Subsidized loan for energy-efficient renovation

Loan type 
 Mortgage loan provided under state support for energy-efficient renovation of apartments and individual residential houses within the territory of RA
Loan purpose 
Energy-efficient renovation of an apartment/residential house
 Loan currency  
Loan terms
Type of property Annual interest rate Maximum loan term Minimum loan amount Maximum loan amount
Apartment 13% 84 months AMD 3.000.001 AMD 7.000.000
Private house 13% 84 months AMD 3.000.001 AMD 10.000.000
Annual actual interest rate
Credit allocation
Cashless in stages
Loan application review fee
  Not defined
Service fee
  Not defined
Grace period
  Not defined
Penalty for early repayment
  Not defined
 Renovated real estate
Amount of subsidized interest rate
Renovated property in border** or high mountain settlements Renovated property in rural settlements not being a border settlement Renovated property in urban settlements nor being a border settlement Renovated property in Yerevan
14%*** 12% 11% 9%
* You can get acquainted with the acting tariffs at the bank at the following link:

** No loan is provided for renovation in border settlements

*** The subsidy interest rate cannot be more than the annual interest rate of the loan

**** Provide the loans in accordance with the “Procedure for providing mortgage loans’’ of National Mortgage Company RCO CJSC and ARMECONOMBANK OJSC. Loans in the amount of AMD 275.000-3.000.000 may be also provided under this resolution, in which case the works towards energy-efficiency should amount to at least 40% of the loan amount, the loan term-60 months, the loan interest rate 13.5% per year.

*Attention. The below-mentioned meet the energy efficiency criterion:
• Thermal insulation of walls, roofs, interior door coverings;
• Acquisition of energy-efficient building materials;
• Purchase, installation of exterior doors and windows and replacement with a new one;
• Acquisition, replacement or installation of boilers or water heater (gas or electric) and heating systems (pipes, sections and etc);
• Acquisition and installation of cooling systems, energy-efficient air conditioner, air conditioner;
• Acquisition and installation of solar systems (water heater, photovoltaic);
• Acquisition of lamps and light fixtures.

*Attention. If the mortgaged and renovated apartment (residential house) was built before 2010, a technical condition inspection conclusion (not more than 10 years) is required by licensed persons on the absence of level 4 damage (the list of licensed persons in the field of technical condition inspection of buildings and structures is published on the official website of the RA Urban Development Committee: or an appraisal report issued by a person with a valid appraiser's qualification certificate and registered by the authorized body, which includes information on the technical condition (degree of damage) of the appraised property.

Attention: No more than 10% of the total amount of the loan can be used for the purchase of household appliances of at least A+ class (refrigerator, washing machine, dishwasher, electric oven, electric stove, electric water heater). The purchase of household appliances is not considered an energy efficiency measure.

*Attention. At least 80% of the expenses of using the loan and 100% of the expenses for energy-efficient measures must be done in a non-cash way and be supported by documents certifying the payment (payment order, cash register receipt, payment with invoices, bank or card transfer).
*Attention. A Co-borrower can be one or several of the  members of the Borrower’s family.

*Attention. Early loan repayment is allowed for which no fines and penalties are applied. At the customer’s choice, the Bank
reduces the size of monthly payments in proportion to early repaid amount leaving the loan repayment date unchanged
reduces the loan repayment term leaving the monthly payments unchanged.

*Attention. The borrower may lose his/her right of ownership over the apartment in case of non-fulfillment or improper fulfillment of the obligations set forth by the Mortgage agreement.

*Attention. The mortgage agreement shall be verified by notary.

*Attention. The number of total overdue days for the borrower’s and co-borrower/s/ all loans /acting and repaid/ shall not exceed 30 calendar days within the last 12 months.

*Attention. After reaching a positive decision on the loan provision, before the conclusion of the mortgage agreement,  the Bank, based on the terms and conditions of the loan offered by the Bank and the documents submitted by the consumer, provides the consumer with an Individual leaflet, which defines applicable essential terms of the mortgage loan, tariffs, the rights and obligations of the consumer, and the negative consequences in case of non-fulfillment of the obligations when due  applicable for the given consumer in case of conclusion of the mortgage agreement on the given loan.

* Attention. “Your financial directory” is an electronic system facilitating the search, comparison of the services offered to individuals and the selection of the most efficient option for you:

* Attention. The bank provides the loan agreement proposal and draft to the borrower seven days prior to signing the loan agreement.

*Attention.  The proposal on signing loan agreement is effective seven working days (thinking time), unless otherwise envisaged by proposal.

*Attention. You can get acquainted with the tariffs of other services provided within the framework of implementing loan operations by visiting the following link:

ATTENTION. On the purpose of due diligence of the customer envisaged by RA law on “On combating money laundering and terrorism financing”, the Bank may request additional documents or other information from the consumer based on <<Know your customer>> principle, as well as ask the consumer additional questions during oral communication.

ATTENTION. In compliance with the agreement signed with USA, to find out whether you are a US tax payer, the bank may collect additional information about the agreements, contracts, cooperation, membership signed by financial institutions, which may have a direct impact on the consumers (e.g. Foreign Account Tax Compliance Act (FATCA)).

