* The Co-borrower must be a Borrower’s family member. Family members shall include father, mother, spouse, spouse’s parents, grandmother, grandfather, sister, brother, children, sister's or brother's husband and children.

** The annual loan interest rate shall be adjusted on the first working day of the 37th month, while further adjustments shall be made on the 5th working day of April and October of each year. The adjustment of the annual interest rate on the 1st working day of the 37th month shall be based on the Main Indicator (or Secondary Indicator as applicable) calculated as of the 5th working day of April or October (whichever is earlier) preceding the 1st working day of the 37th month. The adjusted annual loan interest rate may not be less or exceed the annual interest rate for the first year by more than 8 (eight) percentage points.

* The Co-borrower must be a Borrower’s family member. Family members shall include father, mother, spouse, spouse’s parents, grandmother, grandfather, sister, brother, children, sister's or brother's husband and children.

** The annual loan interest rate shall be adjusted on the 1st working day of the 37th month, while further adjustments shall be made on the 5th working day of April and October of each year. The adjustment of the annual interest rate on the 1st working day of the 37th month shall be based on the Main Indicator (or Secondary Indicator as applicable) calculated as of the 5th working day of April or October (whichever is earlier) preceding the 1st working day of the 37th month. The adjusted annual loan interest rate may not be less or exceed the annual interest rate for the first year by more than 8 (eight) percentage points.

Preliminary documents

Buyer

• Copies of passport and social security card, along with the originals
• Copy of marriage (divorce, death) certificate
• Copies of passports, social security cards and birth certificates of family members, potential co-borrowers
• Certificate from the actual place of residence
• Reference on the individual account of the tax inspectorate*
• Copy(s) of the certificate(s) of ownership of the property that is the personal property of the buyer and the alleged co-borrowers (if any)
• Other documents upon request of the bank's loan specialist.

Documents required for loan approval

Buyer

• Real estate valuation report
• Other documents upon request of the bank's loan specialist

Seller

• Reference from the State Committee for Real Estate Cadastre on the burden of property obligations (Unified reference)
• Other documents at the request of the Bank's loan specialist

*The document is submitted at the request of the specialist as necessary.

• The maximum period for making a decision on a loan application is 7 business days.
• The period for informing about the decision on a loan application is 1 business day.
• After the decision is made, the maximum period for collecting the necessary documents and providing the loan is set at 15 days. In case the loan is not provided within the specified period, the decision of the authorized body is considered invalid and, in case of revision, is submitted for repeated consideration by the authorized body.
• The creditworthiness analysis is carried out in accordance with the “Procedure for Providing Mortgage Loans”.

Applications are subject to approval if:

1. The client submits the loan application and the necessary documents in full.
2. The credit risk class for current liabilities must be standard. The total number of days overdue for liabilities during the 12 months preceding the submission of the loan application must not exceed 30 days.
3. The total of all current credit obligations of the borrower, including guarantees provided (except for obligations secured by other real estate, gold, cars, cash) and the overdraft provided cannot exceed the established loan/collateral ratio for the given geography + 10% of the estimated liquid value of the collateralized property.
4. The estimated value of the collateral or collaterals meets the requirements.
5. The authorized body with the authority to make decisions on loan applications at the bank has approved the customer's loan application.

Applications are subject to rejection if:

• The client has not submitted the necessary documents for obtaining a loan.
• As a result of the inquiry into the credit register of the Central Bank of the Republic of Armenia, the Potential Borrower and/or the Potential Co-Borrower had a classified obligation and/or had a total delay of at least 30 days of overdue days during the last 24 months preceding the inquiry.
• In cases where the estimated value of the Collateral or Collateral is insufficient.
• In case of submission of false documents and/or information by the Borrower and Co-Borrower.
• The presence of grounds for rejection of the application in the credit history database, which has not been eliminated.
• The authorized body with the authority to make decisions on loan applications at the Bank did not satisfy the client's loan application.
• The loan application was approved, but the client did not appear or did not submit the required documents within 15 days of approval.

In the event of overdue obligations being fulfilled, repayments are made in the following order:

• Penalties and fines (if any)
• Interest amounts
• Principal amount.

Your property (house, vehicle, or other) may be confiscated in the manner provided for by law where you fail to repay your interests and principal in time.

Where you fail to perform your loan obligations, the loan security, as well as another property of the borrower if the former is insufficient, may be seized and sold in a court or out-of-court procedure both through direct sale and public auction.

Where you fail to perform your obligations either fully or partially, the Lender shall send those data to the credit bureau within a three-day period, where your credit history is generated. You shall have the right to obtain your credit history from the bureau free of charge. Attention: A bad credit history may hinder lending in the future.  

“Your financial directory” is an electronic system which facilitates the search and comparison of the services offered to individuals, and selection of the best options for you.

You have the right to communicate with a financial institution of your choice by post or e-mail. Receiving information electronically is the most convenient option. It is available 24/7, free from the risks of loss of paper information and ensures privacy.

The bank may request additional documents or other information based on the "Know your customer" principle, as well as ask additional questions during oral communication, for the purpose of due diligence of the customer defined by the RA Law "On Combating Money Laundering and Terrorist Financing". .

In accordance with the agreement signed with the USA based on the Compliance Act (FATCA), the financial organization may collect additional information to determine whether you are a US taxpayer.

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