Regional purchase mortgage loans are disbursed to those resident individuals of Armenia over 18 years old, who will not reach the pension age during the whole loan validity period. Regional purchase mortgage loans are provided for the purchase of residential real estate located in the regions.

• Currency – AMD
• Minimum period - 120 months
• Maximum period - 180 months
• Minimum amount - 1,000,000 AMD
• Maximum amount - 25,000,000 AMD
• Annual interest rate (stable) - 9.8%
• Annual actual rate- 10.76-11.02%
• The loan interest rate is calculated towards the loan reducing balance
• The security of the loan is the residential property to be renovated
• Security – residential property to be renovated
• Loan/pledge correlation – the loan amount cannot exceed 70% of the value pledged property
• Requirements presented to the borrower (co-borrower) – the borrower (co-borrower) shouldn’t have current overdue obligations, all the loan obligations should be categorizd as standard, and the total number of all the overdue loan days shouldn’t exceed 30 calendar days
• Minimum pre-payment – 30% of the sale price of the residential real estate to be pruchased
• Security – the purchased real estate, except for the real estate purchase loans up to 2 MM AMD in the regions which are disbursed with movable estate pledge and/or guarantees up to 2 persons
• Loan/pledge correlation – the loan amount cannot exceed 70% of the value pledged property
• Loan repayment options:
  • The income is not received from agricultural activity
    1. monthly equal repayments,
    2. equal repayments of the main amount,
    3. monthly – through equal repayments of the main amount, and then thorough equal monthly repayments (the period of each option usage is decided by the customer)
  • The income is received from agricultural activity
    1. the previous three options mentioned in the previous point,
    2. through equal parts of the main amount – main amount repayment is made in equal parts in the same month every year
    3. through non-equal parts of the main amount – main amount repayment is made in non-equal parts in the same month every year,
    4. other – main amount repayment is done in different sums during different months,

In cases mentioned in the points 2, 3 and 4 the number of repayments of the main amount should comprise at least 2 and the interest amounts should be repaid each month.

Requirements presented to the Borrower – the borrower (co-borrower) shouldn’t have a current overdue obligation, all the loan obligations should be categorized as standard, and the total number of overdue days during the last 12 months shouldn’t exceed 30 calendar days.

• Identification documents (copies) of the applicant, co-owners of the purchased/pledged real estate,
• Social services number,
• Marriage certificate(s) (copies) of the applicant, co-owners of the purchased/pledged real estate, if they are married,
• Passports of household members (in case of disbursing loans based on income received from agricultural activities)
• Birth certificate(s) (copies) for child (children), if available,
• Reference from the applicant’s workplace, which shall contain the size of the salary (income) for the last 12 months, position and the employment period. The reference shall at least contain the employer’s address, name, TIN, telephone numbers, the signature and seal (if available) of the manager of the company, issuing the reference,
• Documents, evidencing other income of the applicant (rent fee, bonuses etc.), as well as information on other expenses (for example, alimony, care or preservation expenses),
• In case of employment of the applicant is less than 12 months, data on previous employment record (employer, position, employment period with each company),
• Ownership certificate (copy) of the purchased/pledged other property,
• Reference on the persons registered in the purchased real estate from the passport office,
• A document verifying the purchase of the real estate by the seller, which can be, for example, the following:
  • certificate of inheritance issued by the notary,
  • certificate of acquisition of property through public auctions issued by a notary;
  • sale or other agreements on alienation of the property.
• Property valuation report by a certified independent evaluator,
• If the applicant is an entrepreneur:
  • Copy of the charter, copy of the registration certificate of the State Registry of Legal Entities (with insets) or copy of reference, copy of TIN (if required),¹
  • License (in case of activities, subject to licensing),
  • Reports (financial statements, income statements (for the last 6 months), tax reports), submitted electronically to the tax authority during the last 12 months and notification on acceptance of reports.
• If the applicant is farming:
  • Reference from village administration,
  • Ownership certificates and/or leasing agreements of agricultural lans, buildings and agricultural machinery

The same documents regarding the applicant should be presented by the co-borrower (if applicable)

• The loan amount shall be provided non-cash with an option of encashment,
• The loan is disbursed in the Bank’s branches,
• In case the income of the borrower is insufficient to obtain the loan, co-borrowers may be involved. Co-borrowers can be the borrowers’ husband/wife, the applicant’s parents, sisters and brothers and the parents of the applicant’s husband/wife, sisters and brothers.
• Evaluation of the real estate to be renovated/pledged shall be performed by the independent certified evaluator, cooperating with the Bank,
• During the whole period of validity of the real estate purchase mortgage loans, the real estate to be purchased, as well as the death cases of borrower (co-borrowers) from accidents compulsory insurance in the amount of the loan balance. The real estate purchased in the regions via mortgage loans up to 2 MM AMD is not a subject of insurance,
• Insurance is made on a residual amount of the loan, through an insurance company acceptable to the borrower and on acceptable terms to the licensee,
• The creditworthiness of the customer is considered a factor of approving or rejecting the loan disbursement
• The factors of approving and rejection of the loan is the assessment of solvency of the customer,
• The decision on the loan application is made within 15 business days upon submission of the application and the package of required documents by the customer
• The customer is informed about the decision of the Bank as a result of loan application discussion in one banking day,
• The loan is disbursed within 3 business days upon the presentation of the full package of necessary documents by the customer and the end of pledging procedure,
• In case of overdue repayment for more than 90 days and not performing the annual insurance in due course, the loan shall be considered as non-qualified, and the loan interest rate may be reviewed and specified within the limits of the market interest rate for mortgage loans, valid at the given moment,

In case of fluctuations of the interest rates of the funds, attracted or placed by the Bank in the financial market and/or change of the financing interest rate and/or availability of such preconditions and/or use of the loan by the Borrower not for the purpose, the Bank may unilaterally change the interest rates and commission fees, specified by the agreement, by notifying the Borrower 30 calendar days in advance.


Read more:

• Procedure of daily interest rate calculation
• Penalties applicable in case of delinquencies against obligations of borrowers
• Expenses for other services by a third party
• Independent appraisal companies cooperating with the Bank