ATTENTION. In case of consumer loans exceeding AMD 15.000.000 if a preterm repayment is made in the amount exceeding 20% of the Principle balance as of the first day of each month (which does not include repayment of the part of the loan envisaged by the repayment schedule of the given month) without the Bank's written consent, a penalty in the amount of 5% of the early repaid amount exceeding 20% in the amount of that amount.

ATTENTION. When applying for a loan, the Bank provides you with an individual leaflet on essential terms of consumer loan, which defines individual terms of the loan to be provided to you.

ATTENTION. As an additional means of loan security, the Bank may also require the guarantees of other person/persons.

ATTENTION. In case of non-fulfillment or improper fulfillment of your obligations the lender sends your data to the credit bureau where your credit history is being formed up to 3 business days. You are entitled with the right to get your credit history from the credit bureau free of charge once a year( )

ATTENTION. Bad credit history may prevent you from receiving other loans in the future

ATTENTION. Loan interests are calculated based on the nominal interest rate and the actual interest rate shows how much the loan will cost in case of fulfillment of loan obligations in defined terms and sizes. The actual annual interest rate calculation procedure can be found on the following link:[br]
The payments to be paid by the consumer are not included in the calculation of the actual interest rate irrespective of the fact that payments against the works and services have been made with or without a credit.

ATTENTION. The nominal interest rate may be changed by the bank. The information on the changes of the nominal interest rate may be found on 

1.You are eligible to communicate with financial institution by the means of communication you prefer – through postal services or electronically. The receipt of information electronically is the most convenient. It is available round-the-clock (24/7), is free of the risk of loss of paper information and ensures the confidentiality.

2. The possible negative consequences, penalties/fines for the customer in case of non-fulfillment of obligations
• 0, 13%a of the unpaid amount for each overdue day
• 0, 13%a of the unpaid interest amount for each overdue day

3. If you have outstanding liabilities against the creditor, while fulfilling your obligation the loan repayment arrangements are made in the following sequence:
• Court costs (if any)
• Collateral sale costs (if any)
• Accrued penalty
• Accrued interest
• Insurance costs /if any/
• Principal amount of the loan

4. Property (house, car, etc.) pledged by you may be confiscated by law in case you fail to perform your loan obligations on time.

5. In case of non- fulfillment of loan liabilities, the loan liabilities are covered by the collateral, and should the collateral be not enough to repay the borrower’s liabilities it is possible to repay the liabilities on the account of another property of the borrower and/or guarantor(s)/co-borrower/s/.

6. Loan interests are calculated towards the loan balance.
For example if the customer is provided with a loan in the amount of AMD 1.200.000 with an annual interests rate of 24% ,with 12 months period (while calculating monthly accrued interests as a number of days 30 days period has been taken as a basis).
Months Loan balance Repayment from loan Repayment from interest
1 1.200.000 100.000 23.671
2 1.100.000 100.000 21.699
3 1.000.000 100.000 19.726
4 900.000 100.000 17.753
5 800.000 100.000 15.781
6 700.000 100.000 13.808
7 600.000 100.000 11.836
8 500.000 100.000 9.863
9 400.000 100.000 7.890
10 300.000 100.000 5.918
11 200.000 100.000 3.945
12 100.000 100.000 1.973


8. The Bank applies no limits to loan amount; it will be conditioned by and related to:
• Purpose of loan
• Customer's creditworthiness
• Collateral offered by the customer
• Loan risk assessment
• Requirements of prudential standards provided by the Central Bank of Armenia

9. “ARMECONOMBANK” OJSC can provide services to the customer under terms which may differ from those set forth in the Bank's overall policy taking into account any of the following conditions of the below-mentioned list:
• Customer account balance
• Customer account turnover
• Strategic importance of the customer for the Bank
• Number of employees in customer organization
• Total number of cards issued for customer organization
• Income gained from customer
• Volume of transfers
• Size of deposits with the Bank
• Significant borrower
• Social considerations (medical organizations, educational institutions, etc.)
• Being the head of such organization
• Other objective conditions

10. The borrower pays interest to the bank for using the loan amount, the interest of which is calculated on the loan balance for the calendar days of actual use of the loan based on a 365-day year. For loans under specific projects the interest calculation may be based on a 360-day year.
• Loans are repaid within the dates indicated in the loan agreement.
• The periodicity of interest payments is determined in accordance with the loan agreement or repayment schedule.
• If the repayment date for principal or interest rates falls on day off, the payment is made on the following working day without calculation of penalty for the days off.

