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Student loan

Student loan

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Study today, pay tomorrow 

Since ARARATBANK attaches great importance to the education of the young generation and development thereof, it offers a new type of loan. Loans will be disbursed to master and bachelor students of state and state-accredited institutions of higher education within the framework of the project. During the study period the borrowers will repay interests only (maximum 4 years), and equal repayments of the principal and interests after graduation.

Within the framework of STUDENT LOAN program, 2-3% of the loan annual interest rate shall be subsidized by government.   

  • Currency

    AMD

  • Maximum amount

    AMD 4 000 000 AMD 4 000 000 disbursed in maximum 5 installments. Moreover, the amount of each installment shall not exceed AMD 800.000 depending on the amount of the tuition fee

  • Period

    10 years

  • Interest rate

    9%, actual interest rate. 9,38% 9% of which will be subsidized by the state 2 percentage points for all beneficiaries 3 percentage points for excellent students

Interest rate subsidy program

The fourteenth measure on neutralizing Coronavirus economic consequences — approved by the Armenian Government on 23 April 2020 — aims at providing support to students. Under the measure — in accordance with new conditions approved by the Armenian Government regarding existing and newly disbursed student loans — the loans of the Armenian citizen students (who were still students as of 01 May 2020), who are involved in undergraduate, postgraduate studies or hold clinical residency in state and state-accredited higher education institutions in the paid internal or external study mode, will be subsidized. 

The annual interest rate payable by student borrowers between 01 May and 31 December 2020 will total respectively:

  • 0% for students with GPA* 80% and over;
  • 4% for students with GPA less than 80%.

The difference of effective interest rate will be subsidized by the Government.

*GPA – grade point average

Conditions
Borrower* RA citizen and resident, who is either a master or a bachelor student of state and state-accredited institutions of higher education as specified in 
Loan currency AMD
Loan purpose Payment of tuition fees
Annual interest rate

 

9% of which will be subsidized by the state

2 percentage points for all beneficiaries
3 percentage points for excellent students

Loan maturity

A maximum of 10 years, from which only interest (maximum 5 years) is repaid during the course of study, and after the completion of the study, the principal amount of interest and repayments of interest

Maximum loan amount AMD 4 000 000 disbursed in maximum 5 installments. Moreover, the amount of each installment shall not exceed AMD 800.000 depending on the amount of the tuition feeր
Loan security

Guarantees by at least 2 people. Moreover, one of the guarantors shall be one of the parents of the Borrower or the guardian thereof, and second guarantor shall be the relative of the Borrower.

Requirement to the credit history of borrowers and guarantors The potential borrower and guarantors must not have classified liabilities on the day the loan application is submitted and the total of past due days must not exceed 30 days within previous 12 months
Guarantor credit rating

Pursuant to the Procedure of Consumer Loans Disbursement

Loan and interest repayments Monthly annuity payments
Loan and interest repayments Loan disbursement mode Non-cash to the bank account of an institution of higher education
Penalty on past due interest 0.13% per day
Penalty on past-due loan 0.13% per day
Requirement to students

Loan applications will be approved taking into account the progress of a student and based on the documents below: 

  • A first-year student – a copy of a school leaving certificate and results of entrance exams,
  • A second-year student and students of higher courses, as well as master students – a copy of a student’s record book,
  • Each student will be required to submit a reference from an institute of higher education, stating that the given student studies in the given institution. The reference shall be submitted at the beginning of each academic year.
Early repayment requirement In case of leaving the university, the student is obligated to repay the entire loan and the interest accrued at that moment as well as the penalties
Other There are no penalties for early loan repayments

* Information on borrowers may be transmitted or disclosed to the "Housing for Youth" RCO CJSC as well as to the Ministry of Finance / Government of the Republic of Armenia.

Loan applications will be approved taking into account the progress of a student

Attention: Loan interest rates shall accrue based on the nominal interest rate, while the effective annual interest rate shall show how much the loan will cost to you in case interests and other mandatory payments with regards to loan disbursement and service are repaid in due amounts and specified timelines.

