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

• The decision on the loan application is made and the customer is informed within 6 banking days after submitting the necessary documents;
• In case of a positive decision to provide a loan, it is processed within a maximum of 2 banking days after the completion of the pledge process.

Example of loan interest calculation

• Loan amount - 25,000,000 AMD
• Loan interest rate - 9.8%
• 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 = 25.000.000x9.8%÷365) = 6,712.33 AMD

*The amount of repayment may vary depending on the number of days in the given month.

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

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In case of non-fulfillment of its obligations by the borrower on time, a penalty of 0.13% is calculated for each overdue day (penalties applied).

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

• Fine/penalty
• Interest amount
• Loan principal amount.

Insurance companies cooperating with the bank:

• Rosgosstrakh-Armenia (address: Northern Ave., 1 building, Yerevan, tel .: (374) 10 59 10 10),
• Ingo Armenia (address: 51, 53, Hanrapetutyan St., areas 47, 48, 50; tel .: (374) 10 59 21 21),
• Nairi Insurance (address: 10 Vazgen Sargsyan str., area No. 110, Yerevan 0010, RA, tel .: (374) 60 50 00 60).

Qualified independent appraisal companies cooperating with the bank

Energy Efficiency Mortgage Loan Information Summary

Energy efficient mortgage loans are provided to resident individuals over the age of 18 who are not of retirement age throughout the term of the loan. Energy efficient purchase mortgage loans are provided for the purchase of energy efficient residential real estate located in the territory of the Republic of Armenia.

• Loan is provided in a non-cash form;
• Factors for a positive loan decision are customer credit rating;
• Factors for rejection of loan: insufficient financial performance as a result of the analysis, bad credit history of the customer, insufficiency/lack of required collateral, professional opinion of the Business Advisor, professional opinion of the Credit Committee;
• The loan is registered in the Bank's branches;
• During the loan validity, insurance is made for the borrower(s) against accidents, as well as purchased real estate, being the security for the loan, on an annual basis. Insurance is carried out at the residual amount of the loan through an insurance company, acceptable to the borrower and on terms, acceptable to the creditor. In case of mortgage loans for purchase of real estate of up to 2 mln AMD in regions, insurance is not performed for the acquired property;
• The valuation of the pledged/acquired real estate is carried out by a qualified independent valuator, cooperating with the Bank;
• In case of delay in repayment of the loan for more than 90 days, and if the annual insurance is not carried out on time, the loan is considered to be overdue, as a result of which the interest rate is no longer subsidized, the loan interest rate can be revised and set at the current market interest rate of mortgage loans;
• Collateral agreements, being security for mortgage loans, shall by verified by the notary, and the pledge right, arising from these agreements, is subject to state registration;
• The Bank is obliged to provide the consumer with a contract proposal 7 days in advance and allow 7 days for consideration;
• The bank statements during the agreement validity are provided 20 business days before each repayment, specified by the schedule, in the communication method, preferred by the customer;
• Credit account statement subject to mandatory provision during the validity of the contract and other information is provided free of charge. The statement subject to non-mandatory provision by the RA legislation, the copy of the statement is provided:
• up to 6 months (inclusive) - free of charge,
• for the period of 6 to 12 months (inclusive) - 2,000 AMD (including VAT),
• for the period of more than 1 year - 3,000 AMD (including VAT).
• Upon request, provision of loan information in a format of a reference during the business day of submission of application – 5000 AMD, during the following business days – 3000 AMD.

YOU HAVE THE RIGHT TO COMMUNICATE WITH YOUR FINANCIAL ORGANIZATION IN YOUR PREFERRED METHOD - BY MAIL OR EMAIL. RECEIPT OF INFORMATION ELECTRONICALY IS THE MOST CONVENIENT. IT IS AVAILABLE 24/7, FREE OF THE RISK OF LOSS OF PAPER INFORMATION AND PROVIDES CONFIDENTIALITY.

The Bank may unilaterally change the contractual interest rate by notifying the Borrower at least 7 calendar days in case of non-purposeful use of the loan, as well as failure to fulfill the obligations set forth in the loan agreement.

ATTENTION: APPLYING FOR A LOAN, THE BANK WILL PROVIDE YOU, YOUR GUARANTORS (IF AVAILABLE) WITH AN INDIVIDUAL SHEET OF SIGNIFICANT TERMS OF MORTGAGE LOAN, WHERE THE INDIVIDUAL TERMS OF LOAN, PROVIDED TO YOU, WILL BE PRESENTED.

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 the pledge is the amount of the estimated value of the acquired property
• Advance payment insurance amount – in the size of 2% or 3% of the residual value of the insured prepayment
• 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.