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Property Secured Personal Instalment Loan main terms and conditions

The deadlines for decision making of loan application and loan provision/drawdown

  • The maximum period for making final decision and informing the applicant about the decision - within 2-5 working days after the submission of all other necessary documentation as requested by the Bank
  • The maximum period for loan provision/drawdown - within 2 working days after the receipt of pledge certificate

Default interest rate and penalties

  • 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
  • No early repayment fee is applicable

Warning and important notes

  • 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.
  • If the borrower fails or regularly delays the loan repayment or any of obligations specified in loan agreement, the bank reserves the right to repossess the pledged residential property, without recourse to the court and use the sales proceeds for full repayment of the loan outstanding amount
  • In case if the value of such pledged residential property is not sufficient to cover the borrower’s obligations, the obligations may be paid-off at the expense of the borrower’s other property, in accordance with the RA legislation
  • If the borrower does not pay the interest and loan principal amounts in time, information about credit history will be submitted to the Central Bank of Armenia credit register and ACRA Credit Reporting CJSC
  • Fluctuation of foreign currency exchange rate may impact the loan repayment amount (for USD Loans)
  • The bank makes the decision on provision of loans at its discretion taking into consideration the conformity of the loan application to the announced requirements of the given loan type as well as evaluating such essential factors as the creditworthiness of the applicant, any overdue payments, liquidity of the pledged property and other factors
  • The bank may require the customer’s obligations to be secured with guarantee at its discretion, based on risk assessment results.
  • Loan drawdown will be done after submission of pledge and insurance agreement/policy
  • The loan will be transferred to customer's bank account
  • Valuation and security pledge expenses are born by the customer. Details of expenses are available here.
  • Customers can apply for a loan at any of the Bank branches/offices
  • Bank does not compensate charges and fees applicable for documents and other transactions required for loan processing. All fees are paid by Customer

Loan approval and declination criteria

Loan approval criteria

  • Documented and stable income, which corresponds to the minimum set requirements for a particular loan type.
  • Good credit history, with number of overdue days for all loans during the recent 12 months not exceeding maximum threshold set by the Bank.
  • Full document set required for the loan process.

Loan declination criteria

  • Insufficient funds for servicing the loan, or undocumented income.
  • Information that the loan will not be used for designated purpose.
  • Incorrect and incomplete information provision as part of the loan process.
  • Bad credit history, with number of overdue days for all loans during the recent 12 months not exceeding maximum threshold set by the Bank.
  • Customer age does not meet the age related criteria for the specific loan type.

Last updated on: 18.01.23, 08:25

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