Car loans for secondary market | Ameriabank
My Ameria
ՆՈՐ
Մոբայլ բանկինգ
loan amount icon
AMD 3 - 50 million

Loan amount

loan term icon
60 months

Term

percentage-icon
19.88-21.38%

Actual percentage rate

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At least 20%

Minimum down payment

Car lending for the secondary market

If you want to buy a car from the secondary market, we are here to help you with financing. You may directly obtain your car loan from the secondary market or you can transfer your secondary market car loan from another bank or credit organization to Ameriabank.

ADVANTAGES


CASCO at the expense of the Bank

No loan service fees

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Consumer loan for purchase of a vehicle on the secondary market

Purpose

Purchase of a vehicle on secondary market or transfer of a car loan from another bank/credit organization to Ameriabank

Eligible age of client/co-borrower/guarantor

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.

Residency

Citizens and non-citizens of Armenia who are resident in Armenia

Currency

AMD

Minimum and maximum loan limit

AMD 3 million - AMD 50 million

Term (months)

60 months

Nominal annual interest rate

Fixed
18%

Annual percentage rate (APR)

19.88-21.38%

Other terms related to the interest rate

Where insurance is obtained by the client, the interest rate is decreased by:
- 2% if the loan is secured by vehicles,
- 0.05% if the loan is secured by real estate,
considering the share of each type of collateral in total collateral.                                                                                                

If repayment schedule is differentiated or mixed, the applicable interest rate is increased by 0.5%.

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%.

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%.

Where the client chooses a repayment option without early repayment fee for loans exceeding AMD 15 million, the interest rate is increased by 2% (not applicable to loans secured by cash/bonds).

In case of other deviations, the applicable interest rate may be increased by 0.25%.

Lump sum disbursement fee

 0.5% of the loan principal or AMD 50,000, whichever is greater

Cashing of the loan amount by the borrower

Free

Minimum down payment

At least 20% of purchase price of the vehicle

Repayment1

Annuity (equal monthly installments consisting of a portion of loan and a portion of interest)

Differentiated (monthly repayment of equal portions of principal amount while interest accrues to outstanding loan and decreases each month)

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)

Eligible collateral

The loan is secured by the vehicle being purchased, as well as real estate and other vehicles to the reasonable satisfaction of the Bank, metal accounts in gold, cash and bonds issued by Ameriabank

Loan-to-value (LTV) ratio

Max 70% of the market value of the pledged vehicle.
The value of other loan security will be included in the estimation of the LTV ratio in an amount not more than:
1. Real estate: 60% if in Yerevan, 50% if outside Yerevan
2. Metal accounts in gold with Ameriabank: 80%
3. Cash in/bonds issued by Ameriabank:
-90% if currency of the collateral is the same as of the loan
-70% if currencies of the collateral and the loan are different

Age of vehicles to be pledged

Max 7 years for vehicles manufactured in foreign countries

Location of real estate to be pledged

Yerevan, regional centers of Armenia, towns where Ameriabank has branches, as well as Jrvezh, Arinj, Dzoraghbyur, Kasakh, Tsaghkadzor, Masis and Yeghvard

Property appraisal

Pledged vehicles and real estate to be appraised by an appraising partner of the bank.

Additional security

The Bank may request guarantees of individuals and/or companies as additional security.

Insurance of the collateral1

Insurance of the pledged real estate and 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

Required documents

Required documents filed together with the loan application

• Loan application

• ID [original]

 • Certificate of ownership of property to be purchased/pledged [copy]

Documents required after initial approval

 • Proof of employment and/or other income

 • Marriage (divorce, spouse death), birth certificate (original)

• Certificates of registration and ownership certificates of vehicles to be pledged (original)

• Certificate of title to real estate to be pledged (original)

• Initial report on appraisal of real estate/vehicle

Documents required after loan approval

•  Copies of bases of title to real estate (to be submitted upon request)

• IDs of owners of property to be purchased/pledged [originals]

• Copies of marriage (divorce, spouse death) certificates of owners of property to be pledged

• Statement from the State Committee of Real Estate Cadaster on encumbrance of real estate (unified statement)

• Statement, issued by the Police, on encumbrance of vehicle

• Real estate appraisal report (final)

• Real estate/vehicle insurance policy

• 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.

