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Loan for construction of residential real estate
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Purpose
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Purpose
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(i) Construction of residential property, or (ii) transfer of a loan for construction of residential property from another bank/credit organization to Ameriabank CJSC
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Client's personal details
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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 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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Terms of loan
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Currency
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AMD
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USD
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EUR
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Minimum and maximum loan limit
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AMD 3,000,000 - AMD 150,000,000
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USD 5,000 - USD 300,000
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EUR 5,000 - EUR 300,000
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Loans are disbursed by installments. Each disbursement is subject to proper use of previous disbursement for its intended purpose by the borrower, except where the amount of loan is AMD 7 million or less or the loan has been transferred from another bank, in which cases the sum is disbursed lump-sum.
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Term (months)
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60
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Nominal annual interest rate (including property insurance)1
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Fixed
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Fixed
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Fixed
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13.0%
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10.5%
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8.5%
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Annual percentage rate (including property insurance)
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Fixed
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Fixed
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Fixed
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13.82-15.06%
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11.04-12.49%
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8.85-10.12%
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Term (months)
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61-240
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Nominal annual interest rate (including property insurance)1
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Adjustable fixed (rate can be changed starting from the 37th month)
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Adjustable fixed (rate can be changed starting from the 37th month)
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Adjustable fixed (rate can be changed starting from the 37th month)
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Fixed component 5.5% + variable component (base rate)
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Fixed component 9% + variable component (base rate)
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Fixed component 8% + variable component (base rate)
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Annual percentage rate (including property insurance)
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Adjustable fixed (rate can be changed starting from the 37th month)
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Adjustable fixed (rate can be changed starting from the 37th month)
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Adjustable fixed (rate can be changed starting from the 37th month)
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13.8-15.04%
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9.93-11.35%
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8.3-9.55%
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Other terms related to interest rate
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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) differ 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 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%.
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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).
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Where insurance is obtained by the client, the interest rate is decreased by 0.05%.
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In case of other deviations, the interest rate may be increased by 0.25%.
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Loan disbursement upfront fee
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N/a
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Cashing of loan by borrower
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AMD: Free
Other currency: 1%
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Forms of loan repayment
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Repayment
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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 5% of contractual loan amount is repaid each year; interest payable on monthly basis)
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Security
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Eligible security
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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.
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Loan-to-value (LTV) ratio
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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.
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Location of real estate to be pledged
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Capital cities and regional centers of Armenia and Artsakh, as well as the towns of Abovyan, Etchmiadzin, Jrvezh, Arinj, Dzoraghbyur, Tsaghkadzor, Dilijan, Qajaran and Jermuk
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Appraisal of pledge
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Pledged property to be appraised by an appraising partner of the bank.
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Additional security
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The bank may request guarantee of individuals and/or companies as additional security.
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Insurance of pledged property
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Insurance of pledged property
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Insurance for pledged real estate to be obtained on an annual basis throughout loan term:
- By the bank to the extent of outstanding loan
- By the client at least to the extent of outstanding loan
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Term of fulfillment of conditions of loan
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12 months after disbursement of the last installment, unless otherwise determined by the authorized body of the bank approving the loan
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Required documents
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Required documents
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Required documents filed together with 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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• Other documents as the bank's specialist may request
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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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• Certificate of title to real estate to be pledged [original]
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• Geodetic measurement report of land plot to be pledged**
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• Real estate appraisal report (initial)
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• Construction costs estimate
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• Other documents as the bank's specialist may request
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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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• Real estate appraisal report (final)
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• Other documents as the bank's specialist may request
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Early repayment fee
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At any time during a contractual year the borrower can make an early repayment to the extent of outstanding principal amount of loan for that contractual year. A contractual year is each period of 12 months following the date of execution of credit agreement.
Where the amount of early repayment exceeds the specified limit, the following fees are charged:
• Max 0.6% of early repayment, if made during the first year of agreement
• Max 0.4% of early repayment, if made during the second year of agreement
• Max 0.2% of early repayment, if made during the third year of agreement
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Late payment fines and penalties
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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
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Other fees
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Other fees payable by 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) and filing of the bank’s security interest under pledge agreement
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