* To get acquainted with the current tariffs at the bank please visit: https://www.aeb.am/en/sakagner/

* In case of mortgage loans with a fixed adjustable interest rate within the framework of own resources, the loan interest rate remains unchanged during the 36 months following the moment of loan issuance and starting from the 37th month, it is transformed into a floating interest rate, changing to the refinance rate of the Central Bank in case of changes greater than +/- 1%.

** In case of mortgage loans provided by the National Mortgage Company, the borrower and the co-borrower /s/ must be members of the same family (the composition of the family members is defined in the Procedure of National Mortgage Company).

*** The age of the borrower included in the certification cannot exceed 65 years as of the deadline date of the provided loan. In the event that the age of the borrower and co-borrower(s) exceeds 65 years as of the set deadline of the loan provided, then when examining the loan case, a child or grandchild who is a possible heir of the borrower, who is not included in the certification provided by the state, will be considered as only co-borrower.

If the beneficiary family chooses the individual residential house construction component of the project, the price of the realized certificate may also include the cost of acquiring a plot of land in accordance with the model design and estimation documentation , but not more than AMD 4m.

If a positive balance arises as a result of the realization of the certificate to the right to purchase an apartment or an apartment in a building under construction or the certificate of acquisition of an individual residential house or the certificate of construction of an individual residential house and the acquisition of a plot of land, it can be realized in the following directions and limits:

1. purchase of an agricultural plot - up to AMD 5m and;
2. renovation of real estate acquired within the framework of the program - up to AMD 4m, which is increased by AMD 800 thousand for each 6th and subsequent family member, but not more than a total of AMD 8m.
   
   **** The main terms of the program are:

• All members of the beneficiary family have the citizenship of the Republic of Armenia.  
• Any type of family composition can be included in the program, who in addition to the envisaged certificate, will make a prepayment in the amount of at least 30% of the real estate value.
• The area of ​​the apartment or individual residential house to be acquired or built should not be less than 9 square meters per each member of the beneficiary family.
• The price of an apartment to be acquired or the right to buy an apartment in a building under construction or the acquisition price pf an individual residential house should not exceed AMD 55 mn.
• The ownership right to purchase an apartment or an apartment in a building under construction, or an individual residential house or an individual residential house under construction and the plot of land intended for its construction is registered in the name of all adult members of the beneficiary family.
• The right to buy an apartment or an apartment in a building under construction, or the preference right to purchase  belongs to the state in the case of expropriation of an individual residential house.
• In the case of the construction of individual residential houses, construction work can also be carried out by individuals, but on the basis of reusable exemplary design and estimate documents. That is, either the beneficiary carries out the construction itself, according to the standard design of the city planner or a design agreed with the city planner, or if he/she prefers his/her own design, the construction must be carried out by a construction company.

Attention. The following provision approved by the resolution of ARMECONOMBANK OJSC on mortgage loans does not apply to mortgage loans provided within own resources: The number of all loans/active and repaid/overdue loans of the borrower and co-borrower/s during the last twelve months should not exceed 30 calendar days.

Attention. The amount directed towards the repayment of monthly fees (Loan Principal and interests) of mortgage loan are subsidized by Unified Social Service of the Ministry of Labour and Social Affairs of the Republic of Armenia. The subsidized funds must be directed exclusively to the repayment of Principal and interests.

Attention. There are fees subject to compensation for the state registration of rights to property defined by RA Law.
ownership registration fee AMD 25.000 and state duty AMD 20.000
state registration fee of right of pledge AMD 25.000 and state duty AMD 20.000.

For the state registration of rights to real estate located in border settlements, the fees specified by the above laws shall be charged in the amount of 50%.

Attention. Do not charge the AMD 5000 amount for the study of loan application.

Attention. Do not apply availability of income, borrower and co-borrower accident insurance, unpaid down payment insurance and property insurance as mandatory requirements. 

Attention. Family members can combine certificates (maximum 3 certificates) for the purpose of purchasing joint residential real estate or building an individual residential house, in which case the amount of support will be determined by  the number of combined certificates.

Attention. For the purposes of this program, the father, mother, husband, spouses parents, grandmother, grandfather, sister, brother, children, sister's and  brother's spouses and children are considered family members. The members of the family defined by this clause can be members of the same or different beneficiary family within the framework of the program. However the same family member can be a family member of only one beneficiary. 

