General
Advantages
Loan type
Credit line
Loan purpose
Implementation of entrepreneurial activities
Currency
AMD, USD
Security
Residential, public, commercial real estate
Interest rate type*
Fixed interest rate for the first 12 months, and floating interest rate for months from 13 to 60
*The interest rate is set depending on the terms and indicators of the provided loan, for example, loan amount, loan term, loan/value ratio, property location, etc.
*The interest rate is set depending on the terms and indicators of the provided loan, for example, loan amount, loan term, loan/value ratio, property location, etc.
Annual interest rate (nominal) in case of credit lines with proof of income/income-verified
AMD - Fixed interest rate 15.5% - 18.5%
Floating interest rate: IBRR* + /6.2%-9.2%/
*The “ID Bank” reference rate ("IBRR"), and its calculation methodology are presented through the following link: For loans granted under these terms and conditions, the IBRR may be changed twice a year, in May and November. In this case, the change shall take effect 30 calendar days after publication. The minimum and maximum thresholds of the floating (nominal) interest rate on the loan in case of USD respectively are 7,5% and 16,5%, and AMD - 9% and 19%։
Floating interest rate: IBRR* + /6.2%-9.2%/
*The “ID Bank” reference rate ("IBRR"), and its calculation methodology are presented through the following link: For loans granted under these terms and conditions, the IBRR may be changed twice a year, in May and November. In this case, the change shall take effect 30 calendar days after publication. The minimum and maximum thresholds of the floating (nominal) interest rate on the loan in case of USD respectively are 7,5% and 16,5%, and AMD - 9% and 19%։
Annual interest rate (nominal) in case of credit lines without proof of income/no-doc
AMD - Fixed interest rate 16% - 19%
Floating interest rate: IBRR + /6.7%-9.7%/
Floating interest rate: IBRR + /6.7%-9.7%/
Annual interest rate (nominal) in case of credit lines with proof of income/income-verified
USD - Fixed interest rate 11%-13%
Floating interest rate: IBRR + /7.1% - 9.1%/
Floating interest rate: IBRR + /7.1% - 9.1%/
Annual interest rate (nominal) in case of credit lines without proof of income/no-doc
USD - Fixed interest rate 12․5% - 14․5%
Floating interest rate: IBRR + /8.6% - 10.6%/
Floating interest rate: IBRR + /8.6% - 10.6%/
Minimum loan term
24 months
Maximum loan term*
60 months
*At the Customer's request, the term of the Credit Line Agreement may be extended for a maximum period of 60 months, subject to annuity repayment of the Loan amount (balance) under the lending conditions in effect as of the date of application. Other terms for extending the Credit Line Agreement may also apply by the decision of the Bank's authorized body. The Customer submits an application for extending the term of the Credit Line Agreement at least 30 calendar days prior to the expiry date of the Agreement.
*At the Customer's request, the term of the Credit Line Agreement may be extended for a maximum period of 60 months, subject to annuity repayment of the Loan amount (balance) under the lending conditions in effect as of the date of application. Other terms for extending the Credit Line Agreement may also apply by the decision of the Bank's authorized body. The Customer submits an application for extending the term of the Credit Line Agreement at least 30 calendar days prior to the expiry date of the Agreement.
Minimum amount
AMD 5,000,001 or equivalent in USD
Maximum amount*
in case of credit lines with proof of income/income-verified: AMD 125,000,000 or equivalent in USD
in case of credit lines without proof of income/no-doc:AMD 25,000,000 or equivalent in USD
*Covers the total balance of all credit obligations of the Customer and its affiliated persons to the Bank, with credit lines/overdrafts participating in the calculation in the amount of the sum of the contract, and liabilities secured in foreign currency - at the exchange rate of the Central Bank of the Republic of Armenia for the given currency as of the date of making a decision on the loan.
in case of credit lines without proof of income/no-doc:AMD 25,000,000 or equivalent in USD
*Covers the total balance of all credit obligations of the Customer and its affiliated persons to the Bank, with credit lines/overdrafts participating in the calculation in the amount of the sum of the contract, and liabilities secured in foreign currency - at the exchange rate of the Central Bank of the Republic of Armenia for the given currency as of the date of making a decision on the loan.
Penalty for overdue loan, per day
0.1%
Penalty for overdue interest, per day
0.1%
Penalty for early termination of the credit line agreement
In the amount of 5% of the credit line agreement amount*
*The Customer also has the right to fulfill (repay) his obligations under the loan agreement ahead of Schedule/early repayment/, regardless of whether such a right is provided for in the loan agreement or not.
