Residential property renovation loan in AMD

Loan terms1
From 24 months up to 120 months.
Loan amount
From AMD 2 million up to AMD 35 million.
Loan to Value Ratio

Loan amount cannot exceed:

  • 50% of the property value in case if property is located in Yerevan or prospective suburbs
  • 25% of the property value, if property is located elsewhere in Armenia
Debt to Income Ratio
The ratio of overall loan payments to net monthly income cannot exceed 60% if net monthly income is less than AMD 700,000 and 70%, if net monthly income is greater than or equal to AMD 700,000.
Interest rate2

Floating annual nominal interest rate is calculated at Bank's AMD base rate plus fixed Interest Rate Margin and it is currently equal to:

9.5% + 2.5% = 12%3

Where:

9.5% - Bank’s AMD Base Rate

2.5% - Fixed interest Rate Margin for purchase and renovation loans in AMD

Annual percentage rate starting from 12.68% maximum up to 12.70%
Annual percentage rate starting from 11.57% maximum up to 11.59% for PLUS and STATUS customers.



 

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.

Loan account service fee (one off)4
  • AMD 50,000 if the loan amount is less than or equal to AMD 10 million.
  • AMD 100,000 if the loan amount is more than AMD 10 million.

Account service fee will be charged from the customer's account on loan provision day.

Residential property renovation loan in AMD

Loan terms1
Loan amount
From 24 months up to 120 months.
From AMD 2 million up to AMD 35 million.
Loan terms1
Loan to Value Ratio
From 24 months up to 120 months.

Loan amount cannot exceed:

  • 50% of the property value in case if property is located in Yerevan or prospective suburbs
  • 25% of the property value, if property is located elsewhere in Armenia
Loan terms1
Debt to Income Ratio
From 24 months up to 120 months.
The ratio of overall loan payments to net monthly income cannot exceed 60% if net monthly income is less than AMD 700,000 and 70%, if net monthly income is greater than or equal to AMD 700,000.
Loan terms1
Interest rate2
From 24 months up to 120 months.

Floating annual nominal interest rate is calculated at Bank's AMD base rate plus fixed Interest Rate Margin and it is currently equal to:

9.5% + 2.5% = 12%3

Where:

9.5% - Bank’s AMD Base Rate

2.5% - Fixed interest Rate Margin for purchase and renovation loans in AMD

Annual percentage rate starting from 12.68% maximum up to 12.70%
Annual percentage rate starting from 11.57% maximum up to 11.59% for PLUS and STATUS customers.



 

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.

Loan terms1
Loan account service fee (one off)4
From 24 months up to 120 months.
  • AMD 50,000 if the loan amount is less than or equal to AMD 10 million.
  • AMD 100,000 if the loan amount is more than AMD 10 million.

Account service fee will be charged from the customer's account on loan provision day.

Please read loan Terms and Conditions before applying.

1Customer's minimum age is 18. Customer's age plus the loan term should not exceed 65 years.

2Depending on risk assessment results, loan application may be approved at a higher interest rate.

3Floating annual nominal interest rate for PLUS and STATUS customers is equal to 11% (9.5%+1.5%, where 9.5% is the Bank’s AMD Base Rate, 1.5% - fixed margin)

4Not applicable for PLUS and STATUS customers

You are eligible to apply for a residential property renovation loan if you meet the below minimum criteria

Salaried account holders

  • You are an Armenian national or Armenian resident1

and

  • Have an account with HSBC Bank Armenia CJSC (hereafter the Bank) and at least 3 months employment with a company maintaining satisfactory banking relationship with the Bank, and your net monthly salary is at least AMD 200,000

or

  • Have an account with the Bank and at least 3 months employment with a company maintaining accounts with other banks in RA, and your net monthly salary is at least AMD 200,000. Salary should be transferred to your account with the Bank after loan drawdown (in case if prior salary transfer is not required by the Bank)2

or

  • Have an account with any other bank with at least 3 months employment history and salary being transferred to your account for 3 months, and your net monthly salary is at least AMD 250,000

Non-salaried account holders

You are an Armenian national or Armenian resident1

and

  • Have satisfactory account record and banking relationship with the Bank for a period of 3 months and more, and the last 3 months average monthly balance and average balance of the last month have been at least AMD 200,000 (or equivalent in other currency)

or

  • Have satisfactory account record and banking relationship with other banks for a period of 3 months and more, and the last 3 months average monthly balance and average balance of the last month have been at least AMD 250,000 (or equivalent in other currency)

1 Persons with minimum 1 year of residence in Armenia proven by respective documents are considered as Armenian residents.

2 The requirements on salary transfer to your account with the Bank will be communicated to you during the loan approving process.

Loan repayment

The following repayment options are available for the borrowers:

  • Principal 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 principal and interest monthly repayment amounts change over the loan tenor, while the total monthly repayment amount remains constant.

Your property may be repossessed in case you do not properly meet your loan obligations.

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 and ACRA Credit Reporting CJSC after three business days of credit facility overdue, resulting in negative impact on  borrower’s credit history, should the borrower decide to apply for another loan in the future. In case of existence the reporting is applicable for guarantors and co-borrowers as well.

Interest amount calculation

Interest amount will be calculated on a daily basis by using the following formula:

I = R*L/365, where

I = one day interest amount

R = current interest rate

L = outstanding amount of loan

Representative examples of interest amount calculation

Example 1. House purchase loan in AMD with annuity repayment type was provided to the customer.

  • Loan amount - AMD 25,000,000
  • Loan term - 120 months
  • Annual interest rate - 12%
  • Annual percentage rate - 13.16%
  • Days in a year - 365/366
  • Loan provision date - 01/03/2019
  • First repayment date - 01/04/2019
  • Loan full repayment date - 01/03/2029
  • One-off service fee for the loan - AMD 100,000
  • Monthly repayment amount AMD 358,677.37, out of which

Interest amount for the first month - AMD 254,794.52

Interest amount for the second month - AMD 245,550.74

Interest amount for the last month - AMD 3,577.92

Interest amount for the whole period of loan is AMD 18,074,857.98

Example 2. House purchase loan in AMD with Reducing repayment type was provided to the customer.

  • Loan amount - AMD 25,000,000
  • Loan term - 120 months
  • Annual interest rate - 12%
  • Annual percentage rate - 13.23%
  • Days in a year - 365/366
  • Loan provision date - 01/03/2019
  • First repayment date - 01/04/2019
  • Loan full repayment date - 01/03/2029
  • One-off service fee for the loan - AMD 100,000
  • Monthly repayments

Repayment for the first month - AMD 463,127.85, (out of which - interest amount AMD 254,794.52)

Repayment for the second month - AMD 452,853.88 (out of which - interest amount AMD 244,520.55)

Repayment for the last month - AMD 210,251.14 (out of which - interest amount AMD 1,917.81)

Interest amount for the whole period of loan is AMD 15,135,386.44

Things you should know

In case loan monthly repayments are not processed in line with the loan schedule and loan agreement and in case you do not properly meet your loan obligations, your property may be repossessed and you may be deprived of your rights over it.

Contact us

In branch

By phone

Call us at +347 60 655 000.

Lines are open 24/7.

Last updated on: 10/4/2019 03:49:11