EE Purchase Loans by NMC

1.

Eligibility

RA residents aged 18– 58 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.

2.

Loan currency

AMD

3.

Loan amount

AMD 2,000,000 – AMD 45,000,000

4.

Loan period

120–240 months

5.

Annual interest rates

Nominal

Actual

12.5%

13.38-15.32 %

If the Bank makes a down payment for the borrower, and pays for the borrower’s life insurance and property insurance, (started 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, (started the second year of the loan period)

Mentioned interest rate + 0.4%

6.

Penalty for early loan repayment

Not applicable

7.

Penalty charged for late payment of loan principal and/or interest

For past due principal - 0,015 % per day,

For past due interest - 0,1 % per day.

8.

Loan repayment method

Annuity or equal principal payments to be made on a monthly basis.

9.

Loan security

An apartment in the building under  construction by a bank partner - property development company with an EE passport or the right of first offer, if necessary, additional residential property.

10.

Maximum acquisition and appraisal value of real property

AMD 55,000,000

11.

Loan-to-value ratio

1. Up to 70% of the value of the residential real property (the right of first offer) ^[1]

2. Up to 90% of the value of the residential property to be purchased, if additional residential property is pledged  as well; besides, if the loan is secured by the property to be acquired together with another item of residential property, the loan amount cannot exceed 70% of the pledged property.

3. The loan amount may equal 90% at most, if the mortgage loan is insured at the amount exceeding the one representing 70% of the Loan-to-value ratio.

12.

Insurance

1. Insurance of the pledged property /if the completed facility acceptance report is available/.

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 incomes of the borrower and co-borrower(s) generated from the loan.

3. Mortgage insurance at the amount exceeding the 70% of Loan-to-value ratio. The mortgage loan insurance should be effective until the borrower makes payment at least equal to the amount exceeding the 70% of the Loan-to-value ratio.

13.

Loan disbursement method

• Non-cash (the loan amount will be credited to the developer's special account).

14.

Other terms and conditions

• The down payment will be made by transferring the relevant amount to the Developer's special account.
• As a document confirming the down payment, the borrower can submit an invoice issued by the property developer.
• The entire loan amount will be frozen in the developer's special account until the date of registration of the completed facility acceptance report.

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 (right of first offer) pledging procedure.