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Home Renovation Loan
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Purpose
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Purpose
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(i) Renovation of residential property, or (ii) transfer of a loan for renovation 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 the loan agreement will not have exceeded 65, otherwise a co-borrower or guarantor is required. The eligible age of the co-borrower or guarantor is 18-65 provided that at the time of expiry of the 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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For loans in AMD: citizens and non-citizens of Armenia who are resident in Armenia
For loans in foreign currency: non-resident individuals
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Loan terms
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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 included**
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Fixed
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Fixed
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Fixed
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14.0%
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11.5%
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9.0%
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Annual percentage rate***, property insurance included
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Fixed
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Fixed
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Fixed
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14.95-16.21%
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12.15-13.95%
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9.4-11.1%
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Term (months)
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61-240
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Nominal annual interest rate, property insurance included**
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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 9.0% + 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 included
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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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14.93-16.19%
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11.02-12.78%
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8.84-10.51%
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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 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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If the client prefers a lending option without the 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 applicable interest rate may be increased by 0.25%.
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Lump sum disbursement fee
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N/a
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Cashing of the loan amount by the borrower
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AMD: Free
Other currency: 0.5 %
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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 collateral
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1. The loan is secured by the real estate 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 renovate 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%** (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%** (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. up to 100% of the value of cash in Ameriabank or bonds issued by Ameriabank.
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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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Appraisal of the collateral
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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 guarantees of individuals and/or companies as additional security.
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Insurance of the collateral
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Insurance of the collateral
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The insurance of the pledged real estate is to be obtained only if the market value of the property is above AMD 100 million or the real estate being pledged is an apartment in Yerevan.
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
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Term of fulfillment of conditions of loan
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Term of fulfillment of conditions of loan
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6 months after disbursement of the last loan installment, unless otherwise determined by the relevant authority of the Bank
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Required documents
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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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• 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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• Initial real estate appraisal report
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• Other documents as the bank's specialist may request
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• Renovation costs estimate
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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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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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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
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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) and filing of the bank’s security interest under pledge agreement
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1These 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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**Depending on the creditworthiness of the borrower, term of loan and LTV ratio, a higher or lower interest rate can be applied.
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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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****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%.
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*****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.
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