| Loan elements | Loan description |
|---|---|
| Loan terms1 | 24 - 240 months |
| Loan amount | AMD 5 - 200 million |
| Loan currency |
AMD |
| Borrower (co-borrower)2 | Citizen/resident of the Republic of Armenia |
| Interest rate3 | Annual nominal interest rate - floating
Where:
9% - Bank’s AMD Retail Base Rate 2.5% - Constant margin
Annual percentage rate starting from 12.41% up to 15.44%. Annual percentage rate starting from 12.37% up to 14.78% for PLUS/STATUS customers
|
| 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%4. |
| Loan provision fee (one-off) |
1% of loan amount (0.5% for PLUS/STATUS customers ) maximum 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 |
| Loan elements |
Loan currency |
| Loan description |
AMD |
| Loan elements | Borrower (co-borrower)2 |
| Loan description | Citizen/resident of the Republic of Armenia |
| Loan elements | Interest rate3 |
| Loan description |
Annual nominal interest rate - floating
Where:
9% - Bank’s AMD Retail Base Rate 2.5% - Constant margin
Annual percentage rate starting from 12.41% up to 15.44%. Annual percentage rate starting from 12.37% up to 14.78% for PLUS/STATUS customers
|
| 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%4. |
| Loan elements |
Loan provision fee (one-off) |
| Loan description |
1% of loan amount (0.5% for PLUS/STATUS customers ) maximum 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:
Option 1 (reducing): Principal amount is repaid in equal monthly instalments, while the interest charges decrease over time as the size of principal amount due reduces. Therefore, your total monthly repayments will decrease over the loan tenor.
Option 2 (annuity): Repayments are calculated on an annuity basis. In this instance, over the loan tenor your total monthly repayment amounts will remain consistent, however the proportion of principal loan repayments and monthly interest charges may change.
In case of overdue/default on the loan principal and/or interest the Bank will apply penalty interest rate of 5% p.a. (plus the loan nominal interest rate per annum) on the overdue amount.
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.
You have the right to obtain your credit history from ACRA credit bureau free of charge once a year.
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% (reducing)
- 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.
2 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.
3 Depending on risk assessment results, loan application may be approved at a higher interest rate.
4 Debt to Income Ratio for AMD loans is 60% - 70% depending on income.
In case of discrepancies between Armenian and English versions, the Armenian version shall prevail.
Last updated on: 30.01.23, 06:38