*The Customer also has the right to fulfill (repay) his obligations under the loan agreement ahead of Schedule/early repayment/, regardless of whether such a right is provided for in the loan agreement or not.
WARNING
PLEDGED PROPERTY AND/OR FUNDS MAY BE SEIZED/FORECLOSED IN ACCORDANCE WITH THE PROCEDURE ESTABLISHED BY LAW IF THE LOAN AMOUNT AND INTEREST PAYMENTS ARE NOT MADE ON TIME. ATTENTION: THE BANK SENDS INFORMATION ABOUT THE CUSTOMER TO THE CREDIT BUREAU WITHIN A MAXIMUM OF ONE BUSINESS DAY, WHERE THE CUSTOMER'S CREDIT HISTORY IS FORMED. THE CUSTOMER HAS THE RIGHT TO OBTAIN HIS CREDIT HISTORY FROM THE CREDIT BUREAU ONCE A YEAR FREE OF CHARGE. ATTENTION: A BAD CREDIT HISTORY MAY HINDER THE CUSTOMER FROM OBTAINING A LOAN IN THE FUTURE.
Maximum loan/pledge ratio (to the estimated realizable value of the property)
in case of credit lines with proof of income/income-verified։ 70%, if the pledge object is an apartment or public space 50%, if the pledge object is a residential house (private house) and land plot, etc.
in case of credit lines without proof of income/no-doc։ 60%, if the pledge object is an apartment or public space 40%, if the pledge object is a residential house (private house), land plot, etc.
in case of credit lines without proof of income/no-doc։ 60%, if the pledge object is an apartment or public space 40%, if the pledge object is a residential house (private house), land plot, etc.
Disbursement method
Non-cash, through a current account. See Tariff information Bulletin link for account opening and servicing/maintenance fees/rates.
Credit line type
- Revolving credit line,
- Non-Revolving credit line,
- Credit line with repayment schedule
- Non-Revolving credit line,
- Credit line with repayment schedule
Loan and interest repayment method
Interest amounts: monthly repayments
Loan application review fee
Not specified
Loan disbursement fee
Not specified
Interest for the unused part of credit line
0.1% of unused credit line, monthly
Borrower status
RA resident legal entity, Individual entrepreneur
Minimum period of business activity
in case of credit lines with proof of income/income-verified։6 months
in case of credit lines without proof of income/no-doc։Not specified
in case of credit lines without proof of income/no-doc։Not specified
Age restrictions for borrower
Individual entrepreneurs must be at least 21 years old on the date the loan is issued and no older than 65 years old at the end of the loan term.
Credit history requirements
- absence of current overdue/classified liabilities (loan, credit line, overdraft, issued guarantee, etc.) (also applies to the pledger/guarantor)
- absence of credit history is acceptable
- the customer must not be in the Bank's list of unwanted clients*
*Legal relationships regarding the classification of a customer as unwanted by the Bank are regulated by the Procedure/Rules on “Defining the Criteria of Classification of a Client as Unwanted and Termination of Business Relations with Him/Her” https://idbank.am/en/information/helpfull-information/RL-0350-0001-04-eng.pdf
- absence of credit history is acceptable
- the customer must not be in the Bank's list of unwanted clients*
*Legal relationships regarding the classification of a customer as unwanted by the Bank are regulated by the Procedure/Rules on “Defining the Criteria of Classification of a Client as Unwanted and Termination of Business Relations with Him/Her” https://idbank.am/en/information/helpfull-information/RL-0350-0001-04-eng.pdf
TDR ratio (ratio of total debt obligations (average monthly) to net income/profit/revenue)
AMD- up to 60%, USD- up to 55%
Pledge object/Collateral*
Residential/public/commercial real estate located in the territory of the Republic of Armenia, including a separate land plot with the purpose of "settlement land use", located in Yerevan
*As an additional security measure, the Bank may require a guarantee from an individual or legal entity*
*In the event of the Borrower's failure to fulfill or delay in fulfilling his obligations, the Guarantor bears the liability stipulated by the Contract/Agreement, within the framework of which there may be a foreclosure of his property and/or funds arising from the fulfillment of obligations, as well as a deterioration in his credit history as a result of the transfer of information to the credit bureau.
