Property Secured Personal Instalment Loan
Property1 secured personal instalment loan is provided to finance individual accountholders to cover personal and investment purpose expenditures, including purchasing and/or construction/renovation of commercial and residential properties for buy-to-let purposes, purchasing of land plot, acquisition of business shares, excluding financing of any business activity.
- AffordableWe offer property secured loans in AMD and in USD.
- StraightforwardNo annual service fee is charged, you only pay once for receiving the loan.
- ConvenientWe process your loan application within 5 days after receiving all documents so you can have quick access to your money.
- Flexible loanChoose loan currency and term to best suit your needs.
In case customer’s income and loan currency are both in AMD, the following ratio will apply:
- 60%, if net monthly salary / income is < AMD700,000
- 70%, if net monthly salary/ income is ≥ AMD700,000
In case customer's loan currency is in USD, the following ratio will apply:
- In case customer’s USD income comprises 50% or more of their monthly income, the following ratio will apply: 40%, if net monthly salary / income is < AMD350,000 OR 50%, if net monthly salary/ income is ≥ AMD350,000
- In case customer’s USD income comprises less than 50% of their total income, USD loan amount and debt-to-income ratio (DIR) will be calculated so that monthly loan repayment amount in USD is fully matched by the USD share in customer’s total income subject to DIR, and the following will apply: 40%, if net monthly salary / income is < AMD350,000 OR 50%, if net monthly salary/ income is ≥ AMD350,000
- AMD 3 million – AMD 10 million (or equivalent in USD): in this case relevant documents supporting loan purpose may not be required
- AMD 10 million - 100 million2 or (equivalent in USD): in this case loan purpose should be supported by relevant documentation (proof of purchase or investment)
Loan to Value Ratio
For loans in AMD:
Amount of secured loan with property pledge cannot exceed 70% of the property value if located in Yerevan and prospective suburbs and 50%, if located elsewhere in Armenia.
For loans in USD:
Amount of secured loan with property pledge cannot exceed 60% of the property value if located in Yerevan and prospective suburbs and 30%, if located elsewhere in Armenia.
Loan provision fee3
For AMD loans
1% of loan amount maximum AMD 100,000.
Loan provision fee will be charged from the customer's account on loan provision day.
For USD loans
1% of loan amount (equivalent in AMD), maximum AMD 100,000.
Loan provision fee will be charged from the customer's account on loan provision day.
In case charged in foreign currency, Bank respective rate for subject currency is being applied.
Loan is provided in AMD and USD4.
From 24 months to 60/1206 months.
Floating annual nominal interest rate
Loans in AMD:
Floating annual nominal interest rate is calculated as HSBC Armenia AMD retail base rate plus constant margin of 5%p.a. and is currently equal to:
9% + 5% = 14%
Annual percentage rate for loans in AMD - 15.24% - 19.50%.
The maximum annual percentage rate cannot exceed double of the CBA benchmark rate.
Loans in USD:
Floating annual nominal interest rate is calculated as HSBC Armenia USD retail base rate plus constant margin of 9.3% p.a. and is currently equal to:
2.7% + 9.3% = 12%
Annual percentage rate for loans in USD - 12.99% - 17.22%.
For the calculation of APR the foreign exchange rate published on Central Bank official website is being used. The APR may vary as a result of the above-mentioned rate change.
LOAN INTEREST AMOUNT IS BEING CALCULATED BASED ON THE ANNUAL NOMINAL INTEREST RATE, WHEREAS THE ANNUAL PERCENTAGE RATE OR APR INDICATES HOW MUCH WOULD LOAN COST TO BORROWER IN CASE OF REPAYMENT OF INTEREST AMOUNT AND OTHER PAYMENTS UNDER THE DEFINED TIMELINE AND TERMS.
- Loan interest is calculated in the loan currency on a daily basis for 365 days and for 366 days in case of leap year on the loan outstanding balance
- Accrued interest for the loans in foreign currency is subject to repayment with the loan currency or in AMD along with the monthly principal amount
In case you have outstanding obligations towards the creditor, the following repayment order will apply, when you fulfil your obligations:
Default interest rate and penalty
- In case of overdue/default on loan principal and/or interest the Bank will apply penalty interest rate - 5% p.a. plus the loan nominal interest rate per annum, on the overdue amount.
Early repayment scheme
No early repayment fee is applicable.
You can make loan early repayments by decreasing the outstanding loan amount as follows:
- By equally reducing the amount of monthly payments and leaving the loan term fixed, or
- By reducing the loan term by leaving monthly payments fixed.
IN CASE OF EARLY REPAYMENT, THE TOTAL COST OF THE LOAN, INCLUDING LOAN PROVISION FEE, WILL BE PROPORTIONALLY DECREASED BY THE BANK.
