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Home Construction Loan
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Eligible age of client/co-borrower/guarantor
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18-65 provided that the age of the borrower on the date of the loan agreement expiry does not exceed 65, otherwise a co-borrower or guarantor meeting the age criteria is required
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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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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, property insurance included¹
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Fixed
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Fixed
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Fixed
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12.5%
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10.5%
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8.5%
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Annual percentage rate, property insurance included¹
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Fixed
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Fixed
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Fixed
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13.26%-14.43%
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11.03%-12.33%
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8.85%-9.9%
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Term (months)
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61-240
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Nominal annual interest rate, property insurance included¹
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Adjustable2 (rate can be changed starting from the 37th month)
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Adjustable2 (rate can be changed starting from the 37th month)
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Adjustable2 (rate can be changed starting from the 37th month)
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Fixed component 6% + variable component (base rate)
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Fixed component 9.0% + variable component (base rate)
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Fixed component 8.0% + variable component (base rate)
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Annual percentage rate, property insurance included¹
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Adjustable2 (rate can be changed starting from the 37th month)
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Adjustable2 (rate can be changed starting from the 37th month)
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Adjustable2 (rate can be changed starting from the 37th month)
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13.24%-14.41%
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11.03%-13.36%
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8.84%-9.88%
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Other terms related to the 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 loan-to-value ratio differs from the approved standard, the applicable interest rate is increased by 0.5%.
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Depending on credit history, the applicable interest rate can be increased by 0.5%.
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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 client, the interest rate is decreased by 0.05%.
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Loan disbursement lump-sum fee
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N/a
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Form of disbursement
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Credit to the account
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Loan formalization venue
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Branches and head office of the Bank
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Cashing of loan by borrower
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Free of charge
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Repayment
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Annuity (equal payments),
Differentiated (non-equal payments),
Mixed
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Repayment frequency
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Monthly
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Eligible security
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- 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 build 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.
Title to the apartment (house), right of mortgage and other property rights are subject to state registration.
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Loan-to-value (LTV) ratio
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Maximum loan amount is 100% of the lower of the two: appraised liquidation value or purchase price of pledged property; or 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, Ejmiatsin, Jrvezh, Arinj, Dzoraghbyur, Tsaghkadzor, Dilijan, Qajaran and Jermuk
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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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Term of fulfillment of conditions of loan
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12 months after disbursement of the last loan installment, unless otherwise determined by the relevant authority of the Bank
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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 of delay
Information on performance of credit obligations is reported to the Credit Bureau.
In case of failure to perform credit obligations, the pledged property may be foreclosed on.
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1. Depending on the creditworthiness of the borrower and LTV ratio, a higher or lower interest rate can be applied.
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2. 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.
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