CONSUMER LOAN SECURED BY REAL ESTATE WITHOUT INCOME ANALYSIS


 CONSUMER LOAN SECURED BY REAL ESTATE WITHOUT INCOME ANALYSIS

Borrower

RA citizen and resident individual aged 22 (twenty-two), whose age shall not

exceed 55 (fifty-five) 

Guarantor

RA citizen and resident individual aged 22 (twenty-two), whose age shall not

exceed 55 (fifty-five) 

Guarantee by at least one person is required. The guarantor shall not be necessarily a family member

Currency

AMD

Maximum loan amount

AMD 20.000.000 (twenty million) 

Maximum loan maturity

60 months

Annual interest rate

18%

Loan and interest repayments

Monthly, annuity repayment mode

Type of collateral*

Real estate (apartment, residential house, public territory, except for industrial territories) The property located in Yerevan, Abovyan, Ejmiatsin, Artashat, Ashtarak, Tsaghkadzor, Vanadzor, Dilijan, Masis, Spitak, Charentsavan, Hrazdan, Armavir, Sevan and Ijevan can be provided as collateral.

Maximum loan-to-value ratio

40% of the pledged real estate

Loan-to-value ratio shall be calculated on the appraised liquidation value.

 

Annual interest rate on past-due loan amount

Annual interest rate stipulated by loan agreement

Penalty on past-due interest

0.5% daily

Penalty on past-due principle  

0.3% daily

Requirements to the credit history of the Borrower and Guarantors 

The borrower and guarantor must not have past-due/classified liabilities (loan, line of credit, overdraft, guarantee etc.) on the day the loan application is submitted and within 24 months prior to the loan application as well as total days of past-due liabilities shall not exceed 30 days

Application processing fee

AMD 5 000 

Loan file processing fee 

0.5% of the loan amount, AMD 25 000 minimum and AMD 80 000 maximum

Credit rating

Total of the Borrower’s all liabilities, including that of guarantees and overdrafts, cannot exceed 50% of the liquidation value of the appraised pledged property

*Collateral shall be appraised by one of the independent appraisal companies cooperating with the Bank.

Important to know

 

  • The property must be neither a public housing nor be located in the territory of other building – either hostel or hotel territory,
  • All unauthorized constructions of the real estate must be registered and outlined in the ownership certificate (must be legalized),
  • The real property must not be located in a three-degree and more unsafe building,
  • If the pledged property is a detached house, it will be completely pledged.

 

Notification

1.No minimum loan amount is set.

2.Loan interest rate shall be accrued over the outstanding amount with 365 days in a year.

3.No penalties shall be applied for premature repayments of loan.

4.Loan interests shall be calculated based on the annual nominal interest rate.

5.Annual actual interest rate shows how much the loan will cost to the customer in case interests and other payments are repaid in due amounts and specified timelines.

 

Annual actual interest rate is calculated as follows:

 

I stands for the annual actual interest rate, which is the total expense incurred by the Borrower expressed in the loan annual interest, and which comprises all interests and other payments, which the consumer shall be required to pay upon receipt of the loan and during the whole effective period of the loan.   

A stands for the initial loan amount disbursed to the consumer.

n stands for the figure of loan repayment. 

N stands for the last figure of loan repayment.

Kn stands for the amount of nth payment of loan repayment. 

Dn stands for the period from the loan disbursement date to nth payment of loan repayment date, expressed in the number of days.

6.Loan decision shall be made within 5 business days after all required documents have been submitted.

7.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.        

8. For more details on loan approval/rejection factors please visit ARARATBANK homepage - http://www.araratbank.am

 

 

Actual annual interest rate is calculated as follows:

Suppose a customer is disbursed a real-estate backed consumer loan of AMD 20.000 000 without income analysis at 60 months’ maturity, 19% annual interest rate and annuity payment.  

Costs incurred by the Customer are:  

Collateral appraisal fee - AMD 20.000
Consolidated reference fee - AMD 10.000
Pledge fee - AMD 42.000

Upfront fee (Loan service fee) – AMD 80.000

Annual actual interest rate of the given loan will make 21.15%

 

WARNING 

IF THE BORROWER FAILS TO PERFORM LOAN OBLIGATIONS, THE COLLATERAL AND THE BORROWER’S OTHER PROPERTY (IF THE COLLATERAL IS INSUFFICIENT) MAY BE CONFISCATED AND REALIZED BOTH THROUGH DIRECT SALE AND PUBLIC AUCTIONS IN LEGAL OR OUT-OF COURT FORMS. IF THE BORROWER FAILS TO MAKE TIMELY INTEREST AND PRINCIPAL REPAYMENTS, THE BANK WILL HAVE TO REPORT THAT NEGATIVE INFORMATION TO THE CREDIT REGISTER. 

 

 

SMS service

terms and conditions

* card expiry

* loan or overdraft maturity upon customer request

* (line of credit) overdraft repayment date and amount drawn from the account  upon customer request   

* annual service fee

* loan or overdraft monthly repayment  upon customer request

 

 

 

    AMD 30.00

 

 

 

 

 




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