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

Renovation loan under National Mortgage Company

1.

Loan purpose

Renovation of residential property, improvement of living conditions

2. 

Eligibility

RA citizens aged 18– 63 who earn their income primarily in Armenia and 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 products

Standard renovation loans

EE renovation loans

EE renovation micro-loans

4. 

Loan currency

                                                                              AMD

5. 

Loan amount

5,000,001 -  15,000,000

5,000,001 – 15,000,000

275,000 – 5,000,000

6. 

Loan period

60 - 84 months

7. 

Annual interest rates

Nominal

 Actual

Nominal

 Actual

Nominal

Actual

13%

14.42%

12.5%

13.85%

12.5%

13.85%

8.

Annual interest rates on loans subsidized by government

Nominal

Actual

14%

Up to 5.64%

 9.

Interest rates subsidized by government

1) the interest rates on loans for renovation of property in border or mountainous settlements will be subsidized at 14%,

2) the interest rates on loans for renovation of property in non-border rural settlements will be subsidized at 12%,

3) the interest rates on loans for renovation of property in non-border urban settlements will be subsidized at 11%,

4) the interest rates on loans for renovation of property in Yerevan will be subsidized at 9%.

10. 

Penalty for late payment of principal and interest

For past due principal amount - 0.015% per day,

For past due interest amount - 0.1% per day.

11. 

Loan repayment method

«Annuity» or «Flexible»

12. 

Loan security

275,000 – 3,000,000

A third-party/parties surety bond (if deemed necessary)

3,000,001 – 5,000,000

A third-party/parties surety bond

5,000,001 – 35,000,000

Property under renovation

13.

Insurance

  • Borrowers' life insurance, to cover at least the loan amount,
  • In case of purchasing solar panels, the latter's insurance to cover their acquisition cost

14. 

Creditworthiness assessment

If the applicant has real property pledged to the Bank, then no creditworthiness assessment is needed if the loan ranges from AMD 275 000 to AMD 3 000 000.

275,000 - 3,000,000

OTI 100%

3,000,001 - 5,000,000

OTI 70%

15.

Other terms and conditions

  • Under the Program, one unit of residential property may be renovated several times, if different renovation measures are envisaged.
  • Under the Program, a single-family home or apartment renovation loan may be subsidized only once.
  • Under the Program, the renovation loan estimate should be prepared using energy efficiency assessment tool.

16.

Prerequisites for loan approval

At least 30% of the loan amount must be used for energy-efficient improvement of the home/apartment and purchase for that purpose of materials/accessories, and purchase of energy efficient household appliances (the share of household appliances cannot exceed 10% of the loan amount). (The list of acceptable for the Bank energy efficient materials/accessories and their limits are set forth in the Program Manual).

If subsidized by the government, the loan will be provided in non-cash manner, at least 80% of all measures and 100% of energy efficient measures should be supported by relevant documents.

17. 

Timeline for making decision on loan application approval or rejection

  • The decision on approving or declining a loan application will  be made within 10 (ten) business days upon submission of the entire package of the required preliminary documents.
  • The loan will be provided within 2 (two) business days after the approval of the loan application.