Individual loans provided to individuals by products / Terms and Tariffs /

1.

Loan purpose

Loans are designed for acquisition (in primary and secondary markets), renovation, modernization or construction of commercial real property for  manufacturing, social or other business purposes. The loan application may be approved with consideration of the cost estimate.

2.

Eligibility

RA residents aged 18– 63 who during the loan period will not turn 63 or the loan will be shared by a co-borrower who meets these requirements.

3.

Loan currency

AMD, USD, Euro

4.

Loan amount

Acquisition, constructionof real property

AMD 10,000,000 - AMD 120,000,000 or foreign currency equivalent

Renovation

AMD 5,000,000 - AMD 30,000,000 or foreign currency equivalent

5.

Loan repayment period

Acquisition, construction of real property

AMD

Fixed rate

 60 -180 months

Floating rate

 60 - 240 months

USD and Euro

Fixed rate

 60 - 180 months

Floating rate

 60 - 240 months

Renovation

 60 - 84 months

6.

Nominal (fixed) interest rate per annum^[1]

AMD

13.7% - 17%

USD

9.2% - 12%

Euro

7.2% - 10%

7.

Nominal (floating) interest rate per annum^[2]

AMD

Started at  13.2% (fixed component: started at  4.2% + variable component)

USD

Started at 9.2% (fixed component: started at  8.2% + variable component)

Euro

Started at 7.2% (fixed component: started at  7.2% + variable component)

Maximum and minimum range of fluctuation of floating interest rate

+4%

8.

Penalty for  early loan repayment

Not applicable

9.

Penalty for late payment of the principal and interest amounts

For past due principal amount - 0.015% per day,

For past due interest - 0.1% per day.

10.

Loan security

The real property to be purchased, renovated, other real property. In case of land development, the land under development/real property under construction.

11.

Loan-to-value ratio^[3]

Acquisition in primary market (from the property developer) ^[4]

AMD – up to 90% of the appraised value^[5]

Foreign currency – up to 70% of the appraised value

Acquisition in secondary market

AMD – up to 85% of the appraised value^[6]

Foreign currency – up to 70% of the appraised value

Property construction  and renovation

Up to 70% of the appraised value

12.

Insurance

Real property insurance -  is to be implemented every year at the amount of the loan balance.

13.

Loan disbursement method

• Non-cash: the loan amount will be transferred to the seller's bank account
• Loans for renovation and construction will be disbursed in a lump-sum or in several tranches which will be determined by a competent bank body. A decision on tranche loan will be made with consideration of the customer’s cost estimate, loan period, loan amount and customer's creditworthiness.

14.

Other conditions

• In case of acquisition of real property, the borrower will make a down payment^[7], which will be frozen until the date of the loan disbursement.
• The borrower may refrain from making a down payment, instead pledging additional real property, in which case the loan amount should not exceed the appraised value of the real property, with retention of the loan-to-value ratio of the sum of the appraised market values of all mortgaged properties at 70%.
• In case of acquiring the real property in the primary market, the borrower can submit an invoice confirming the down payment issued by the property developer and/or contracts/agreements on down payment.
• The title to the real property  may serve as security for the loan in which case the Bank may require pledging the funds deposited in the developer's special account in favor of the Bank to secure the following:

15.

Timeline for making decision on  loan application approval or rejection

• The decision on approving or declining the loan application will be made within 10 (Ten) business days upon submission of the entire package of required preliminary documents,
• The loan will be provided within 2 (two) business days after the approval of the loan application and completion of property pledging procedure.