Terms and conditions of mortgage loans disbursed for the purpose

Terms and conditions of mortgage loans disbursed for the purpose of acquisition of apartments in the  multistory building under construction at 8/2 Paruyr Sevak street, Yerevan within the framework of “Affordable housing to young professionals”



Individuals, who are RA citizens and residents at the age of 20 (twenty), acting as a beneficiary of the project “Affordable housing to young professionals”. 

The borrower age should not exceed 45 (forty-five).


Individuals, who are RA citizens and residents at the age of 20 (twenty) and are the Borrower family members, whose age should not exceed 55 (fifty-five) 

Loan purpose

Apartment acquisition




Maximum loan amount

AMD 25.000.000 (twenty-five million), the loan-to-value ratio of which should not exceed 70%  


No prepayment shall be made at the bank.

Reference by the YSU Graduate Union NGO on the prepayment made (minimum in the amount of 30% of the purchasing value of the apartment) shall be submitted. 


Property to be acquired


Loan maturity


120-240 months

Annual interest rate



Loan repayments



Loan disbursement mode

By tranches

1st tranche - maximum 40% of the purchasing value of the apartment

2nd tranche -  maximum 20% of the purchasing value of the apartment

3rd tranche -  maximum 10% of the purchasing value of the apartment

Moreover, the 3rd tranche shall be disbursed only upon completion of the construction in case the purchasing right is replaced by the right of ownership and the bank’s right of collateral over the apartment is registered based on the act of transfer of ownership right over the apartment.   


The loan might be disbursed one-time only in cases when the Borrower applies for the 3rd tranche of the loan.  

In this case a reference by the YSU Graduate Union NGO on the prepayment made shall be submitted.  

Loan and interest repayments


Loan disbursemn mode


Loan amounts shall be transferred to the account of YSU Graduate Union NGO opened with the bank.


Mandatory, each year. Life and property insurance of the borrower and co-borrowers. Life shall be insured on the day the loan is disbursed based on the loan outstanding amount. Property shall be insured during the 3rd tranche of the loan based on the loan outstanding amount after the independent appraisal company appraises the loan security   

Penalty on past-due loan

0.3% daily


Penalty on past-due interest

 0.5%  daily


Annual interest rate on past-due loan amount

CBA settlement interest rate

Requirements to the Borrower’s and Co-borrower’s credit history 

Total number of past-due days of all effective and repaid loans shall not exceed 30 calendar days within the 12 months preceding the loan application. At that, if the borrower and co-borrowers have current loans, such loans must be classified as standard only.

Credit rating

In compliance with the “Procedure on Disbursement of Mortgage Loans”.

Loan application processing fee


Loan service fee



The Bank shall conduct monitoring of the construction at least once every 3 (three) months.  After the completion of the construction monitoring shall be conducted in compliance with the procedure applicable at the Bank.

Required documents

1. Reference issued by the YSU Graduate Union NGO on being the beneficiary of the project and on the prepayment made. 

2. The rest of the documents shall be submitted in compliance with “Procedure on Disbursement of Mortgage Loans”. 

Important to know

  • No penalties and fines shall be charged for early repayment of the loan.
  • The collateral appraisal shall be made by independent licensed appraisal companies cooperating with the Bank at the rates set by appraisal companies. Please refer to this link for the list and rates of appraisal companies.
  • During the credit rating the guarantees provided by borrowers, co-borrowers and family members thereof shall be observed in the amount of 50% /fifty/.
  • The ratio of total monthly loan repayments, Borrower’s and Co-borrowers’ monthly life and property insurance fees to the Borrower’s (Co-borrowers’) net income must not exceed 35 (thirty-five) per cent.  
  • The loan decision shall be made within 7 business days after all required documents have been submitted.
  • After the authorized body has made a loan decision, the borrower shall be notified about it within one day. After the loan decision has been made, the required documents shall be collected and the loan shall be disbursed within 15 days at most. If the loan is not disbursed within the mentioned period, the decision made by the authorized body shall be deemed as void and shall be submitted to the authorized body for a second consideration, in case the loan application is subject to review.

List of work places and occupations of beneficiaries included in the project “Affordable housing to young professionals”


RA banks, credit institutions and insurance companies


IT companies


Telecommunications companies


The Office to the President of the Republic of Armenia


The Staff of the National Assembly of  the Republic of Armenia


The Staff of the Government of  the Republic of Armenia


The Staff of the National Security and Public Council of  the Republic of Armenia 


Public, civil, community and special servants of ministiries and government departments


Employees of museums, other art and cultural centers   


Lecturers, scientific workers, doctors, artists, journalists, pedagogues (preschool, comprehensive,  vocational-technical institutions), sportsmen 


 Employees of State Non-Profit Organization, State Budgetary Institutions and Organizations


 Please refer to https://www.fininfo.am/finhelper/index.php to get understanding of the system of financial assistance.