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Consumer loan for purchase of a vehicle on the primary market1
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Purpose
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Purchase of a new vehicle on primary market (car dealer) or transfer of a car loan from another bank/credit organization to Ameriabank
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Eligible age of client/co-borrower/guarantor
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18-65 years old, provided that the borrower's age at the time of expiry of loan agreement will not have exceeded 65, otherwise a co-borrower or guarantor is required. The eligible age of co-borrower or guarantor is 18-65 provided that at the time of expiry of agreement it will not have exceeded 65.
If involvement of a co-borrower or guarantor is a required condition under loan terms (except where co-borrowers or guarantors possess at least 70% of the income included in OTI calculation), the eligible age is 18-65 provided that at the time of expiry of agreement it will not have exceeded 65.
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Residency
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Citizens and non-citizens of Armenia who are resident in Armenia
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Currency
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AMD
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Minimum and maximum loan limit
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AMD 3 million - AMD 50 million
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Term (months)
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36 months
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84 months
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Nominal annual interest rate, property insurance included¹
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Fixed
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Adjustable fixed (rate can be changed starting from the 37th month)
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16.4%
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Fixed component 7.9% + variable component (base rate)
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Annual percentage rate, property insurance included
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18.13-19.58%
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17.9-18.61%
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Other terms related to the interest rate
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Where insurance is obtained by the client, the interest rate is decreased by 1%.
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If repayment schedule is differentiated or mixed, the applicable interest rate is increased by 0.5%.
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If the collateral related ratios (loan-to-value ratio) deviate from those approved by the internal regulations of the Bank, the applicable interest rate is increased by 0.25%.
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If the creditworthiness criteria deviate from those approved by the internal regulations of the Bank (any or several of the declared income related criteria, OTI and OSM), the applicable interest rate is increased by 0.25%.
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In case of other deviations, the applicable interest rate may be increased by 0.25%.
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Lump sum disbursement fee
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0.5% of the loan principal or AMD 50,000, whichever is greater
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Cashing of the loan amount by the borrower
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Free
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Minimum down payment
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At least 10% of the vehicle price
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Repayment 1
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Annuity (equal monthly installments consisting of a portion of loan and a portion of interest)
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Differentiated (monthly repayment of equal portions of principal amount while interest accrues to outstanding loan and decreases each month)
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Mixed (client may choose an individual repayment schedule based on seasonality of cash flows, provided that at least 20% of contractual loan amount is repaid each year; interest payable on monthly basis)
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Eligible collateral
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The loan is secured by the vehicle being purchased.
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Loan-to-value (LTV) ratio
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The Bank lends 90% of the price specified in the reference provided by the car dealer.
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Details of vehicles to be pledged
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Car bought from a car dealer (not registered)
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Appraisal of the collateral
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N/A, if the car is bought from the car dealer.
Estimated pledge value is based on the price specified in the reference provided by the car dealer to the client.
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Additional security
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The Bank may request guarantees of individuals and/or companies as additional security.
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Insurance of the collateral2
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Insurance of the pledged vehicles to be maintained throughout the loan term:
1. If obtained by the client: at least to the extent of outstanding principal
2. If obtained by the Bank: to the extent of outstanding principal
The Bank does not obtain insurance for the following vehicles:
• Vehicles transporting hazardous materials (toxic substances, chemicals, radioactive and explosive materials)
• Vehicles to be used in races, test drives; vehicles which have three wheels, snow removers, motorcycles, special purpose vehicles
• Taxis and rental cars
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Required documents
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Required documents filed together with the loan application
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Loan application
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• ID [original]
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• Certificate of ownership of property to be purchased/pledged [copy]
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Documents required after initial approval
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• Proof of employment and/or other income
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• Marriage (divorce, spouse death), birth certificate [original]
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• Certificates of registration and ownership certificates of vehicles to be pledged (original)
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• Initial report on appraisal of vehicle
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Documents required after loan approval
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• IDs of owners of vehicle to be purchased/pledged [originals]
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• Copies of marriage (divorce, spouse death) certificates of owners of vehicle to be pledged
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• Statement, issued by the Police, on encumbrance of vehicle
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• Vehicle appraisal report (final)
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• Vehicle insurance policy
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• Documentary proof that the down payment was made in a non-cash manner (e.g.: original receipt, or, if paid electronically, a document showing that the electronic payment was confirmed). Such proof is not required if the payment was made from the accounts held with the Bank and the Bank specialist has exported the payment document from the system.
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• Other documents as the bank's specialist may request
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Early repayment
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No early repayment fee
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Late payment fines and penalties
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The interest rate specified in the loan agreement will continue to be applied to overdue loans.
Fine in the amount of 0.13 % of overdue loan/interest for each day of delay
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Other fees payable by the client
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• Fee for notarization of pledged vehicle and filing of the bank’s security interest under pledge agreement
• Fee for statement from the Police on encumbrance of vehicle
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Cooperation between the car dealer and the Bank
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Other terms can be defined under cooperation agreements with car dealers, such as interest rate, minimum advance payment and LTV, or certain terms related to interest rate might be skipped.
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*These terms have been previously known as Retail Lending Terms and Conditions under code 11RBD PL 72-03-01. Some of the Bank documents may contain references to these terms and conditions under the former name and code.
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1Availability of a cooperation agreement between the Bank and the car dealer is a required condition.
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If the client doesn’t pay within 30 days, the car dealer buys the car back to the extent of full amount of debt outstanding as of that day, if stipulated so under the Cooperation Agreement. If 30 days have not expired yet, the Bank can request the car dealer to buy the car back only if the loan is likely to be classified.
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The annual percentage rate (APR) may differ from the above specified values if there is any or a few of the following factors:
- When the property insurance is obtained by the Bank at the customer’s request
- When the borrower selects differentiated or mixed form of loan repayment
- If there are deviations from the creditworthiness criteria approved under the internal regulations of the Bank
- If additional property is pledged as collateral
- If there are other deviations
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