNTS AND LOAN AMOUNT. IF THE COLLATERAL VALUE IS INSUFFICIENT, THE BORROWER’S LIABILITIES WILL BE REPAID AT THE EXPENSE OF OTHER PROPERTY OF THE BORROWER.

Information, provided to the Credit Registry

INFORMATION ABOUT THE LOAN WILL BE REGISTERED IN THE CREDIT REGISTRY, IF THE BORROWER FAILS TO DULY REPAY THE INTERST AMOUNT AND LOAN AMOUNT.

HAVING A NEGATIVE CREDIT HISTORY MAY BE AN OBSTACLE FOR YOU TO RECEIVE ANOTHER LOAN IN THE FUTURE.

FOR GUARANTORS

Please be informed that:

• If the borrower fails to perform their liabilities, you will pay for it instead, your credit history will be impaired, and your property will be confiscated.
• You will be provided with the copies of the loan agreement, guarantee agreement and repayment schedule.
• The communication will be performed in the way, preferred by you.
• You will be notified 7 days in advance of a change in the terms of the contract.
• A reminder of the current liability will be sent to you 1 day in advance.
• In case of delay of loan repayment, you will be notified at the latest one day later.

THE GUARANTOR HAS THE RIGHT TO:

• Request from the creditor the information on the loan balance at any time.

• Receive the money, paid by you for the loan, from the borrower, as well as other losses incurred by you instead of the borrower.

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