Renovation loans under National Mortgage Company

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Renovation loans 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	Property insurance in case of mortgage of real estate 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.