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

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.

Where the loan is disbursed in foreign currency, changes in exchange rate may affect the loan repayments.

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.

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Additional property in Yerevan. The collateral shall be appraised by one of the independent appraisal companies cooperating with the Bank. At that:

• The property must be located neither in the territory of a hostel or hotel,
• The ownership certificate shall not include unauthorized constructions,
• The real property must not be located in a three-degree and more unsafe building.

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

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.

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.

See information bulletin in «Provided services'» section 

Loans are provided at full service branches of the Bank.

* The annual loan interest rate is adjusted on the first working day of the 61st month, while further adjustments are made on the fifth working day of April and October each year. The adjustment of the annual interest rate on the first working day of the 61st 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 first working day of the 61st month.

As a result of the adjustment of the annual loan interest rate, the annual loan interest rate may not be less or exceed the first year’s annual loan interest rate by more than 8 percentage points.

** Effective annual interest rate is calculated at October 12, 2020 exchange rate of AMD 500 per 1 USD.

*** Funds = Term deposits, bonds (including RA government bonds), other funds available on current and other accounts with ARARATBANK OJSC, which will serve as collateral and will be deposited until the loan-to-value ratio makes 80%. Where deposit early repayment is required, the appropriate amount of cash generated from the repayment shall be directed to the loan early repayment so that the loan-to-value ratio makes 80%.

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.

Mandatory fees

Tariffs for provision of statements, references and other information

Tariffs for services provided within the framework of credit operations

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Preliminary documents

Buyer

• 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 family members and potential co-borrowers;
• Reference from workplace;
• Reference on source of additional income;
• Reference on actual place of residence;
• Reference on personal tax account*;
• Copy(s) of certificate(s) of ownership (if any) of private property of the Buyer and potential co-borrowers;
• Other documents upon credit officer’s request.

Seller

Legal entity

• Copies of founding documents - Charter with all amendments and supplements thereto, State registration certificate with its inserts, including the insert on the information about the company director, tax code;
• Statement issued by State registry on the amendments to the Charter and shareholders, including a statement issued by Central Depository for open joint stock companies and a statement issued by shareholder registry keeper for closed joint stock companies;
• Permissions (licenses, certificates, etc.);
• Copies of passports of the company director and owners;
• Decision of the competent body on alienation of property;
• Real estate certificate and the grounds stated therein;
• Other documents upon credit officer’s request.

Private entrepreneur

• Copies of founding documents: State registration certificate, tax code;
• Permissions (licenses, certificates, etc.);
• Copies of passport and social security card;
• Real estate certificate and the grounds stated therein;
• Other documents upon credit officer’s request.

List of documents required for loan issuance upon approval 

Buyer

• Accident insurance contracts for the property, the Buyer and potential co-borrowers;
• Real estate appraisal report;
• Other documents upon credit officer’s request.

Seller

Legal entity

• Limited liability companies shall be required to submit a reference on net assets, and joint stock companies – a reference on balance value of assets;
• Property clearance reference;
• Other documents upon credit officer’s request.

Private entrepreneur

• Property clearance reference
• Other documents upon credit officer’s request

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

In case of loan disbursement, the credit officer may request to update each of the documents listed at any time during the entire loan term.

The loan application will be approved if:

1. the customer has submitted the complete package of documentation and the loan application.
2. the query made to “ACRA Credit Reporting” credit bureau shows that the potential borrower and/or co-borrower and/or potential guarantor did not have classified liabilities and/or on the whole were not at least 30 days past due within the past 24 months prior to the query.
3. the ratio of monthly loan repayments, monthly insurance fees of the borrower’s and co- borrower's property and other long-term monthly expenses of the borrower/co-borrower and guarantor to the net income of the borrower/co-borrower and guarantor does not exceed 45 (forty-five) percent.
4. the appraised value of the Collateral or Collaterals meets the requirements.
5. both the borrower’s, co-borrowers’ and guarantor’s revenues meet the requirements.
6. the body authorized to take loan decisions within the Bank approved the loan application.

The loan application will be rejected if:

1. the customer fails to submit all documents necessary for getting the loan.
2. the query made to “ACRA Credit Reporting” credit bureau shows that the potential borrower/co-borrower and/or potential guarantor had classified liabilities and/or on the whole were at least 30 days past due within past 24 months prior to the query.
3. the appraised value of the Collateral or Collaterals is insufficient.
4. both the borrower/co-borrower and/or guarantor revenues are insufficient.
5. the borrower/co-borrower and/or guarantor submit false documents and/or information.
6. the rejection base of loan application is available in the loan historical database, which is not removed.
7. the body authorized to take loan decisions rejected the loan application.
8. the loan has been approved, but the customer has failed to present himself/herself within 15 days after approval or has failed to present the necessary documents.

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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