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Loans to individuals

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

Construction loans under the program of the National Mortgage Company

1.	Loan purpose	Construction of residential buildings/single-family homes
2.	Eligibility	RA citizens aged who earn their income primarily in Armenia and who will not turn 63 during the loan term otherwise the loan will be shared by a co-borrower who meets these requirements
3.	Borrower	The borrower must be the owner of the residential real property and the land lot on which the residential property is being built/has been built.
4.	Loan types	Standard construction loans		Green construction loans
5.	Loan currency	AMD
6.	Loan amount	2 000 000- 35 000 000		2 000 000- 45 000 000
7.	Loan period	120 – 240 months
8.	Annual interest rates	Nominal	Actual	Nominal		Actual
		13%	14.40%	12.5%		13.84%
		If the Bank makes a down payment for the borrower, and pays for the borrower’s life insurance and property insurance, (starting the second year of the loan period)			Mentioned interest rate + 0.6%
		If the Bank pays for the borrower’s life insurance and property insurance, (starting the second year of the loan period)			Mentioned interest rate + 0.4%
9.	Penalty for early loan repayment	Not applicable
10.	Penalty for late payment of principal and interest	For past due principal - 0,015 % per day, For past due interest - 0,1 % per day
11.	Loan repayment method	Annuity or equal principal payments to be made on a monthly basis.
12.	Loan security	The land lot on which the real property is being built/the building under construction, if necessary, additional residential property.
13.	Loan-to-value ratio	70% of the value of residential real property
14.	Insurance	1. Insurance of the pledged property 2. Borrower's and co-borrower(s) (if any) life insurance policies. If the loan is shared by co-borrower(s), life insurance will be paid from the loan amount in proportion to the borrower’s and co-borrower(s)’ income.
15.	Loan disbursement method	Non-cash and in several tranches
16.	Other terms and conditions	For loans designed for construction of residential buildings/single-family homes, the maximum loan amount should not exceed 80% of the construction cost estimate submitted by the borrower. Construction loans will be provided in several tranches, and the last tranche will finance the final stage of construction works and should not exceed 20% of the loan amount. Under the program, the renovation loan estimate should be prepared using energy efficiency assessment tool. If the borrower's title to the land lot was registered not earlier than a year ago, then all the documents substantiating the registration should be submitted to confirm that no changes have taken place in the designated use of the land lot.
17.	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 process.