11. Repayment of Loans
• Loans are repaid within the dates indicated in Loan Agreement
• Loans are repaid in the currency in which they were given • In case of loans in foreign currency, exchange rate fluctuations may affect loan payments
• In case of exchange rate fluctuations, the exchange rate risk related to loans will be borne by the borrower

12. The Bank may terminate the Loan Agreement and request repayment of the loan amount, if
• The borrower has failed to make any payment required under Loan Agreement
• The borrower has breached any confirmation made by the him/her and fails to correct such breach within 30 days following the occurrence thereof
• Any presentation, warranty, document, or information provided by the borrower is materially incomplete
• By reasonable opinion of the Bank, an essential negative change has occurred in financial state of the borrower, including court orders, outflow of assets, deterioration or termination of business, company re-organization.
• The borrower undergoes dissolution, or is subject to ongoing or pending bankruptcy proceedings
• The borrower interferes with monitoring
• In case of other objective reasons

13. The Bank may accept as collateral:
• Real estate: land, houses, buildings, apartments
• Fixed assets
• Circulating assets
• Motor vehicles
• Precious metals
• Treasury bills, foreign currency, stocks
• Property to be purchased and ownership right
• Cash

14. The appraisal value of movable and immovable real estate is based on the market value indicated in appraisal statement.

15. The loan or a part thereof, as well as the accrued interest is deemed overdue if not repaid within periods specified in the Agreement.
• In case of non-repayment of the amounts (the loan, interests other payments) within the term(s) set by the Agreement, Borrower shall pay a penalty in the amount of 0.13% (zero point thirteen percent) of the overdue amount for each day of default. The total amount of the unpaid interests calculated in accordance with this paragraph shall not exceed the current debt balance.
• In case of non-repayment of the loan or a part thereof within the term(s) set by the Agreement, the Borrower is obliged to pay interests to the Bank in the amount of double of the settlement rates set by the Central Bank of Armenia. The  total amount of the unpaid interests calculated in accordance with this paragraph shall not exceed the current debt balance.
• Starting from the 91st day of overdue days, 21,5% annual interest rate is applied to the balance of non-overdue loan (term loan). After the full repayment of outstanding amounts, penalties and interests accrued, the interest rate set by the Loan Agreement is recovered.

16. The Bank shall not accept the following items as collateral:
• Non-circulating assets
• Separate parts of indivisible property
• Leasing right
• Property owned by urban, rural, and local communities
• Property with ownership right

17.To satisfy the claim of CREDITOR-PLEDGEE, the pledged property may be confiscated in extrajudicial manner pursuant to paragraphs 2-4 of these Rules in case of non-fulfillment or improper fulfillment of the obligations by PLEDGER under Collateral Agreement and by BORROWER under Loan Agreement.
  2. The property confiscated in extrajudicial manner may be sold if under the Pledge Agreement PLEDGER has authorized CREDITOR-PLEDGEE to sell the pledged property upon emergence of the grounds for confiscation as stipulated in paragraph 1 of these Rules without seeking court intervention and so fully recover the claim covered by the collateral and has also agreed to transfer without seeking court intervention the ownership of the pledged property against the respective part of main liability to CREDITOR-PLEDGEE or any person designated by the latter in the manner provided by RA legislation.
3.Upon emergence of the grounds for confiscation as stipulated in paragraph 1 of these Rules, CREDITOR-PLEDGEE shall duly notify PLEDGER in writing of confiscation of the pledged property (confiscation notice). In two months following the date of delivery of confiscation notice to PLEDGER, CREDITOR-PLEDGEE shall have the right, pursuant to Article 195 of RA Civil Code, to sell the pledged property directly or through public auction pursuant to RA Law on Public Bidding.
4. PLEDGER undertakes to transfer the pledged property to CREDITOR-PLEDGEE within two months following the date of delivery of confiscation notice to PLEDGER.
 5. The duration of process of sale of pledged property may not become a ground for cessation of growth of BORROWER's liabilities to CREDITOR-PLEDGEE. Moreover, the proceeds from sale of collateral shall be utilized to fully cover CREDITOR-PLEDGEE's claims to BORROWER existing as of the date of sale of collateral and, should the claim not be covered on the account of the collateral, the outstanding amounts may be confiscated from other property of BORROWER.
    6. Confiscation of the property pledged to cover CREDITOR-PLEDGEE's claims by court order may be executed in the manner provided by RA legislation.

18. You can get acquainted with the tariffs on any service by visiting the following link: :

19. You can get acquainted with the terms and conditions of remote banking services by visiting the following link:
Requirements for the borrower
A resident natural person over 18 years old,
Registered and residing in the Republic of Armenia,
Has a permanent source of income acceptable to the bank.
Basis of a positive decision
Positive loan history(if any),
Credibility of submitted documents,
Source of a stable and sufficient income
Բացասական որոշման հիմքերը
Negative assessment of the financial state of the client
Reliability of submitted documents
Negative credit history of the client
Other reasons that according to the Bank’s assessment will hinder the repayment of the loan
General Information
Documents to be presented by individuals
PunctCopies of passports and social security cards /family members
PunctCopy of the marriage certificate (if any)
PunctReference from workplace, including information about net salary, income tax, social security payments paid during the previous 12 months, and work books (if necessary)
PunctCopy of the certificate of ownership for the mortgaged apartment, along with a copy of the document that serves as the basis for issuing the certificate (if necessary)
PunctEstimate of repair costs, itemized by articles
PunctDetailed photos of the real estate under renovation
PunctConfirmation that the given apartment is not under foreclosure (to be submitted after loan approval)

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Updated: 05/06/2024 14:36