Investment loan | Ameriabank
My Ameria
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Մոբայլ բանկինգ

Investment Loan

A better future for yourself and people around you

We offer this unique opportunity to you, a loan to acquire equity in Armenia-based businesses.

You can use the loan to buy existing stock/equity and/or subscribe to new issues.

You can get involved in a business in Armenia either by purchasing equipment or other property or in any manner allowed by the legislation of Armenia, including through the execution of any contract permitted by the Civil Code of Armenia. This extends as well to share contributions to cooperatives operating or incorporated in Armenia.

  • Collateral insurance by the Bank
  • No loan service fees
  • Loans available in 3 currencies


AMD 3-150 million

Loan amount

36-240 months

Duration

Collateral

Real estate, vehicles, cash, or bonds issued by Ameriabank

3. Investment loan   

 

Purpose

Purpose

(i) Obtaining equity share in Armenia-based companies via purchase of their shares/stocks or subscription to new shares/stocks

 

(ii) Involvement in Armenia-based businesses, including via purchase of property, plant and equipment and their use to get involved in business in any manner allowed under Armenian legislation, including through execution of any contract allowed under Armenian civil law,
as well as share contribution to cooperatives based or incorporated in Armenia.

 

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

 

Terms of loan

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)

 36-60

 

Annual interest rate

Adjustable fixed (rate can be changed starting from the 13th month)

Fixed

Adjustable fixed (rate can be changed starting from the 13th month)

Fixed

Adjustable fixed (rate can be changed starting from the 13th month)

Fixed

 

Fixed component 5% + variable component (base rate)

16.0%

Fixed component 9% + variable component (base rate)

13.0%

Fixed component 8.5% + variable component (base rate)

10%

 

Term (months)

61-120

 

Annual interest rate

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

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

Fixed

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

Fixed

 

Fixed component 5.25% + 

variable component (base rate)

Fixed component 9.25% + variable component (base rate)

13.25%

Fixed component 8.75% + variable component (base rate)

10.75%

 

Term (months)

121 - 240

 

Annual interest rate

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 9.5% + variable component (base rate)

Fixed component 9.0% + variable component (base rate)

 

Other terms related to interest rate

Where the client wishes that insurance of pledge should be obtained by the bank, the rate of interest is increased by:
• 2.5% if the pledge is vehicle, or
• 0.5% if the pledge is plant and equipment.
Where the insurance of real estate is obtained by the client, the interest rate is reduced by 0.05%, based on the share of each type of assets in the total collateral.

 

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 +2% (not applicable to loans secured by cash or bonds).

 

 

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

 

 

Loan disbursement upfront fee

0.5% of the loan principal or AMD 50,000, whichever is greater

 

 

Cashing of loan amount by the borrower

AMD: Free
Foreign currency: 1%

 

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

Real estate, vehicles to the reasonable satisfaction of the bank, metal accounts in gold, cash and bonds issued by Ameriabank

 

Maximum loan-to-value (LTV) ratio (if the loan is secured by real estate, vehicles or plant and equipment, calculation is based on their liquidation value)

The value of the loan security shall be included in the estimation of the LTV ratio in an amount not more than:
1. Real estate: 80% if in Yerevan, 70% if outside Yerevan
2. Vehicles: 60%
3. Property and equipment: 40%, but not more than 30% of the value of aggregate pledge
4. Metal accounts in gold with Ameriabank: 80%
5. Cash collateral/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

 

Location of real estate to be pledged

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

 

Age of vehicles to be pledged

Max 12 years for foreign brand vehicles other than vehicles made in Russia, China and Iran, in which case max age is 8 years

 

Appraisal of pledge

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

 

Vehicles 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 property

The insurance of real estate, vehicles and plant and equipment is 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

 
 

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]

 

Documents required after initial approval

 

 • Proof of employment and/or other income

 

 • Marriage (divorce, spouse death), birth certificate [original]

 

• Certificates of registration and ownership certificates of vehicles to be pledged [original]

 

• Certificate of title to real estate to be pledged [original]

 

• Geodetic measurement report of land plot to be pledged**

 

• Initial report on appraisal of real estate/vehicle

 

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)

 

• Statement, issued by the Police, on encumbrance of vehicle

 

• Real estate appraisal report (final)

 

• Real estate/vehicle insurance policy

 

• 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 fees

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 or vehicle) and filing of the bank’s security interest under pledge agreement
• Fee for statement from the Police on encumbrance of vehicle

 

**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.

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]
  • Certificates of registration and ownership certificates of vehicles to be pledged [original]
  • Certificate of title to real estate to be pledged [original]
  • Geodetic measurement report of land plot to be pledged
  • Initial report on appraisal of real estate/vehicle

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)
  • Statement, issued by the Police, on encumbrance of vehicle 
  • Real estate appraisal report (final)
  • Real estate/vehicle insurance policy 
  • Other documents as the bank's specialist may request

Loan service fees, including fees for modification of the loan terms and substitution of the collateral, are presented at the link below.
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 (VAT inclusive)
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.

Collateral appraisal

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 of pledged property

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

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.


Old Terms

Last updated on 28.09.2021, 12:23