Commercial mortgage loans

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Loans
Commercial mortgage loans

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.
2.	Eligibility	RA residents and non-residents aged 18– 65 who during the loan period will not turn 65 or the loan will be shared by a co-borrower who meets these requirements.
3.	Loan currency	AMD, USD, Euro
4.	Loan amount	Acquisition, construction of real property		AMD 10,000,000 – AMD 120,000,000 or foreign currency equivalent
		Renovation		AMD 5,000,000-AMD 50,000,000 or foreign currency equivalent
5.	Loan repayment period	Acquisition, construction of real property		Fixed rate	60 - 180 months
				Floating rate	60 - 240 months
		Renovation		Fixed rate	60 -84 months
				Floating rate	60 -84 months
6.	Nominal (fixed) interest rate per annum ^[1]	AMD		14% - 17%
		USD		9.2% - 11%
		Euro		7.2% - 10%
7.	Nominal (floating) interest rate per annum ^[2]	AMD	Starting from 13.2% (fixed component: starting from 4.2% + variable component)
		USD	Starting from 9.2% (fixed component: starting from 8.2% + variable component)
		Euro	Starting from 7.2% (fixed component: starting from 7.2% + variable component)
		Maximum and minimum range of fluctuation of floating interest rate				+4%
		The variable component of the floating interest rate will be revised starting the first due date following the 36-month period after the loan origination and every 6 months afterwards using the interest rate applicable in the Bank at the time of revision (published on the website). Floating interest rate calculation procedure
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
				Foreign currency	Up to 70% of the appraised value
		Acquisition in secondary market		AMD	Up to 85% of the appraised value
				Foreign currency	Up to 70% of the appraised value
		Financing without income analysis		Up to 70% of the appraised value
		Construction and renovation		Up to 70% of the appraised value
12.	Insurance	Real property insurance - is to be renewed 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 terms and conditions	In case of acquisition of real property, the borrower will make a down payment ^[5], which will be frozen by the Bank until the loan is disbursed. 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 to be purchased, with retention of the ratio of loan-to-value of the sum of appraised values of all mortgaged property items 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. If the borrower has acquired a right to buy the real property, the latter may serve as loan security.
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.

[1] If the insurance of the customer’s property is implemented by the Bank rather than the customer (will be implemented started the second year of the loan period) – mentioned interest rate + 0.2%.

[2] If the insurance of the customer’s property is implemented by the Bank rather than the customer (will be implemented started the second year of the loan period) – mentioned interest rate + 0.2%.

[3] In calculating the Loan-to-value ratio, we take into consideration either the real property appraisal or acquisition value, whichever is less.

[4] In case of unfinished construction (buying from a property developer) the collateral value is the purchase price indicated in the statement by the property developer and thereafter mentioned in real property purchase agreement.

[5] At the amount of difference between the property acquisition value and loan amount.