Renovation of apartments


ARARATBANK will help you to renovate your apartment, if either you or the co-borrower is at least 20 and a citizen of the
Republic of Armenia.

Terms and conditions

Currency Loan amount Maturity Minimum annual interest rate Maximum loan-to-value ratio Repayment frequency Insurance
AMD 25,000,000 120 months 12% 50% Monthly Life and real estate
USD 200,000 120 months 1-5 year`  11%, then 9% + 6  Monthly
LIBOR
50% Monthly Real estate

Advantages of our project

  • Fixed and competitive interest rate, which will secure you from the increase of interest rates
  • Up to 50% funding possibility
  • Tranche funding
  • Possibility of preterm repayment of loans without paying fines and penalties

Important to know
  • At the point of submitting the loan application the customer shall be charged a one-time payment of AMD1,000. This amount is not refundable regardless of the loan decision.
  • At the point of loan disbursement the customer shall be charged one-time loan processing fee of minimum AMD 30000 and maximum AMD 120000 in compliance with the Procedure of Mortgage Loan Disbursement.
  • The collateral appraisal shall be made by independent licensed appraisal companies cooperating with the Bank at the rates set by appraisal companies. Please refer here for the list and rates of appraisal companies.
  • The collateral shall be subject to insurance at the rates set by insurance companies within the loan effective period. Moreover, the appraised liquidation value of the property shall be taken as basis for the property insurance. Please refer here for the list and rates of insurance companies.
  • The ratio of total monthly principal 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.
  • 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 a second consideration, in case the loan application is subject to review.
  • If the borrower fails to fulfill his/her obligations on timely basis, he/she shall pay penalties in amount of:
    a) 0.3% of the past due interest
    b) 0.5% of the past due loan amount


The loan application will be approved if


1. The customer has submitted the complete package of documentation and the loan application
2. The query to the CBA credit register has shown that the Potential Borrower and/or the Potential Co-borrower did not have any classified liabilities and/or was not 30 days past-due within the last 24 months prior to the query.
3.The ratio of total monthly principal repayments, Borrower’s and Co-borrowers’ monthly life and property insurance fees to the Borrower’s (Co-borrowers’) net income does not exceed 35 (thirty-five) per cent.
4. The ratio of total payments specified in Point 3 and other long-term monthly expenses (payments on other loans, alimony, tuition fee, leasing charge, utilities etc.) to the Borrower’s (Co-borrowers’) net income does not exceed 45 (forty-five) per cent.
5. The appraised value of the collateral(s) meets the requirements.
6. Borrower’s and Co-borrowers’ income meet the requirements.
7. The body authorized to take loan decisions approved the customer’s loan application.
8. Other


The loan application will be rejected if

1. The customer has failed to submit the complete package of documentation and the loan application.
2. The query to the CBA credit register has shown that the Potential Borrower and/or the Potential Co-borrower had classified liabilities and/or was at least 30 days past-due within the last 24 months prior to the query.
3. The appraised value of the collateral(s) does not meet the requirements.
4. Borrower’s and Co-borrowers’ income does not meet the requirements.
5. Borrower and Co-borrower have submitted false documentation and/or information.
6. The loan rejection basis, which was not deleted, is available in the historical credit database.
7. The body authorized to tale loan decisions within the Bank has not approved the application.
8. The loan has been approved, but the applicant has failed to present himself/herself within 15 days after approval or has failed to present the necessary documents.
9. Other

INFORMATION

Loan type Mode of interest accrual Mode of loan and interest repayment
Mortgage loans Annually: on the loan balance, accepting year as 365 days
Annuity 
Note
In case of principal amount equal payments (annuity) mode, an equal amount shall be calculated each month, consisting of principal and interests. However, at first the value of interests in the same amount is higher and the value of principal is lower. Within a certain time period this distribution is changing: the value of the principal in monthly repayments increases and the value of interests in monthly repayments decreases, but monthly repayments remain unchanged.


WARNING

IF THE BORROWER FAILS TO MAKE TIMELY INTEREST AND PRINCIPAL REPAYMENTS, THE BANK WILL HAVE TO REPORT THAT NEGATIVE INFORMATION TO THE CENTRAL BANK CREDIT REGISTER.

WARNING

IF THE BORROWER FAILS TO PERFORM OR DULY PERFORM LOAN OBLIGATIONS UNDER THE LOAN AGREEMENT, ALL LIABILITIES ASSUMED BY THE BORROWER SHALL BE DISCHARGED OUT OF THE PROCEEDS OF REPOSSESSING AND SELLING THE COLLATERAL THAT WAS PLEDGED AS LOAN SECURITY

WARNING

IF THE BORROWER FAILS TO PERFORM LOAN OBLIGATIONS, THE COLLATERAL AND THE BORROWER’S OTHER PROPERTY (IF THE COLLATERAL HAS LOST ITS VALUE) MAY BE CONFISCATED AND REALIZED BOTH THROUGH DIRECT SALE AND PUBLIC AUCTIONS IN LEGAL OR OUT-OF COURT FORMS.





Please refer to https://www.abcfinance.am/finhelper/index.php?type=mortgage to get understanding of the system of financial assistance.

 

 

 

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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