Loans are provided at full-service Branches of ARARATBANK OJSC.

* Effective annual interest rate is calculated at January 20, 2020 exchange rate of AMD 500 per USD 1.  

The collateral must be appraised by an independent appraisal body cooperating with the Bank and be acceptable to the Bank.

For a list of partner insurance companies and tariffs, see here.

Attention: Loan interest rates shall accrue based on nominal interest rate, while the effective annual interest rate shall show how much the loan will cost you if interests and other mandatory payments with regards to loan disbursement and service are repaid in due amounts and specified timelines.  

Order of calculating the effective annual interest rate

The effective annual interest rate may change depending on the change of the exchange rate value published on the official website of the Central Bank of the Republic of Armenia.

Changes in exchange rate may affect the loan repayments.

The adjusted nominal interest rate may be changed not more than twice a year, and the first year’s annual interest rate may increase or decline by up to 8 percentage points.

Fees payable

Tariffs for provision of statements, references and other information

Tariffs for services provided within the framework of credit operations

Dear Customer, the ratings and the number of inquiries generated as a result of your loan applications may affect your overall credit rating in the Scoring systems.

Loans are provided at full-service Branches of ARARATBANK OJSC.

The collateral must be appraised by an independent appraisal body cooperating with the Bank and be acceptable to the Bank.

For a list of partner insurance companies and tariffs, see here.

Attention: Loan interest rates shall accrue based on nominal interest rate, while the effective annual interest rate shall show how much the loan will cost you if interests and other mandatory payments with regards to loan disbursement and service are repaid in due amounts and specified timelines.  

Order of calculating the effective annual interest rate

Fees payable

Tariffs for provision of statements, references and other information

Tariffs for services provided within the framework of credit operations

Dear Customer, the ratings and the number of inquiries generated as a result of your loan applications may affect your overall credit rating in the Scoring systems.

Preliminary documents

• Originals and copies of passport and social security card
• Copy of marriage certificate (divorce certificate, spouse's death certificate)
• Copies of passports, social security cards, birth certificates of apartment owners, persons registered, living in the apartment and members of their families, and potential co-borrowers
• Reference from workplace
• Reference on source of additional income
• Reference on personal tax account*
• Renovation work estimates
• Original and copy of certificate of ownership of the apartment under renovation, grounds for title
• Other documents upon credit officer’s request

List of documents required for loan issuance upon approval

• Reference from the State Committee of Real Estate Cadaster on encumbrances of real estate (property clearance reference)
• Real estate appraisal report
• Other documents upon credit officer’s request

 * The document shall be submitted as necessary and requested by credit officer.

Note: Upon the loan disbursement, the credit officer may request to update any of the documents listed above at any time throughout the loan term.

Application form for mortgage loan under housing finance

• Loan decision is made within 7 working days after the loan application has been submitted.
• The borrower is notified of the decision of the authorized body on the loan within one working day.
• After the loan disbursement decision has been made, the required documents shall be collected and the loan shall be disbursed within 15 working days. Where 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.
• Creditworthiness analysis is carried out in accordance with the "Procedure for providing mortgage loans".
• The ratio of the sum of monthly loan repayments and monthly insurance fees of the borrower’s and co-borrowers’ life and property to the borrower's (co-borrowers’) net income should not exceed 35 (thirty-five) percent. The ratio of the sum of monthly loan repayments, monthly insurance fees of the borrower’s and co-borrowers’ life and property and other long-term monthly expenses (payments on other loans, alimony, tuition, rent, utility payments, etc.) to the borrower's (co-borrowers’) net income should not exceed 45 (forty-five) percent.
• If you activate the option of SMS-notification service, you will receive information on the monthly repayment or date of maturity of the loan. The cost per SMS-notification is AMD 30. Activation of the service is FREE.

The loan application will be approved if:

1. the customer has submitted the complete package of documentation and the loan application,
2. the inquiry made to “ACRA Credit Reporting” credit bureau has shown that the potential borrower and/or co-borrower did not have classified liabilities and/or a late payment of at least 30 days past due within the past 24 months prior to the inquiry,
3. the ratio of the sum of monthly loan repayments and monthly insurance fees of the borrower’s and co-borrowers’ life and property to the borrower’s (co-borrowers’) net income does not exceed 35 (thirty-five) percent,
4. the ratio of the sum of the payments mentioned in clause 3 and other long-term monthly expenses (payments on other loans, alimony, tuition, rent, utility payments, etc.) to the borrower’s (co-borrowers’) net income does not exceed 45 (forty-five) percent,
5. the appraised value of the Collateral or Collaterals meets the requirements,
6. the borrower’s and co-borrower’s revenues meet the requirements,
7. the loan application has been approved by the body authorized to take loan decisions within the Bank.

The loan application will be rejected if:

1. the customer fails to submit all documents necessary for receiving the loan,
2. the inquiry made to the CBA Credit Registry has shown that the potential borrower and/or co-borrower had classified liabilities and/or a late payment of at least 30 days past due within past 24 months prior to the inquiry,
3. the appraised value of the Collateral or Collaterals is insufficient,
4. the borrower’s and co-borrower’s revenues are insufficient,
5. the borrower and co-borrower submit false documents and/or information,
6. the basis for rejection of loan application is available in the credit history database and has not been rectified,
7. the loan application has been rejected by the body authorized to take loan decisions within the Bank,
8. the loan has been approved, but the customer has failed to present itself within 15 days after approval or has failed to present the necessary documents.

Where overdue liabilities are executed, repayments shall be made in the following order:

• Penalties and fines (if any)
• Interest
• Principal

Please be informed that the borrowers who have made early repayments on consumer loans since August 16, 2019 can receive amounts recovered from charging early repayment commission fees starting from December 2021. The amounts will be credited to current accounts of ARARATBANK OJSC customers. Those customers, who are not ARARATBANK OJSC accountholders, may reach ARARATBANK OJSC branches or head office in person, presenting a proof of identity.

Your property (house, vehicle, or other) may be confiscated in the manner prescribed 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 other property of the borrower if the loan security 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 once a year for free. Attention: A bad credit history may hinder lending in the future. 

In the event of non-compliance or partial compliance of the borrower with its credit obligations, fines and penalties shall be imposed.

“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 the financial institution 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.

Please follow the Armenian version