| Loan elements | Loan description |
|---|---|
| Loan terms1 | 24 - 240 months |
| Loan amount | AMD 5 - 200 million or USD 10 - 400 thousand |
| Loan currency |
AMD and USD. Loans in USD can be provided only in case the customer meets all applicable requirements against lending in foreign currency. Explore details. |
| Interest rate2 | Annual nominal interest rate - floating
Important: The nominal interest rate may be changed in case of bank retail base rate changes (RBR), no more than twice a year. Maximum and minimum thresholds of +/-7 percentage points are set for the nominal interest rate of the loan, which cannot be exceeded during the whole lifecycle of the loan.
For AMD loans, this is calculated at the Bank’s AMD retail base rate plus constant margin and is currently equal to:
9% + 3.5% = 12.5%
Where:
9% is the Bank’s AMD Retail Base Rate 3.5% is the Constant margin
Annual percentage rate is starting from 13.48% up to 16.10%:
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.
For USD loans, this is calculated at the Bank’s USD retail base rate plus constant margin and is currently equal to: 3.2% + 4.8% = 8% Where:
3.2% is the Bank’s USD Retail Base Rate 4.8% is the Constant margin Annual percentage rate is starting from 8.59% maximum up to 10.70%. Loan interest amount is calculated based on the annual nominal interest rate, whereas the annual percentage rate or APR indicates how much the loan would cost to the 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 to Value Ratio |
Loan amount cannot exceed 90% of the purchased property value. Minimum prepayment amount in case of lending in AMD is 10%3, and in the case of USD loans is 30%4. |
| Loan provision fee (one-off) |
0.5% of the loan amount, up to a maximum of AMD 200,000. The loan provision one-off fee will be charged from the customer's account on loan provision day. |
| Loan elements | Loan terms1 |
|---|---|
| Loan description | 24 - 240 months |
| Loan elements | Loan amount |
| Loan description |
AMD 5 - 200 million or USD 10 - 400 thousand |
| Loan elements |
Loan currency |
| Loan description |
AMD and USD. Loans in USD can be provided only in case the customer meets all applicable requirements against lending in foreign currency. Explore details. |
| Loan elements | Interest rate2 |
| Loan description |
Annual nominal interest rate - floating
Important: The nominal interest rate may be changed in case of bank retail base rate changes (RBR), no more than twice a year. Maximum and minimum thresholds of +/-7 percentage points are set for the nominal interest rate of the loan, which cannot be exceeded during the whole lifecycle of the loan.
For AMD loans, this is calculated at the Bank’s AMD retail base rate plus constant margin and is currently equal to:
9% + 3.5% = 12.5%
Where:
9% is the Bank’s AMD Retail Base Rate 3.5% is the Constant margin
Annual percentage rate is starting from 13.48% up to 16.10%:
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.
For USD loans, this is calculated at the Bank’s USD retail base rate plus constant margin and is currently equal to: 3.2% + 4.8% = 8% Where:
3.2% is the Bank’s USD Retail Base Rate 4.8% is the Constant margin Annual percentage rate is starting from 8.59% maximum up to 10.70%. Loan interest amount is calculated based on the annual nominal interest rate, whereas the annual percentage rate or APR indicates how much the loan would cost to the 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 elements |
Loan to Value Ratio |
| Loan description |
Loan amount cannot exceed 90% of the purchased property value. Minimum prepayment amount in case of lending in AMD is 10%3, and in the case of USD loans is 30%4. |
| Loan elements |
Loan provision fee (one-off) |
| Loan description |
0.5% of the loan amount, up to a maximum of AMD 200,000. The loan provision one-off fee will be charged from the customer's account on loan provision day. |
Please read the Loan Terms and Conditions before applying.
Loan repayment
The following repayment options are available for the borrowers:
- principal is repaid in equal monthly instalments, 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
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 within 3 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.
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.
Interest amount calculation
Interest amount will be calculated on a daily basis by using the following formula:
I = R*L/365 (or 366 in case of leap year), where
I = one day interest amount
R = current interest rate
L = outstanding amount of loan
Representative example of interest amount calculation
House purchase loan in AMD with reducing repayment type was provided to the customer.
- loan amount: AMD 50,000,000
- loan term: 240 months
- annual interest rate: 11.5%
- annual percentage rate:12.55%
- days in a year: 365/366
- loan provision date: 01/09/2022
- first repayment date: 05/10/2022
- loan full repayment date: 05/09/2042
- loan provision one-off fee: AMD 200,000
- monthly repayments
repayment for the first month - AMD 743,949.77 (out of which - interest amount AMD 535,616.44)
repayment for the second month - AMD 694,654.68 (out of which - interest amount AMD 486,321.35)
repayment for the last month - AMD 210,368.15 (out of which - interest amount AMD 2,034.82)
Interest amount for the whole period of loan is AMD 57,798,699.92
Things you should know
Financial directory (website in Armenian)
Your Financial Directory is an electronic search and comparison tool for services offered to individuals to ease the process of making the most effective choice for you.
You can apply for the loan both at HSBC main office and branches. Find the most convenient office or a branch.
1 Customer's minimum age must be 18. Customer's age plus the loan term should not exceed 65 years. The borrower must be a citizen/resident of the Republic of Armenia. Within the framework of this offer, people with a minimum 1 year of residence in Armenia proven by respective documents are considered as Armenian residents.
2 Depending on risk assessment results, loan application may be approved at a higher interest rate.
3 Debt to Income Ratio for AMD loans is 60% to 70% depending on income.
Last updated on: 03.05.24, 08:13