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Consumer loan for purchase of a vehicle on the secondary market
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Purpose
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Purchase of a vehicle on secondary market 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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60 months
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Nominal annual interest rate
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Fixed
18%
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Annual percentage rate (APR)
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19.88-21.38%
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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:
- 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.
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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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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).
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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 20% of purchase price of the vehicle
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Repayment1
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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, 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
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Loan-to-value (LTV) ratio
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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
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Age of vehicles to be pledged
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Max 7 years for vehicles manufactured in foreign countries
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Location of real estate to be pledged
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Yerevan, regional centers of Armenia, towns where Ameriabank has branches, as well as Jrvezh, Arinj, Dzoraghbyur, Kasakh, Tsaghkadzor, Masis and Yeghvard
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Property appraisal
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Pledged vehicles and real estate to be appraised by an appraising partner of the bank.
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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 collateral1
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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
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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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• Certificate of title to real estate to be pledged (original)
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• Initial report on appraisal of real estate/vehicle
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Documents required after loan approval
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• Copies of bases of title to real estate (to be submitted upon request)
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• IDs of owners of property to be purchased/pledged [originals]
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• Copies of marriage (divorce, spouse death) certificates of owners of property to be pledged
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• Statement from the State Committee of Real Estate Cadaster on encumbrance of real estate (unified statement)
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• Statement, issued by the Police, on encumbrance of vehicle
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• Real estate appraisal report (final)
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• Real estate/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 fee
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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.
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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 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
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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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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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