Building Loans by NMC

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.