Affordable housing for young professionals


 


Terms and conditions of mortgage loans disbursed for the purpose of acquisition of apartments in the multistory building under construction at 55/17 and 55/20 Tsarav Aghbyur Street, Yerevan within the framework of “Affordable housing to young professionals” 


 

Borrower 20 years old RA citizen and resident who is considered to be the benefiter of ‘’ Affordable Housing for Young Professionals” program. The borrower’s age should not exceed 45 years.
Co-borrower 20 years old RA citizen and resident who is supposed to be a member of the borrower’s family and whose age should not exceed 55 years
Loan purpose Apartment acquisition
Currency AMD
Loan amount Max. 70% of the amount of apartment acquisition
Deposit Deposit is not paid in the bank. Reference (which cannot be less than 30% of the amount of apartment acquisition) is submitted by “YSU Graduate’s Union” NGO
Collateral Acquired property
Loan period 120-240 months
Annual Interest rate 10%
Loan repayments Annuity
Loan disbursement method Stage by stage
1-st stage max of 40% of the amount of apartment acquisition
2-nd stage max 20% of the amount of apartment acquisition
3-rd stage max 10% of the amount of apartment acquisition, moreover, the 3-rd stage is disbursed after getting final act and in case the new property certificate of real estate is available. The loan can be disbursed nonrecurring only in case the borrower has applied for the receipt of the latest stage. In that case the reference of payments made by “YSU Graduate Union” NGO is presented.
Loan interests repayments Monthly
Loan disbursement method Non-cash
Loan’s amount is transferred to “YSU Graduate Union” NGO bank account
Insurance Mandatory, each year. Life and property insurance of the borrower and co-borrowers. Life shall be insured on the day the loan is disbursed based on the loan outstanding amount. Property shall be insured during the 3rd tranche of the loan based on the loan outstanding amount after the independent appraisal company appraises the loan security
Fine for overdue amount 0.3% daily
Fine for overdue interest rate 0.5% daily
Annual interest rate of overdue amount CBA settlement interest rate
Requirements to the borrowers and co-borrowers credit history Total number of past-due days of all effective and repaid loans shall not exceed 30 calendar days within the 12 months preceding the loan application. At that, if the borrower and co-borrowers have current loans, such loans must be classified as standard only.
Creditworthiness According to “Mortgage loans disbursement form”
Application service fee Not defined
Loan service fee Not defined
Monitoring Bank implements monitoring of construction at least once in three months. After the end of the construction monitoring is implemented in compliance with the acting Procedure of the Bank
Required Documents 1. Reference by “YSU Graduate Union” NGO for being the beneficiary of the program and reference on 30% prepayment made
2. The rest of the documents shall be provided in compliance with “ Procedure on Mortgage Loan Disbursement”

Important:

No fines defined for loan premature repayment

The list of professions and work places of beneficiaries involved in ‘’ Affordable Housing for Young Professionals” program
1. Banks of the Republic of Armenia
2. Information Technology Organizations, IT specialists
3. Telecommunication Operator Organizations
4. The Office of the President of RA
5. Staff of National Assembly of RA
6. Staff of the Government of RA
7. Staff of the National Security Council of RA
8. Ministry of Education and Science of RA
9. National Gallery of RA
10. Matenadaran
11. State Revenue Committee of RA
12. Yerevan State University
13. Young doctors,artists, scientists, journalists, pedagogues


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

Mandatory, each year.

Life and property insurance of the borrower and co-borrowers. 

Life shall be insured on the day the loan is disbursed based on the loan outstanding amount.

Property shall be insured during the 3rd tranche of the loan  based on the loan outstanding amount after the independent appraisal company appraises the loan security 




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