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Mortgage loans
Mortgage loans are granted for the purpose of purchasing, renovating or constructing a residential house/apartment.
Loans are granted through refinancing by the National Mortgage Company.
| General Terms of Loans |
| Borrower |
A citizen of the Republic of Armenia, whose main source of income is in Armenia, should not have any active overdue loans. The number of overdue days for all loan payments by the borrower during the 12 months preceding the loan issuance should not exceed 30 days. |
| The amount and currency of the provided loan |
Minimum 300,000 AMD, maximum of 45 million AMD |
| Loan Term |
Minimum 5 years* |
| Annual Nominal Interest Rate |
11-14% |
| Annual Actual Interest Rate |
12-16% |
| Loan/income coefficient |
Maximum 45% |
| Graphic of payments |
Equal repayment of the principal amount
Equal monthly repayment (annuity) |
| Loan application review fee |
Free of charge |
| Loan provision fee** |
0-2% |
| Loan service fee (monthly) |
0% |
| Borrower other costs |
Collateral valuation, state registration and formalization, insurance and related costs |
| Loan security |
Real estate being purchased or renovated, guarantee |
| Insurance |
Mortgaged real estate insurance, at least equal to the loan amount
Borrowers accident insurance, at least equal to the loan amount
Prepayment insurance: if the loan/collateral ratio exceeds 70% and there is no additional collateral |
| Prepayment (upon acquisition) |
Minimum 30% (minimum 10% in case of additional collateral or if there is mortgage liability insurance |
| The term of the loan application review and decision-making |
Up to 3 working days |
| The term of the collateral formulation and loan provision |
Up to 10 working days |
| The procedure for calculating interest amounts |
With an annual nominal interest rate (fixed), which is calculated on the loan balance
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| Penalty calculated on the overdue principal amount and % |
0.1% of the overdue amount for each day of delay |
*At least 10 years in the case of acquisition loans, or according to the requirements set by the National Mortgage Company.
**In case the borrower submits the necessary documents on time
NO EARLY REPAYMENT FEE IS AP`PLICABLE.
| Repayments of the loan and interests |
| Loan repayment schedule |
Loan repayment schedule with schedule of equal payments of principal or equal monthly payments. Periods of loan repayment are possible. |
| Premature repayment |
Premature repayment opportunity without fines and penalties |
| Interest calculation |
Annual nominal interest rate calculated on the outstanding loan balance for a 365-day year |
Regardless of the rates set forth in these Terms, the fees for third-party services may vary by third parties.
Criteria of the loan disbursement approval or denial:
Criteria for a positive decision on loan granting
- Steady income
- Appropriate collateral, guarantees
- Positive credit history
- Employers guarantee
- Other guarantees
Criteria for a negative decision on loan granting
- Insufficient income to pay the credit off
- Customer’s income source can’t be verified or presented income is undocumented
- Bad credit history, with number of overdue days and classifications or customer’s loan history is overloaded
- Charter "re-registered version"
- Register certificate with all tabs
- Reference on the condominium manager (chairman) from the register
- Copy of the condominium manager passport & social card
- Balance Sheet, Financial Statements (Tax Reports)
- The decision of the General Meeting of Owners on receiving a loan;
- Certificate on receivables and payables of the condominium (including loans, other loans)
- List of fixed assets of the condominium
- Income, expenses / on a monthly basis for the last year /
- In case of additional incomes, documents substantiating their fact / day. lease agreement /
In case of a guarantor
- Guarantee passport and social cards, in case of a legal entity - charter, head. register certificate, director's passport,
- Documents substantiating the income of the guarantors
- Documents proving the property of the guarantors
- IF YOU FAIL TO REPAY THE LOAN AND THE INTEREST IN TIME, THE PLEDGED PROPERTY MAY BE REPOSSESSED. IF THE VALUE OF THE COLLATERAL IS NOT SUFFICIENT TO COLLECT THE DEBT, OTHER ASSETS MAY BE REPOSSESSED TOO.
- IF THE BORROWER DOES NOT PAY THE INTEREST AND LOAN PRINCIPAL AMOUNTS IN TIME, INFORMATION ABOUT CREDIT HISTORY WILL BE SUBMITTED TO THE CENTRAL BANK OF ARMENIA CREDIT REGISTER AND ACRA CREDIT REPORTING CJSC.
ATTENTION
ATTENTION: LOAN INTEREST RATES ARE CALCULATED BASED ON THE NOMINAL INTEREST RATE. AND THE ACTUAL ANNUAL INTEREST RATE SHOWS HOW MUCH THE LOAN WILL COST YOU IF YOU MAKE THE INTEREST PAYMENTS AND ALL MANDATORY PAYMENTS UNDER THE LOAN PROVISION AND SERVICING LINE WITHIN THE SPECIFIED PERIODS AND MEASURES. THE FORMULA FOR CALCULATING THE ANNUAL ACTUAL INTEREST RATE IS AVAILABLE ON THE WEBSITE
INTEREST RATE CALCULATION EXAMPLE (PDF)
“Finance for everyone” www.abcfinance.am web page’s “Financial helper” system |
