Mortgage loans provided within the framework of own resources of the bank

Conditions
Loan type
Mortgage loan
Loan purpose
Mortgage loans provided within the framework of own resources of the bank
Loan currency 
AMD, USD, EUR
Loan amount 
AMD 1.000.000-100.000.000
USD 2.000-250.000
EUR 2.000-250.000
 
Annual interest rate
  AMD USD EUR AMD USD EUR
    Primary market (with the availability of documents certifying the income of the borrower) Loan/pledge* 90 70 70 Up to 70% inclusive 70-90% inclusive** 70 70
Annual interest tate (%) 15 12 11 13 13.5 10.5 10
Loan term (month) 120 120 120 120-240 120-240 120-240 120-240
Loan amount 1.000.000-100.000.000 2.000-250.000 2.000-250.000 1.000.000-100.000.000 1.000.000-100.000.000 2.000-250.000 2.000-250.000
Loans for real estate, renovation, construction and acquisition of real estate from the secondary market (with the availability of documents certifying the borrower’s income) Loan/pledge* 90 70 70 Up to 70% inclusive 70-90% inclusive** 70 70
Annual interest rate (%) 16 12 11 14 14.5 10.5 10
documents certifying the borrower’s income) Loan term (month) 120 120 120 120-240 120-240 120-240 120-240
Loan amount 1.000.000-100.000.000 2.000-250.000 2.000-250.000 1.000.000- 100.000.000 1.000.000-100.000.000 2.000-250.000 2.000-250.000
Primary and secondary market (with the availability of documents certifying the borrower’s income) 1 Loan/pledge* 50 50 50 50 50
Annual interest rate (%) 17 13 15 12 11
Loan term (month) 120 120 120 120-240 120-240
Loan amount 1-25 million 2.000-100.000 1-25 million 2.000-100.000 2.000-100.000
 
*The market price of additional property and the minimum of the values of the market price of the property to be acquired and the market price of additional property/if available/ should be taken as a basis of the value of collateral

** in case of exceeding 70% of loan/pledge ratio pledge of additional property or prepaid insurance in the amount exceeding 70% is needed

*** The annual interest rate of the loan remains unchanged for the first 36 months. After 36 months, the interest rate may increase or decrease by up to 4 percentage points according to the calculation below.
Ra= Rf + Rv
where Ra is the Fixed Adjustable Interest Rate,
Rf– Fixed component
Rv–Variable component


****Application study fee is set at AMD 5000, which is subject to proportional reduction only in case of loan provision and repayment ahead of the term.


*****The pre-approval application study fee is AMD 10.000, which is subject to proportional reduction only in case of loan provision and repayment ahead of the term. 

1. The loan is submitted for consideration by the competent authority if the applicant (borrower/co-borrower) has credited at least 95% of the difference between the estimated market value of the real estate to be purchased (if the purchase price is less, then the purchase price) and the intended loan amount to the account opened with ARMECONOMBANK OJSC. The credited amount is kept in the account until the competent authority makes a decision on granting or rejecting the loan.

*To get acquainted with the tariffs of the Bank, please visit the link -https://www.aeb.am/en/business_cash/ 

ATTENTION.The given tariffs are valid in case of loans with the aim of acquisition of residential real estate and for loans granted for the purpose of acquiring the right to purchase. 

ATTENTION.The given tariffs are valid for the loans granted for the acquisition of the right to purchase a residential real estate from the primary market, moreover after the state registration of the buyer's right property on the basis of the act of transfer of ownership right and final stage of the loan provision, the acting interest is reduced being defined at an interest rate for the acquisition of residential real estate within the framework of the relevant programs available at the Bank as of the date of making decision on loan provision. 

ATTENTION. Within the framework of the given loan type in case of a refusal of refinancing or termination of refinancing when providing refinanced mortgage loans, 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 individual residential houses in the territory of RA, in which case the interest rate does not change.

ATTENTION.A Co-borrower can be one or more members of the Borrower’s family.

ATTENTION.Early loan repayment is allowed for which no penalties and fees are charged.

ATTENTION.At the customer’s choice, the Bank reduces the size of monthly payments in proportion of early paid 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 on 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, 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 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.

ATTENTION."Your financial directory" is an electronic system that makes it easier for you to compare the services offered to individuals and find the most effective option for you. https://www.fininfo.am/ 

ATTENTION.Before signing the loan agreement (seven days prior) the Bank provides the proposal and project on the signing of the loan agreement to the borrower.

ATTENTION.The Proposal on the loan agreement conclusion is effective seven working days (thinking time) unless otherwise envisaged by the proposal.

ATTENTION.To get acquainted with the tariffs of the services rendered within the implementation of loan operations please visit the  link

To get acquainted with the terms, conditions and tariffs of the provision of statements, their copies, references and other information during the validity period of the agreement, please visit here.

ATTENTION.The insurance is realized at size of loan amount or the market value of the property by insurance companies licensed by RA CB, at the tariff determined by the latters.

The amounts to be paid by the consumer, irrespective of the fact of making the payments for goods, services or works by credit or without a credit, are not included in the calculation of the actual interest rate.

