• in case of loans of up to 10 million AMD, estimation of repair expenses is no required
• the loan is provided to individuals with a stable income without a document, verifying the income
• monthly commission fee and loan application review fee are not available.

• Period:
• Mortgage loan for renovation of real estate only with a guarantee - minimum 14 months, maximum 60 months,
• Mortgage loan for renovation of real estate, secured with a collateral - minimum 6 months, maximum 84 months
• Minimum amount - 200,000 AMD
• Maximum amount - 30,000,000 AMD
• Annual interest rate․

Required documents:

• Identification document of the applicant;
• Public service number or reference on not receiving a public service number;
• Certificate of ownership of the real estate to be renovated (copy);
• Identification document (copy) of the co-owners of the real estate to be renovated;
• Ownership document (copy) of real estate, offered as collateral;
• Identification document (copy) of co-owners of the real estate, offered as collateral;
• Marriage certificates (if married) of co-owners of the real estate, offered as collateral;
• Reference from the applicant's employer* about the average monthly income received by the applicant (calculated over the last 12 months);
• Estimate of required current and/or capital renovation works and costs, filled in by the customer;
• If required, other documents may be requested.

The issue date of the documents at the time of acceptance shall not exceed 15 days.

Depending on the circumstances, additional documents and information may be required.

* Reference shall include the customer's monthly net salary/income after taxes, work address, phone numbers, signature and stamp of the referring organization manager, outgoing date of issue.

• 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;
• 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 - 5,000,000 AMD
• Loan interest rate – 16%
• Loan period - 84 months
• In this example the monthly repayment amount * will be 99,310 AMD
• Annual actual interest rate will be 17,82%
• Daily interest amount will be Loan Amount (Balance) x Loan Rate ÷ 365 = (5,000,000×16%÷365) = 2,191.78 AMD

*Repayment amount may differ depending on the number of days of the given month.

In case of foreign currency loans, the basis for the calculation of the annual actual interest rate is the exchange rate published on the official website of the Central Bank of Armenia (CBA); the actual annual interest rate may vary depending on the rate of exchange published on the official website of the Central Bank of the Republic of Armenia.

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.

Learn more:

• Mortgage loan calculator

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

Qualified independent valuation companies, cooperating with the Bank

Informational bulletin of mortgage loan for renovation of real estate

Mortgage loans for renovation (reconstruction) 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.

Mortgage loans for renovation (reconstruction) of real estate are provided for the renovation (reconstruction) of real estate.

• 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 branches of the Bank;
• In case of foreign currency loans, changes in foreign exchange rates may affect loan repayments;
• If the loan is provided on the basis of real estate collateral and the real estate is valued at 30 mln AMD or more, the valuation of the property shall also be carried out by a qualified independent valuator, cooperating with the Bank;
• 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.

YOU HAVE THE RIGHT TO COMMUNICATE WITH YOUR FINANCIAL ORGANIZATION IN YOUR PREFERRED METHOD - BY MAIL OR EMAIL. RECEIPT OF INFORMATION ELECTRONICALLY 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
• Fees, related to pledge of other property - 2,000-10,000 AMD.

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

fininfo.am

ATTENTION: "YOUR FINANCIAL DIRECTORY" IS THE ELECTRONIC SYSTEM FOR SEARCH, COMPARISON OF SERVICES, OFFERED TO INDIVIDUALS, AND MAKING THE SELECTION OF THE MOST EFFICIENT OPTIONS FOR YOU EASIER.