Attention. The family (family member) can benefit from the program once as a beneficiary (within a mortgage loan).

Attention. The ownership right to the acquired residential real estate or individual residential house under construction is registered in the name of all members of the beneficiary's family (except for children, a young member of the family who is not a beneficiary but is a borrower, and those co-borrowers who are not family members).

Attention. In the event that the mortgaged residential real estate is made the object of another pledge (subsequent pledge) during the term of the mortgage loan, the payment of monetary support terminates completely (except for subsequent collateral of the renovation of residential real estate purchased within the given mortgage loan).

Attention. In case of a refusal of refinancing or termination of refinancing when providing refinanced mortgage loans within the given loan type, the interest rate of the loan is defined 14% annually, except for the loans from the state support program for energy-efficient renovation of apartments and private dwellings in the territory of RA, in which case the interest rate does not change.
 
 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 penalties and fees are charged.
  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.In case of non-fulfillment or improper fulfillment of the obligations set forth by the Mortgage agreement, the borrower may lose his/her right of ownership over the property.
 
 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.Interest is calculated on the loan balance.
 
 Attention. After reaching a positive decision on the loan provision, before the conclusion of the mortgage agreement,  the Bank 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 based on the terms and conditions of the loan offered by the Bank and the documents submitted by the consumer,.
 
 Attention.“Your Financial Informant” is an electronic system which compares the search of services offered to individuals and facilitates the selection of the most effective option for you- https://www.fininfo.am/hipotekayin-varker
 
 Attention. Before signing the loan agreement (7 days prior) the Bank provides the proposal and the draft on signing of the loan agreement to the borrower.
 
 Attention. The Proposal on signing a loan agreement is effective 7 working days (thinking time) unless otherwise envisaged by the proposal.
 
 Attention. To get acquainted with the tariffs of other services rendered within the framework of execution of loan operations, please visit the following link: https://www.aeb.am/uploads/varkayin_sakagneri_havelvac_eng.pdf
 
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. 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( https://acra.am/?lang=hy )

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 

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 link. 

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)
• Penalties (if any)
• Interest (if any)
• 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).

7. WE SHOULD REMIND THAT THE EXCHANGE RATE FLUCTUATIONS MAY HAVE AN IMPACT ON THE REPAYMENTS OF LOAN PROVIDED IN FOREIGN CURRENCY.

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.

Loan history and Score grading

The essence of credit history:

Credit history is a set of information on quality of fulfillment of current and closed financial liabilities of the customer, which is collected in the Credit Bureau based on the information provided by credit organizations.The information collected is systemized by the Credit Bureau and as needed (Application of a new loan, monitoring of acting loan and etc) is provided to financial institution having the appropriate authority making the request. The client's credit history is essential for the lending organization in order to assess the creditworthiness of the given client and to make a decision to grant or reject a loan.

To change an incorrect or incomplete credit history, the client can apply to the ACRA Credit Bureau by submitting a written application manually or electronically, find out what information is stored about him/her and what is the source of the incorrect or incomplete information.

To submit an application to ACRA Credit Bureau, please visit the following link. 

Please follow the link below for the importance and significance of credit history.

The nature of credit SCORE scoring:

When granting certain types of loans, the financial organization uses a scoring system for assessing the creditworthiness of the client. The SCORE grade of the Applicant is mainly formed from various criteria of the credit history, based on which the applicant's creditworthiness is assessed using a scoring system. The score allows the financial organization to model and predict the possible behavior of the applicant during the period of the new loan, taking into account the eagerness of the applicant to repay previous and current obligations, the frequency of taking on new obligations and other criteria.

"ARMECONOMBANK" OJSC company uses the scoring system of evaluation developed and implemented by the Bank.

The factors affecting the SCORE grade are: credit burden, availablity of recorded income, previously overdue liabilities and etc. Each equest of credit history may have a negative impact on SCORE grade of the particular applicant and reduce it.

The customer's credit history and score can be improved by taking the following steps:

• fully repay existing overdue loan obligations and exclude even one day delays in performance of obligations on current loans;
• avoid becoming a guarantor for loans of untrustworthy persons in the future;
• have recorded income.

Please follow the link below for the importance and significance of credit history.