• Other documents as the bank's specialist may request

Early repayment fee

5% of the prepaid amount, chargeable if the loan is prepaid, whether in whole or in part, during the first 3 years of the loan term. Applicable to loans exceeding AMD 15 million. Not applicable to loans secured by cash or bonds.

Late payment fines and penalties

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

Other fees payable by the client


• Fee for unified statement from the State Committee of Real Estate Cadaster of the Government of the Republic of Armenia
• Fees for notarization of pledge (real estate or vehicle) and filing of the bank’s security interest under pledge agreement
• Fee for statement from the Police on encumbrance of vehicle

*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.

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

 

Loan service fees, including fees for modification of the loan terms and substitution of the collateral, are presented at the link below.
Purpose (AMD)
Modification of loan terms and conditions 15,000
Change of real estate pledge (including change of pledge owner) 10,000
Change of vehicle pledge (including change of pledge owner ) 5,000
Provision of pledge-related consent/permissions/references 5,000 (VAT inclusive)
Change of due date 5,000


These fees apply if changes are initiated by the client. Where several fees are payable due to a single change, only the highest of them shall be charged for one time. These fees do not apply to loans secured by cash, bonds and metal accounts. Where a new collateral or guarantor is added due to the change of pledge, the fee is not charged.


The client will pay for the following services:

  • Notary fee: AMD 14,000-16,000 lump-sum (in case of vehicles)
  • Notary fee: AMD 13,000-18,000 lump-sum (in case of real estate)
  • Fee for unified statement from the State Real Estate Cadaster on encumbrance of the property: AMD 10,000
  • Fee for registration of security interest in the real estate: AMD 26,000
  • Certificate of the right to purchase real estate and registration of the security interest: AMD 3,000 and AMD 50,000
  • Certificate of acquisition of the title to the real estate and registration of the security interest: AMD 21,000 and AMD 50,000
  • Certificate of acquisition of the title to the commercial real estate and registration of the security interest: AMD 41,000 (if the area of the premises to be purchased and pledged is above 200 sq. m) and AMD 50,000
  • Fee of the Police of the Republic of Armenia (for lien and pledge of movable property): AMD 5,000 lump sum

Collateral appraisal

The real estate should be appraised by an appraisal company cooperating with the bank. The company is selected by the client from the offered list. Appraisal fee: AMD 13,000-30,000 depending on the property. On a case-by-case basis, the fee for appraisal of major items of property may be negotiable. The list of appraisal companies cooperating with the Bank may be found at the link below.


Insurance for the pledged property to be obtained on an annual basis throughout the loan term:

  • By the bank to the extent of outstanding loan 
  • By the client at least to the extent of outstanding loan


The Bank doesn’t 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

Required documents filed together with loan application

  • Loan application
  • ID [original]
  • Certificate of ownership of property to be purchased/pledged [copy]

Documents required after initial approval

  • Proof of employment and/or other income 
  • Marriage (divorce, spouse death), birth certificate [original]
  • Certificate of title to real estate to be pledged [original]
  • Geodetic measurement report of land plot to be pledged**
  • Initial real estate appraisal report
  • Construction costs estimate

Documents required after loan approval 

  • Copies of bases of title to real estate (to be submitted upon request)
  • IDs of owners of property to be purchased/pledged [originals]
  • Copies of marriage (divorce, spouse death) certificates of owners of property to be pledged 
  • Statement from the State Committee of Real Estate Cadaster on encumbrance of real estate (unified statement)
  • Real estate appraisal report (final)
  • Other documents as the bank's specialist may request

We will provide you the statements of your credit accounts through communication channels and at frequency agreed between you and us and/or in accordance with the Armenian laws and regulations. The statements are provided by post, email, Internet-Bank or in person at any branch of the Bank. 