- Property is pledged to the Bank (firm pledge) until the full repayment of the loan
- Borrower must provide pledged property insurance opting from the list of insurance companies acceptable for the Bank. The insurance policy should be reissued every year within the whole term of agreement. Should the borrower fail to arrange the insurance, the Bank will arrange insurance at the borrower's cost8
- Beneficiary rights of the insurance policy will be entitled to the Borrower
- Insurance can be done either by full market value of the property or by loan amount upon borrower’s discretion. If the property is insured for part of its value insurance compensation will be paid in the same proportion ratio of the sum insured and the property's full market value
- The Bank reserves the right to demand early repayment of the loan, if insurance terms of the pledged residential property9 specified in residential property mortgage agreement are breached
The bank will provide customers with statements for their loan accounts in the manner and terms stipulated by the RA legislation. The statements can be delivered to the customer's postal address, sent via email or collected from any branch of the bank. You can familiarise yourself with the conditions, terms and fees for provision of statements, copies of statements or other information by referring to Tariff of Charges and Terms and Conditions.
BEFORE SIGNING THE LOAN AGREEMENT, INDIVIDUAL BULLETIN TO BE PROVIDED AS PER CENTRAL BANK OF ARMENIA REGULATION 8/05 "ON BUSINESS CONDUCT RULES OF FINANCIAL ORGANIZATIONS".
We would also like to inform you that there may be differences between the Individual Bulletin and mortgage lending agreements due to changes in the repayment schedule and (or) the exchange rate.
The terms of the Individual Bulletin are valid for 10 working days after informing you, as a consumer, about the positive decision of the credit application. In case the consumer (guarantor) wants to sign the Individual Bulletin immediately, the Bank gives sufficient time to the consumer (guarantor) to read the Individual Bulletin in detail. If the consumer submits the signed Individual Bulletin to the Bank later than the established term, the Bank decides whether to sign the lending or mortgage lending agreement under those conditions in accordance with its internal legal acts or no.
ATTENTION: IN CASE OF NOT MAKING YOUR LOAN MONTHLY REPAYMENTS IN LINE WITH THE LOAN SCHEDULE YOU CAN BE DEPRIVED OF RIGHTS AGAINST PLEDGED PROPERTY. INFORMATION ABOUT DELAY WILL BE SUBMITTED TO CENTRAL BANK OF ARMENIA AND ACRA CREDIT REPORTING CJSC WITHIN THREE WORKING DAYS, RESULTING IN NEGATIVE IMPACT ON YOUR CREDIT HISTORY, SHOULD YOU DECIDE TO APPLY FOR ANOTHER LOAN IN THE FUTURE. YOU HAVE A RIGHT TO OBTAIN YOUR CREDIT HISTORY FROM CREDIT BUREAU FREE OF CHARGE ONCE A YEAR.
1Land can be accepted as a pledge only at bank’s discretion.
2AMD 10 million – AMD 100 million (or equivalent in USD) amount is considered only for investment purpose loans. Loan purpose supporting documentation should be provided.
3For HSBC Plus and HSBC Status customers one-off loan provision fee is 0,5% of loan amount, maximum AMD 100,000.
4Loans can be provided in USD if loan purpose is property purchase (including commercial one), renovation, and/or reconstruction. Loan purpose supporting documentation should be provided. Loans in USD can be provided only to customers who have income in USD (full or partial), or whose income in AMD is linked to USD exchange rate. The Bank may require documents evidencing the income currency, or the income link to USD exchange rate.
5Customer's minimum age is 18. Customer's age plus the loan term should not exceed 65 years.
661-120 month loan term is considered only for investment purpose loans. Loan purpose supporting documentation should be provided.
7Depending on risk assessment results, loan application may be approved at a higher than stated interest rates.
8Cost of property insurance may vary from 0.16% to 0.18% of property valuation amount.
9Valuation and security pledge expenses are born by the customer.
You are eligible to apply for a property secured personal loan if you're an Armenian National or RA resident1 ; and meet the minimum criteria for salaried and non-salaried account holders.
Salaried account holder criteria
You must have:
- an account with us
- at least 3 months employment with a company maintaining satisfactory banking relationship with us or other banks in RA
- a net monthly salary of at least AMD 50,0002;
Your salary should be transferred to your account with us after loan provision (in case if prior salary transfer is not required by the Bank3).
If you don't have account with us, you must have:
- an account with another bank
- at least 3 months employment history
- a salary transferred to your account for 3 months
- a net monthly salary of at least AMD 200,000
Non- salaried account holder criteria
You must have a satisfactory banking relationship with us or other local banks for 3 months and more, and your last 3 months average monthly balance and average balance for the last month must be at least:
- AMD 100,000 (or equivalent in other currency) if your account is with us
- AMD 250,000 (or equivalent in other currency) if you account is with another bank
1Persons with minimum 1 year of residence in Armenia proven by respective documents are considered as Armenian residents.
2Customer's overall monthly income should not be less than AMD 100,000.
3The requirements on salary transfer to your account with the Bank will be communicated to you during the loan approving process.