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Details of our special offer for purchasing properties at Shushi Palace Residential Complex

Residential property purchase loan

Loan elements Loan description
Loan terms1 24 - 240 months
Loan amount AMD 5,000,000 to 200,000,000 or USD 10,000 to 400,000
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 about loans in usd.
Interest rate2

Annual nominal interest rate - floating


Important: The nominal interest rate may be changed by the bank in case of bank retail base rate changes.


Floating nominal interest rate can be changed during the loan lifecycle no more than 2 times in a year. Maximum and minimum thresholds are set for the nominal interest rate of the loan, which cannot be exceeded during the lifecycle of the loan. In case of floating interest the maximum increase and decrease of the threshold of the nominal interest rate is defined as +/-7 interest point.


For AMD loans, this is calculated at the Bank’s AMD retail base rate plus constant margin and is currently equal to:


9% + 2.5% = 11.5%

 

            

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


 

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:

3.3% + 4.7% = 8%


 

Where:


3.3% - Bank's USD Retail Base Rate

4.7% - Constant margin for purchase loans in USD

 


Annual percentage rate starting from 8.59% up to 11.62%.
Annual percentage rate starting from 8.56% up to 10.99% for PLUS/STATUS customers


 

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)
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.

Residential property purchase loan

Loan elements Loan terms1
Loan description 24 - 240 months
Loan elements Loan amount
Loan description AMD 5,000,000 to 200,000,000 or USD 10,000 to 400,000
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 about loans in usd.
Loan elements Interest rate2
Loan description

Annual nominal interest rate - floating


Important: The nominal interest rate may be changed by the bank in case of bank retail base rate changes.


Floating nominal interest rate can be changed during the loan lifecycle no more than 2 times in a year. Maximum and minimum thresholds are set for the nominal interest rate of the loan, which cannot be exceeded during the lifecycle of the loan. In case of floating interest the maximum increase and decrease of the threshold of the nominal interest rate is defined as +/-7 interest point.


For AMD loans, this is calculated at the Bank’s AMD retail base rate plus constant margin and is currently equal to:


9% + 2.5% = 11.5%

 

            

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


 

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:

3.3% + 4.7% = 8%


 

Where:


3.3% - Bank's USD Retail Base Rate

4.7% - Constant margin for purchase loans in USD

 


Annual percentage rate starting from 8.59% up to 11.62%.
Annual percentage rate starting from 8.56% up to 10.99% for PLUS/STATUS customers


 

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 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:

  • 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% (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. 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% - 70% depending on income.

4 Debt to Income Ratio for USD loans is 60%.

Last updated on: 30.01.23, 06:38 

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