Commercial real estate loan | Ameriabank
Նախորդ տարբերակին անցում կատարելու համար սեղմել   այստեղ

Purchase commercial real estate

Big business starts small

Location is a key element in business. Find your ideal premises, and we will help you to acquire them. Our commercial real estate loans are a suitable option for you even if you don’t plan to do business yourself but intend to lease the property or otherwise invest in it. If you already have a loan from another bank or credit organization, you can transfer it to Ameriabank.

  • Insurance to be obtained by the Bank
  • No loan service fees
  • Loans available in 3 currencies
  • Both in Yerevan and regions

AMD 3-150 million

Loan amount

36-240 months

Term

13.25%-15.4%

Actual percentage rate

 Loan for purchase of commercial real estate   

Purpose

Purpose

(i) Purchase of commercial property for commercial, lease or investment purposes, or (ii) transfer of a loan for purchase of property for commercial, lease or investment purposes from another bank/credit organization to Ameriabank CJSC                  

Client's personal details

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 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

Loan conditions

Currency

AMD

USD

EUR

Minimum and maximum loan limit

AMD 3,000,000 - AMD 150,000,000

USD 5,000 - USD 300,000

EUR 5,000 - EUR 300,000

Term (months)

60

Nominal annual interest rate (including property insurance)1

Fixed

Fixed

Fixed

13.0%

10.5%

8.5%

Annual percentage rate (including property insurance)

Fixed

Fixed

Fixed

13.84-16.03%

11.06-13.65%

8.87-11.12%

Term (months)

61-240

Nominal annual interest rate (including property insurance)1

Adjustable fixed (rate can be changed starting from the 37th month)

Adjustable fixed (rate can be changed starting from the 37th month)

Adjustable fixed (rate can be changed starting from the 37th month)

Fixed component 5.5% + variable component (base rate)

Fixed component 9% + variable component (base rate)

Fixed component 8% + variable component (base rate)

Annual percentage rate (including property insurance)

Adjustable fixed (rate can be changed starting from the 37th month)

Adjustable fixed (rate can be changed starting from the 37th month)

Adjustable fixed (rate can be changed starting from the 37th month)

13.81-16%

9.93-12.47%

8.31-10.53%

Other terms related to the interest rate

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) differ from those approved by the internal regulations of the Bank, the applicable interest rate is increased by 0.25%.

If the creditworthiness criteria differ from those approved by the internal regulations of the Bank (any or some of the declared income related criteria, OTI and OSM), the applicable interest rate is increased by 0.25%.

If the client prefers a lending scheme without early repayment fee, the applicable interest rate is increased by 0.5% (not applicable to loans secured by cash or bonds).

Where insurance is obtained by client, the interest rate is decreased by 0.05%.

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

Loan disbursement lump-sum fee

N/a

Cashing of loan amount by the borrower or seller

AMD: Free
Foreign currency: 1%

Minimum down payment

 At least 5% of appraised market value of property

Forms of loan repayment

Repayment

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 5% of contractual loan amount is repaid each year; interest payable on monthly basis)

Security

Eligible security

1. The loan is secured by the property being purchased. The Bank may consider as additional security pledge of other real estate to the reasonable satisfaction of the bank, as well as cash in Ameriabank or bonds issued by Ameriabank.
2. If the borrower wishes to purchase property under construction without registered certificate of title, the loan will be secured by other Armenia-based real estate to the reasonable satisfaction of the Bank.
3. If the borrower wishes to purchase property abroad, the loan will be secured by Armenia-based real estate to the reasonable satisfaction of the bank.

Loan-to-value (LTV) ratio

Maximum loan amount is:
1. For AMD loans: 80%¹ (if in Yerevan) and 70% (if in the regions of Armenia) of the lower of the two: appraised market value or purchase price of pledged property,
2. For foreign currency loans: 70%¹ (if in Yerevan) and 60% (if in the regions of Armenia) of the lower of the two: appraised market value or purchase price of pledged property,                                
3. 100% of pledged cash in Ameriabank or bonds issued by Ameriabank.

Location of real estate to be pledged

Capital cities and regional centers of Armenia and Artsakh, as well as the towns of Abovyan, Ejmiatsin, Jrvezh, Arinj, Dzoraghbyur, Tsaghkadzor, Dilijan, Qajaran and Jermuk

Collateral appraisal

Pledged property to be appraised by an appraising partner of the bank.

Additional security

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

Insurance of pledged property

Insurance of pledged property

Insurance for pledged real estate to be obtained on an annual basis throughout the loan term:
- If by the Bank: to the extent of outstanding loan
- If by the client: at least to the extent of outstanding loan

 

Term of fulfillment of conditions of loan

6 months after disbursement of the last loan installment, unless otherwise determined by the relevant authority of the Bank

Required documents

Required documents

Required documents filed together with loan application

• Loan application

• ID [original]

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

• Other documents as the bank's specialist may request

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

• Other documents as the bank's specialist may request

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)

• Tax clearance certificate

• Other documents as the bank's specialist may request

 

Early repayment fee

5% of prepaid amount, chargeable if early repayment of the whole or part of loan is made during the first 3 years of loan term

Late payment fines and penalties

The interest rate specified in the loan agreement shall continue to be applied to overdue loans.
Fine in the amount of 0.13 % of overdue loan/interest for each day beyond terms

Other terms

Other fees payable by 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) and filing of the bank’s security interest under pledge agreement

  1. Depending on the creditworthiness of the borrower, term of loan and LTV ratio, a higher or lower interest rate can be applied.

**Geodetic measurement is required for any land other than fenced plots or grounds attached to house, if:- Client has applied for a loan above AMD 50 million, and- Share of credit limit to be secured by such land plot exceeds 30% of total available credit limit. For the purposes of this document total available credit limit means the sum of all loan proceeds made available to client by decision of the bank’s authorized body within acceptable LTV ratio and subject to disbursement at the given moment.

***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

Attention. The adjustable nominal interest rate may be revised no more than twice a year.

Furthermore, depending on the change of the adjustable nominal interest rate, the threshold above or below which the nominal rate cannot change is ±4%.

Attention. The consumer receives an offer of the agreement and has seven days to make a decision.

 

 

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 (ներառյալ ԱԱՀ)

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 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

Insurance Companies Cooperating with Ameriabank and Related Fees

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

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

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.

Last updated on 28.09.2021, 12:15