Provision of statements, information and copies of documents 

Service

Provision of account statements, copies of account statements or other documents kept in electronic form, backdated up to 1 year

Free

Provision of account statements or copies of account statements backdated more than 1 year or other documents kept in electronic form7

AMD 5,000 per annual statement per account, VAT included

Provision of copies of documents kept in paper or backdated more than 1 year and kept in electronic form

AMD 5,000 per document, VAT included

Provision of references

 

To holders of 3+ months old accounts6

AMD 3,000, VAT included

To holders of less than 3 months old accounts

AMD 5,000, VAT included6


Attention!

THE LOAN INTEREST RATE MAY NOT EXCEED THE DOUBLE OF THE BANK RATE DECLARED BY THE CENTRAL BANK OF ARMENIA.

Attention!

THE PLEDGED PROPERTY MAY BE FORECLOSED IF THE BORROWER FAILS TO REPAY LOAN AMOUNT AND INTEREST IN TIME. IF THE VALUE OF THE COLLATERAL IS INSUFFICIENT, OTHER PROPERTY OF THE BORROWER WILL BE ENFORCED TO REPAY THE BORROWER’S OBLIGATIONS.

Attention!

IF YOU FAIL TO PERFORM YOUR OBLIGATIONS IN A PROPER MANNER, THE LENDER WILL REPORT INFORMATION ABOUT YOUR OVERDUE OBLIGATIONS WITHIN 1-3 BUSINESS DAYS TO THE CREDIT BUREAU WHERE YOUR CREDIT HISTORY IS GENERATED. YOU ARE ENTITLED TO OBTAIN YOUR CREDIT HISTORY FROM THE CREDIT BUREAU ONCE A YEAR, AT NO COST. ATTENTION. BAD CREDIT HISTORY MAY AFFECT YOUR FUTURE ATTEMPTS TO GET A LOAN.

When you repay your overdue debt, the payment will be made in the following order:

  • Fines and penalties
  • Interest
  • Principal

Attention!

Consumers are allowed to cancel the credit agreement at their own discretion, for no particular reason, within 7 business days following its execution unless a shorter period is stipulated therein (cooling-off period). In such cases, consumers are required to pay the interest accrued at the annual percentage rate under the credit agreement. The consumer will not be required to pay any other reimbursement in relation to the cancellation of the credit agreement.

Attention!

LOAN INTEREST IS CALCULATED AT THE NOMINAL INTEREST RATE. THE LATTER SHOWS THE ANNUAL INTEREST ON THE LOAN CALCULATED AS A PERCENTAGE OF THE OUTSTANDING LOAN BALANCE. THE LOAN INTEREST IS ACCRUED TO THE OUTSTANDING LOAN PRINCIPAL IN THE LOAN CURRENCY DAILY, BASED ON A 365-DAY CALENDAR YEAR. 

THE ANNUAL PERCENTAGE RATE SHOWS THE COST OF THE LOAN IN CASE OF DUE AND TIMELY REPAYMENTS UNDER THE AGREEMENT.

Attention!

The amount of interest is calculated based on the annual nominal rate and manner of the loan repayment.

ATTENTION! “YOUR FINANCIAL DATABASE” IS AN ELECTRONIC SYSTEM AIMED AT FACILITATING SEARCHING AND COMPARISON OF THE SERVICES OFFERED TO INDIVIDUALS AND MAKING THE CHOICE EASIER FOR YOU.

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Car Loan without Visiting the Bank

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This loan product enables you to purchase a car from the primary market without visiting the Bank.

Car lending for the primary market

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You may directly obtain your car loan from the primary market or you can transfer your primary market car loan from another bank or credit organization to Ameriabank.

Last updated on 14.03.2023 17:27