• Annual nominal interest rate (fixed) - 10.7-11.5%,
• Annual actual interest rate (fixed) - 12.03-13.52%
• Loan repayments – at monthly installments or at installment of the principal amount of the loan, envisaging partial repayments of interest amounts and loan.

If required, other repayment schedule of interest amounts and loan may be specified.

• Prepayment - minimum prepayment is set at a minimum of 30% of the purchase price of the property
• Minimum prepayment may be set at 10% of the acquired 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 makes the insurance for a part of the defined prepayment. Prepayment insurance can be made for up to 20% of the value of the residential real estate.
• Collateral – the acquired residential real estate, if applicable, also other residential real estate, owned by the applicant (co-borrower) and/or guarantee(s);
• Commission fees - 1% or 0% of the loan amount, instead 0.5% will be added to the nominal interest rate of the loan;
• Interest rate calculation - daily on loan reducing balance;
• Loan-collateral ratio - loan-to-collateral ratio shall not exceed 70%.

The borrower (co-borrower) shall have no current overdue liability, all current loan liabilities shall be classified as standard, and the total number of overdue days for all loans over the last 12 months shall not exceed 30 calendar days.

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About additional payments: Loan Tariffs

Previous terms of 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

Useful information

• The decision on the loan application is made and the customer is notified within maximum 8 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;
• Loan account statement (including copy) and other information during the agreement validity is provided free of charge.

Example of calculation of loan interest amount:

• Loan amount - 20,000,000 AMD
• Loan interest rate - 11%
• Loan period - 180 months
• Fee - 1%
• In this example the monthly repayment amount * will be 227,345 AMD
• Daily interest amount will be Loan Amount (Balance) x Loan Rate ÷ 365 = (20,000,000×11%÷365) = 6,027.39 AMD

*Repayment amount may differ depending on the number of days of 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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Failure by the borrower to fulfill its liabilities on time is subject to a fine of 0.13% (applied fines) for each overdue day.

The loan repayment is performed in the following sequence (in case of repaying 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

Information bulletin of national mortgage loan for purchase

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.

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