Car Loan

Minimum requirements to qualify for a car loan

Salaried account holders

You are eligible to apply for a car loan if you meet the below minimum criteria.

• You are an Armenian National and Resident;

and

• Have an account with HSBC Bank Armenia cjsc (hereafter the Bank) and at least 6 months employment with a company maintaining satisfactory banking relationship with the Bank, and your net monthly salary is at least AMD200,000;

or

• Have an account with the Bank and at least 6 months employment with a company maintaining accounts with other banks in RA and at least 3 months record of salary being transferred to your account with the Bank, and your net monthly salary is at least AMD200,000;

or

• Have an account with any local bank with at least 12 months employment history and salary being transferred to your account for 12 months, and your net monthly salary is at least AMD300,000.

Non-salaried account holders

You are eligible to apply for a car loan if you meet the below minimum criteria.

• You are an Armenian National;

and

• Have satisfactory account record and banking relationship with the Bank for a period of 6 months and more, and average aggregate monthly balances of your accounts during the last 6 months has been at least AMD200,000 (or equivalent in foreign currency);

or

• Have satisfactory account record and banking relationship with other local banks for a period of 12 months and more, and average aggregate monthly balances of your accounts during the last 12 months has been at least AMD300,000 (or equivalent in foreign currency).

Loan currency

• Loan is provided in AMD

Loan size

Salaried account holders

• Bank account holders - up to 20 times of net monthly salary
• Other banks’ account holders - up to 15 times of net monthly salary

Non-salaried account holders

• Bank account holders - up to 15 times of net monthly income
• Other banks’ account holders - up to 10 times of net monthly income

Notes:

• Loan amount may vary from 1 million up to 10 million
• Loan amount can not exceed 60% of the car value
• The ratio of overall loan payments to net monthly income can not exceed 60% if net monthly income is less than AMD700,000 and 70%, if net monthly income is greater than or equal to AMD700,000

Loan Term¹

• From 6 up to 60 months

Loan interest rate

Floating nominal interest rate

• Floating nominal interest rate calculated at the Bank AMD Base Rate plus fixed Interest Rate Margin of 5.5%² p.a. Interest is calculated on a daily basis on the loan outstanding balance

Fixed nominal interest rate

• For loans with fixed interest rate, the nominal interest rate will be 1% higher than the floating interest rate effective at the moment of the loan approval²
• Loans with fixed nominal interest rate are being provided only at the Bank’s discretion

Loan account service fee

The following one-off account service fee will be charged to the customer’s account

• AMD50,000 if the loan amount is less than or equal to AMD 5 million
• AMD100,000 if the loan amount is more than AMD 5 million

Account service fee is charged on the loan drawdown day

Loan repayment

The following repayment options are available for the borrowers:

• Principle is repaid in equal monthly installments, while interest amount decreases with the repayment of a principal. Therefore, monthly repayments will decrease over the loan tenor.
• Repayments are calculated on annuity basis, where both principle and interest monthly repayment amounts change over the loan tenor, while the total monthly repayment amount remains constant. Monthly payments are being maid every month on the loan drawdown day.

Note: The accrued interest will be billed monthly and is subject to payment in AMD, along with the monthly principal amount repayment.

¹ Customer’s minimum age is 21. Customer’s age plus the loan term should not exceed 65 years.
² Depending on risk assessment results, loan application may be approved at a higher interest rate.