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Affordable housing to young professionals

Affordable housing to young professionals

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ARARATBANK offers mortgage loans under the Affordable Housing to Young Professionals program.    

  • Currency

    AMD

  • Interest rate

    7.95%

  • Maturity

    120-240 months

  • Maximum amount

    AMD 25.000.000

Conditions
Borrower

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

The borrower age should not exceed 45.          

Co-borrower

RA citizen and resident individual aged 20, who is the member of the Borrower family and whose age shall not exceed 55.   

 

Loan purpose Apartment acquisition
Currency AMD
Maximum loan amount AMD 25.000.000 (twenty-five million). Loan-to-value ratio cannot exceed 90% 
Prepayment

No prepayment shall be made in the Bank.

Reference issued by the YSU Graduate Union NGO on the prepayment made (minimum in the amount of 10% of the purchasing value of the apartment) shall be submitted. 

Security Property to be acquired
Loan maturity 120-240 months
Annual interest rate 7.95%
Loan repayments Annuity
Loan disbursement mode

By tranches

1st tranche - maximum 50% of the purchasing value of the apartment

2nd tranche -  maximum 30% 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 issued by the YSU Graduate Union NGO on the payments made shall be submitted.  

Loan and interest repayments

Monthly
Loan disbursement mode

Non-cash

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

Insurance

Mandatory, every year.

Borrower’s and co-borrowers’  insurance against accidents and property insurance.

Insurance against accidents shall be made on the loan disbursement date in the amount of outstanding loan amount.

The property shall be insured after the 3rd tranche of the loan is disbursed irrespective of the collateral appraisal carried out by an independent appraisal company in the amount of outstanding loan amount.   

Penalty on past-due loan amount 0.06% daily
Penalty on past-due interest 0.07% daily
Requirements to the Borrower’s and Co-borrowers’ credit history    Total number of past due days of all existing and repaid loans shall not exceed 30 calendar days within 12 months preceding the loan application. Moreover, if the borrower or co-borrowers have loans, such loans shall be classified as standard only. 
Credit rating In compliance with the “Procedure on Mortgage Lending”.
Loan application processing fee N/A
Loan service fee N/A
Վարկի վաղաժամկետ մարման դեպքում տույժեր Չի գանձվում
Monitoring

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.  

Attention

Terms and conditions of mortgage loans disbursed for the purpose of acquisition of apartments in the multistory building under construction at 55/3, 55/33 and 55/34 Tsarav Aghbyur Street, Yerevan within the framework of “Affordable housing to young professionals” shall take effect since 27.02.2017.

See information bulletin in «Provided services'» section 

Work places and occupations of beneficiaries included in the project

  Specialists of RA banks, credit institutions and insurance companies

  Specialists of IT companies, IT specialists

  Specialists of of telecommunication companies

Employees of 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

  Employees of the Armenian Nuclear Power Plant CJSC

Required documents

Please follow the Armenian version

Useful information
  • Loan decision shall be made within 3 business days after all required documents have been submitted.
  • During credit rating, guarantees provided by the borrower, co-borrower and their family members shall be considered in the amount of 50% (fifty percent).
  • The Borrower shall be notified about loan decision within one business day, after the Authorized body has made a decision. Required documents shall be collected and the loan shall be disbursed within 15 days maximum after the loan decision has been made. If the loan is not disbursed within the specified period, the Authorized body’s decision shall be deemed invalid and shall be submitted to the Authorized body for consideration, in case the application is resubmitted.         
  • Fines and penalties are not applied in case of early repayment of the loan.

The loan application will be approved if:

  1. the customer has submitted the complete package of documentation and the loan application.
  2. the query made to “ACRA Credit Reporting” credit bureau shows that the potential borrower and/or co-borrower and/or 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 ratio of monthly loan repayments, monthly insurance fees of the borrower’s and co- borrower's property and other long-term monthly expenses of the borrower/co-borrower and guarantor to the net income of the borrower/co-borrower and guarantor does not exceed 45 (forty-five) percent.
  4. the appraised value of the Collateral or Collaterals meets the requirements.
  5. both the borrower’s, co-borrowers’ and guarantor’s revenues meet the requirements.
  6. the body authorized to take loan decisions within the Bank approved the loan application.

The loan application will be rejected if:

  1. the customer fails to submit all documents necessary for getting the loan.
  2. the query made to “ACRA Credit Reporting” credit bureau shows that the potential borrower/co-borrower and/or 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 is insufficient.
  4. both the borrower/co-borrower and/or guarantor revenues are insufficient.
  5. the borrower/co-borrower and/or guarantor submit false documents and/or information.
  6. the rejection base of loan application is available in the loan historical database, which is not removed.
  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.
Attention

Please follow the Armenian version

Loan amount

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Annual interest rate

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Financial assistant
ABC finance

Page updated 21.11.2019 | 14:50

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