• lending with a constant interest rate for 180 months,
• loan provision with 10% down payment in case of an additional collateral of a residential real estate,
• monthly commission fee and loan application review fee are not available.

• Non-energy efficient loans
• Annual nominal interest rate (stable) - 13.3–14.5%,
• Annual actual interest rate (stable) - 14.89–16.40%

• Down payment - minimum advance payment is set to be at least 30% of the sale price of the purchased property
• Minimum advance payment can be defined at 10% of the purchased residential real estate, if any of the following requirements is met:
• in addition to the acquired residential real estate, other residential real estate is pledged as well;
• the borrower provides insurance for a part of the specified advance payment. Advance payment insurance can be made up to a maximum of 20% of the value of the residential real estate;
• Collateral - the acquired residential real estate, if necessary, also other residential real estate belonging to the applicant (co-borrower) and/or guarantee(s)
• Commission - in the amount of 1% of the loan amount or 0%, instead 0.5% will be added to the nominal interest rate of the loan
• Calculation of the interest amount - daily, on the decreasing balance of the loan
• Loan-collateral ratio - the value of the loan-to-collateral ratio shall not exceed 70%.

• Rosgosstrakh-Armenia (address: 1 Northern Ave., Yerevan, tel.: (374) 10 59 10 10)
• Ingo Armenia (address: 51, 52 Hanrapetutyan Str, areas 47, 48, 50, Yerevan; tel.: (374) 10 59 21 21)
• Nairi Insurance (address: 10 Vazgen Sargsyan str., area 110, 0010, Yerevan, RA; tel.: (374) 60 50 00 60)

Mortgage loans for purchase of real estate are provided to resident individuals over 18 years of age, who will not reach the pension age +4 years during the loan validity. Only the applicant's spouse, the applicant's and her spouse's parents, sisters and brothers can be the co-borrowers. The co-borrower must be a resident of the Republic of Armenia. Co-borrowers bear the same responsibilities as the borrower under the loan liabilities.

• 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;
• If the borrower's income is insufficient to obtain the loan, there may be co-borrowers;
• During the loan validity, insurance is made for the borrower(s) (co-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;
• The valuation of the purchased/pledged real estate is carried out by a qualified independent valuator, cooperating with the Bank;
• In case of overdue loan repayment of more than 90 days and failure to repay the annual insurance on time, the loan is considered to be non-classified, and the interest rate may be reviewed and set at the current interest rate of mortgage loan market;
• 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;
• 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.

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 evaluated amount of purchased property is the insurance amount of the real estate, being the collateral.

• Prepayment insurance fee - 2% or 3% of the residual value of the insured advance payment
• 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.

Financial assistant

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