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Loans to individuals for the acquisition of real estate for business purposes

Loans to individuals for the acquisition of real estate for business purposes

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NEW OFFER for all those individuals who wish to acquire business real estate for commercial purpose.

  • Currency

    AMD, USD

  • Minimum amount

    AMD:5․000․000, USD:10.000

  • Maximum amount

    AMD 150.000.000 USD 300.000

  • Maturity

    60-144 months

Conditions
Borrower

RA citizen and resident individual aged 22 

Borrower age shall not exceed 55 

Co-borrower RA citizen and resident individual aged 22, who is the member of the Borrower family and whose age shall not exceed 55.
Guarantor

RA citizen and resident individual aged 22, who is not the family member and whose age shall not exceed 55.  

Legal entity 

Loan purpose Acquisition of commercial real estate for business purpose, except for industrial use property 
Currency

AMD

USD

Minimum loan amount

AMD 5.000.000

USD 10.000

Maximum loan amount

AMD 150.000.000

USD 300.000

Collateral Property to be acquired, additional real estate (apartment, residential house, public-purpose area, except for  production areas)  
Loan-to-value ratio
  1. Up to 80% of the appraised market value of the property to be acquired  
  2. Up to 100% in case additional property is pledged, however, not more than 80% of the total of the appraised market values of the property to be pledged  
Loan disbursement mode Non-cash, transferred to the Seller’s account together with down payment.  
Loan maturity 60-144 months
Annual interest rate

AMD - 1-5 years – 12,5%, thereafter yield curve interest rate before redemption of ten-year maturity RA Government coupon bonds + 3.5%

USD –  1-5 years -  9%, thereafter 7%  + six-month LIBOR 

Loan repayments Annuity or flat-rate depreciation of the principal amount 
Principle and interest repayments  Monthly
Insurance

Mandatory, annually

Insurance of the property to be acquired in the amount of outstanding loan

Penalty on past-due principal 0.06% daily
Penalty on past-due interest  0.07% daily
Application processing fee N/A
Requirements to the credit history of the Borrower, Co-borrowers and Guarantors  Lack of past-due liabilities (except for repaid guarantees) within 24 months prior to the loan application as well as the total of past-due liabilities shall not exceed 30 days.    
Credit rating Cost-to-income maximum ratio – 50% (All loan liabilities of the borrower and co-borrower or guarantor + insurance cost/borrower’s and co-borrower’s or guarantor’s income*) 
Application processing fee AMD 10.000
Loan service fee Upfront fee in the amount of 0.5% of the loan amount on the loan disbursement date, AMD 50.000 minimum and AMD 200.000 maximum  
Revolving credit opportunity Lending opportunity up to 50% of the repaid principal amount during the first 84 months of the loan effective period

*During credit rating, possible market value of the potential lease of the property to be acquired may be taken into account as a borrower’s income for 50%. The Bank’s employee responsible for the property appraisal shall make a respective note about reliability thereof. In case the loan is extended in US dollars, changes in foreign currency exchange rate may influence the loan repayments.

See information bulletin in «Provided services'» section 

Required documents

Please follow the Armenian version

Useful information
  • After the authorized body has made a loan decision, the borrower shall be notified about it within one day. After the loan disbursement decision has been made, the required documents shall be collected and the loan shall be disbursed within 15 days. 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 reconsideration, in case the loan application is subject to review.
  • Fines and penalties are not applied in case of early repayment of the loan.

The loan application will be approved if:

  • the customer has submitted the complete package of documentation and the loan application.
  • 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.
  • 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.
  • the appraised value of the Collateral or Collaterals meets the requirements.
  • both the borrower’s, co-borrowers’ and guarantor’s revenues meet the requirements.
  • the body authorized to take loan decisions within the Bank approved the loan application.

 

The loan application will be rejected if:

  • the customer fails to submit all documents necessary for getting the loan.
  • 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.
  • the appraised value of the Collateral or Collaterals is insufficient.
  • both the borrower/co-borrower and/or guarantor revenues are insufficient.
  • the borrower/co-borrower and/or guarantor submit false documents and/or information.
  • the rejection base of loan application is available in the loan historical database, which is not removed.
  • the body authorized to take loan decisions rejected the loan application.
  • 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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Page updated 17.09.2019 | 15:05

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