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( 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)
• 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

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: https://www.aeb.am/en/sakagner/:

19. You can get acquainted with the terms and conditions of remote banking services by visiting the following link:  https://www.aeb.am/en/sakagner/
Demands
Positive decision grounds
Positive loan history (if any)
Reliability of the submitted documents
Source of stable and sufficient income
Availability of a pledge acceptable by the Bank
Compliance with the criteria of the state target program "Affordable Housing for Young Families"
Negative decision grounds
Negative assessment of customers financial state
Non-credibility of the presented documents
Inadequacy of the “Affordable Apartment for the Young Family” state purpose project criterion
Customer’s negative loan history
Other reasons that will hamper the loan repayments according to the Bank assessment.
General Information
Documents to be presented by individuals in case of primary market
Punct2 copies of passports /of family members/
PunctCopy of the marriage certificate /if any/
PunctReference from workplace /personal account statement regarding the previous 12 months given by tax authority /
PunctCopy of social card
PunctCopy of the ownership certificate (copy of the document serving as a basis of for issuing the certificate, if necessary)
PunctStatement claiming that the given apartment is not under barrage /the original and 1 copy/ (to be presented after the confirmation of the loan)
PunctFounding documents of the vendor
PunctReference from vendor regarding the apartment for sale and its value
PunctStatement regarding the preliminary assessment of the real estate 041 77-41-00
 
Documents to be presented by individuals in case of secondary market
PunctCopies of passports /of 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 (if necessary)
PunctCopy of the social card
PunctPersonal account statement from tax authority /borrower, co-borrower/
PunctCopy of ownership certificate /of purchased apartment/ pledged property/ if necessary, copy of the document serving as a basis for issuing the certificate
PunctStatement claiming that the given apartment is not under foreclosure /original and 1 copy/  (to be submitted after loan approval)
PunctPassport copies of the vendor/owners/
PunctCertificate from the vendor's residence regarding registered persons /3rd form and 1 copy/
PunctPreliminary assessment of the real estate 041 77-41-00
Conditions

You can buy real estate from the following companies.

N

NAME

ADRESS

1

ARKADA CONSTRUCTION  LLC

83 Tigran Petrosyan Str., Yerevan

2

Jermuk Group CJSC

18/4 Arshakunyants Ave.,  Yerevan

3

ADVANCED DEVELOPMENT LLC

51 block, Bagrevand district, Nor-Nork, Yerevan

4

HB GROUP LLC

51/11 Sevak Street, Kanaker-Zeytun, Yerevan

5

ECOLOGY CONSTRUCTION  LLC

1/25 Davit Bek Street, Yerevan

6

Kanach Tagh LLC

61/1 and 61/6 Tsarav Aghbyur Street, Avan, Yerevan

7

Artadratekhnologiakan komplektavorum CJSC

23/3 Garegin Nzhdeh street, Yerevan

8

HOV-MAN SHIN LLC

Yeghbairyutyan 1, lane 2, Shengavit, , Yerevan

9

AH CONSTRUCTION

7/9 Lvovyan Street, Nor Nork, Yerevan

10

REM GROUP LLC

M. Frunze Street 8/9, Shengavit, Yerevan,

11

NAREKATSI HOUSE LLC

72 Marshal Babajanyan Street, Avan, Yerevan

12

SHINAS LTD

27/7 Leningradyan Street, Malatia-Sebastia, Yerevan

13

Malkhasyants 12 OJSC

6/1 Malkhasyants Street, Yerevan

14

Grig Development LLC

29/17  Leningradyan Street, Malatia-Sebastia, Yerevan

15

MUSH TOWERS LLC

37/46 Moldovakan Street, Nor Nork, Yerevan

16

AMELI GROUP LLC

51, Arabkir 29th street, Yerevan

17

ARMEN LLC

18 A. Sargsyan Street, Ajapnyak, Yerevan

18

VAGHARSH EV VORDINER LLC

19/5 plot  Nork district, Nork Marash, Yerevan

19

EDNO GROUP LLC

P. Duryan district 1, street 10, Arinj community, Kotayk region

20

Vardanush Nushevani Poghosyan

Charents Street, 1st Lane. 49 residential houses, Nork Marash, Yerevan

21

Lorida Group LLC ՍՊԸ

44/13 Ajapnyak district, Yerevan

22

Arman Artak Eghbayrner LLC

46/2 Tumanyan district, Avan, Yerevan city

23

Omega Plyus LLC

108/2 Lvovyan street, Nor Nork administrative district, Yerevan

24

MGS Development LLC

2/6 Kurghinyan, str. Malatia Sebastia administrative district, Yerevan

25

AYGEDZOR LLC

11/12 Davit Anhaght Street, Kanaker-Zeytun Administrative District, Yerevan

26

LIASHIN LLC

No. 13 Shahumyan Square, Kapan Community, Kapan City, Syunik Region

27

JUST DEVELOPER LLC

39/37 Moldovakan Street, Nor-Nork Administrative District, Yerevan

28

Modern Tower LLC

19 Arabkir street, plot 21, Yerevan

29

A.R. Shin LLC

2/18 plot , G-1 district, Ajapnyak administrative district

30

ARMSTROY PROJECT LLC

10/15, Arghtyun Street, Arabkir, Yerevan

 

Updated: 08/04/2024 10:41