Required documents
  • Copies of a student’s passport and social security card
  • First-year students shall submit a copy of school-leaving certificate and a transcript thereof  
  • Second-year, senior as well as postgraduate students shall submit a copy of academic record book 
  • A reference from a higher education institution at the end of each academic year 
  • A reference from a higher education institution on the amount of tuition fee and a respective account number to transfer a tuition fee 
  • Copies of a guarantor’s passport and social security card
  • A reference from the guarantor’s main workplace on the position and amount of salary signed by the Director and Chief
  • A reference on the place of residence of a student and a guarantor
  • Other documents upon request of a credit officer․
List of Higher Education Institution
  1. Yerevan State University
  2. Ijevan branch of Yerevan State University
  3. State Engineering University of Armenia
  4. Gyumri branch of State Engineering University
  5. Vanadzor branch of State Engineering University
  6. Kapan branch of State Engineering University
  7. Yerevan State University of Architecture and Construction
  8. Armenian State University of Economics
  9. Gyumri branch of Armenian State University of Economics
  10. Yeghegnadzor branch of Armenian State University of Economics
  11. Armenian State Pedagogical University after Kh. Abovyan
  12. Yerevan State Linguistic University after V. Bryusov
  13. Gyumri State Pedagogical University after M. Nalbandian
  14. Vanadzor State University named after H. Toumanyan
  15. Komitas State Conservatory of Yerevan
  16. Gyumri branch of Yerevan State Conservatory after Komitas
  17. State Academy of Fine Arts of Armenia 
  18. Gyumri branch of State Academy of Fine Arts of Armenia 
  19. Dilijan branch of State Academy of Fine Arts of Armenia 
  20. Yerevan State Institute of Theatre and Cinematography
  21. Gyumri branch of Yerevan State Institute of Theatre and Cinematography
  22. Vanadzor branch of Yerevan State Institute of Theatre and Cinematography
  23. Goris branch of Yerevan State Institute of Theatre and Cinematography
  24. Yerevan State Medical University after M. Heratsi
  25. Armenian State Institute of Physical Culture and Sport
  26. Gavar State University
  27. Armenian National Agrarian University
  28. Sisian branch of Armenian National Agrarian University
  29. Vanadzor branch of Armenian National Agrarian University
  30. Goris State University
  31. Russian-Armenian (Slavonic) University
  32. American University of Armenia
  33. French University in Armenia
  34. European Regional Educational Academy
  35. NAS RA International Scientific Educational Center
  36. Public Administration Academy of RA
  37. Crisis Management State Academy of RA
  38. Police Educational Complex of RA

 

Useful information
  1. No minimum loan amount is set.
  2. Loan interest rate shall accrue annually over the outstanding loan amount based on a 365-day a year.
  3. Once dismissed from a higher education institution, a student shall be obliged to repay the whole amount and interests accrued thereon as of the day of repayment, including accrued penalties, if any.
  4. Loan interests shall accrue based on the nominal interest rate.
  5. Loan decision shall be made within 5 business days once all required documents are submitted. 
  6. Once the authorized body takes a loan decision, the borrower shall be notified about the decision within one day. Once the decision is approved, the borrower shall have maximum 15 days to collect and submit required documents. Where the loan is not disbursed within a specified period, the decision of the authorized body shall be deemed void. Where the decision is reviewed, it will be submitted to the authorized body for reconsideration.           

The loan application will be approved if 

1. the customer submits the complete package of documentation and the loan application. 
2. the query made to CBA credit register shows that the Potential borrower and/or the Potential guarantor did not have classified liabilities and/or on the whole were not at least 30 days past due within the past 24 months prior to the query. 
3. the appraised value of the Collateral or Collaterals meets the requirements. 
4. both the Borrower’s and the Guarantors’ revenues meet the requirements. 
5. the body authorized to take loan decisions approved the loan application. 
6. Other requirements.

The loan application will be rejected if 


1. the customer has failed to submit all documents necessary for getting the loan. 
2. the query made to CBA credit register shows that the Potential borrower and/or the Potential guarantor had classified liabilities and/or on the whole were at least 30 days past due within past 24 months prior to the query. 
3. the appraised value of the Collateral or Collaterals does not meet the requirements. 
4. both the Borrower’s and the Guarantors’ revenues do not meet the requirements. 
5. the Borrower and the Guarantor submits false documents and/or information. 
6. the rejection basis of loan application, which is not removed, is available in the credit historical database, 
7. the body authorized to take loan decisions rejected the loan application.
8. the loan has been approved, but the customer has failed to present himself/herself within 15 days after approval or has failed to present the necessary documents. 
9. Other requirements.

Attention

When applying for a loan, the Lender shall provide you and guarantor(s) (if any) with an individual sheet on essential terms, wherein you will come across individual terms of the loan to be disbursed to you

Where you fail to perform your obligations either fully or partially, the Lender shall send those data to the credit bureau within a three-day period, where your credit history is generated. You shall have the right to obtain your credit history from the bureau free of charge. Attention: A bad credit history may hinder lending in the future.   

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Financial assistant
ABC finance

Page updated 06.08.2020 | 09:34

In case of discrepancy between Armenian and English versions of the information, the priority is given to the Armenian version.