*As an additional security measure, the Bank may require a guarantee from an individual or legal entity*
*In the event of the Borrower's failure to fulfill or delay in fulfilling his obligations, the Guarantor bears the liability stipulated by the Contract/Agreement, within the framework of which there may be a foreclosure of his property and/or funds arising from the fulfillment of obligations, as well as a deterioration in his credit history as a result of the transfer of information to the credit bureau.
Pledger
Any individual or legal entity (in case of a legal entity - pledger, the latter must have state registration of the Republic of Armenia)
Valuation of the pledge object
The pledge object must be appraised by one of the specialized organizations cooperating with the Bank, the list of which is presented at the following link: List of Appraisers*
Minimum requirements for the pledge object
1.the real estate must have a stone, panel or reinforced concrete structure (except for partitions and interfloor ceilings),
2.the real estate must not be a public accommodation or be located in a territory of another building, a dormitory,
3.the real estate must not be located in a territory/area of overriding public interests, a residential house (private house) should not have a common yard area, common joint or common share ownership with other properties, or common walls with neighboring buildings
2.the real estate must not be a public accommodation or be located in a territory of another building, a dormitory,
3.the real estate must not be located in a territory/area of overriding public interests, a residential house (private house) should not have a common yard area, common joint or common share ownership with other properties, or common walls with neighboring buildings
Insurance against loss of life and permanent inability to work due to an accident with the Borrower
may be required by the Bank, provided on the basis of the loan balance (applicable to Individual Entrepreneur borrowers). The list is presented at the following link: List of Insurance Companies.*
*Regardless of the rates specified by the Bank in these terms and conditions, fees for services provided by third parties may be changed by third parties.
*Regardless of the rates specified by the Bank in these terms and conditions, fees for services provided by third parties may be changed by third parties.
Insurance of the pledge object
may be required by the Bank, based/depending on the loan balance or the estimated market/realizable value of the property. The list is presented at the following link: List of Insurance Companies.*
*Regardless of the rates specified by the Bank in these terms and conditions, fees for services provided by third parties may be changed by third parties.
*Regardless of the rates specified by the Bank in these terms and conditions, fees for services provided by third parties may be changed by third parties.
Master loan agreement
The Bank may sign a Master loan agreement with the customer for a term of up to 240 months.
Positive factors for providing/issuing a credit line
1)Positive credit history,
2)Steady cash flow,
3)Compliance of the pledge object with the Bank's requirements
4)Other factors
2)Steady cash flow,
3)Compliance of the pledge object with the Bank's requirements
4)Other factors
Credit line rejection factors
1)Poor credit history,
2)Pledge object does not comply with the Bank's requirements, or the property is considered difficult to sell from the Bank's perspective
3)Provision of false or inaccurate information,
4)Provision of information that casts doubt on the loan's repayability ,
5)Poor credit history of a person affiliated with the customer
2)Pledge object does not comply with the Bank's requirements, or the property is considered difficult to sell from the Bank's perspective
3)Provision of false or inaccurate information,
4)Provision of information that casts doubt on the loan's repayability ,
5)Poor credit history of a person affiliated with the customer
Maximum decision-making period
in case of credit lines with proof of income/income-verified։Maximum 5 business days after submitting all required documents to the Bank
in case of credit lines without proof of income/no-doc։Maximum 2 business days after submitting all required documents to the Bank
in case of credit lines without proof of income/no-doc։Maximum 2 business days after submitting all required documents to the Bank
Decision notification period
1 business day
Decision validity period
30 business days
The Bank has the right to refuse to grant a credit line if essential terms necessary for making a positive decision on granting a credit line have changed (e.g., overdue obligations, seizure/freezing of bank accounts, etc.).
The Bank has the right to refuse to grant a credit line if essential terms necessary for making a positive decision on granting a credit line have changed (e.g., overdue obligations, seizure/freezing of bank accounts, etc.).
Decision reapproval period
maximum once, within 10 business days after the expiration of the decision, under the lending conditions in effect as of the date of re-approval
Term for providing the loan amount to the Borrower
1 business day after receiving the document confirming the right to pledge over the pledge object
Place of acceptance, processing and disbursement of loan applications
All branches of the Bank
List of required documents
By the following link: List of documents (In case of loans without income proof, the specified documents are not required for conducting financial analysis)
Information regarding credit history and credit score
You can learn about the importance of credit history and credit score here․
Details via abcfinance.am and acra.am links.
Details via abcfinance.am and acra.am links.
Information bulletin Apply now
Repayment Term up to 60 months
No Income Justification for credit lines up to 25 mln ֏
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