Business mortgage

Loan purpose

1. Acquisition of real estate property, including separate land areas (regardless of the purpose of the real estate),

2. Renovation/reconstruction/construction of real estate property

Borrower

RA resident/non-resident legal entities meeting the micro, SME and large class according to the Bank’s internal classification standards

Currency

AMD / USD

Minimum loan term

24 months

Maximum loan term

180 months

Loan amount

Minimum:10,000,000 AMD / 20,000 USD. Maximum: The maximum permissible risk limit per borrower defined by the Bank's internal legal acts.

Annual nominal interest rate

AMD: Fixed interest rate for the first 12 months of the loan term starting from 10.1 %,

floating interest rate of IBRR plus 0-4% starting from the 13th month / USD:

Fixed interest rate for the first 24 months of the loan term starting from 8.5 %,

floating interest rate of IBRR plus 0-4% starting from the 25th month

Loan application revision fee

Not specified

Loan provision commission fee

0.5-1% of the loan amount, one-time

Grace period for principal loan amount repayment

Based on the peculiarities of the business the grace period may be granted during the whole term of the loan, however, the aggregate sum may not exceed 36 months.

Loan and interest repayment

1. on annuity basis, by making equal monthly payments of principal and interest amounts,

2. reducing – equal repayment of principal amount and monthly repayment on interests,

3. mixed – repayment of principal mount based on dynamic of cash flows of the client and repayment of interest on a monthly basis.

Minimum business activity period (uninterrupted)

6 months

Bank account opening/maintenance

According to the tariffs applied in the Bank

Loan amount withdrawal

1. In case of loans extended for the purpose of real estate property acquisition the loan amount is transferred to the seller’s bank account. No cash withdrawal tariff applies to cash withdrawn from the seller’s bank account in the Bank in case if the amount had been transferred to the mentioned account,

2. In case of loans extended for the purpose of real estate property renovation – in accordance with the tariffs

Requirements to the credit history of the Borrower (including participants holding 10% and more in its charter capital)/guarantors

1. Absence of overdue /classified obligations as of the date of loan disbursement,

2. Good or neutral credit history acceptable by the Bank, according to the internal legal acts of the Bank,

3. Credit history requirements for other participants and parties closely related with the borrowers can be set by the decision of the competent authorities of the Bank.

Acceptable means of security/collateral

• Real estate property being acquired/renovated/reconstructed,

• Fixed assets (equipment, machinery, other property),

• Means of transportation,

• Working assets,

• Financial flows,

• guarantees, warranties,

• Financial means,

• precious metals (items),

• Shares,

• Securities,

• Pledge of right,

• Other property or property right allowed by the RA legislation.

Loan/collateral ratio

Defined by internal legal acts applied in the Bank.

Insurance of collateral

In case of the subject of collateral is a vehicle the latter should be insured according to the appraised market value if. In case of the rest of the types of collateral the competent authority of the Bank that takes the decision on providing the loan may require insurance of the subject of collateral.

Fines, penalties

Overdue principal amount penalty - 0.1% daily.

Overdue interest amount penalty – 0.1% daily.

Early loan amount repayment fee - in the amount of 5% of such early repaid amount.

Place of acceptance of the application

All the branches of the Bank

Maximum decision-making term

15 business days after submission of the complete package of documents required by the Bank.

Term of notifying the client about the taken decision

1 business day

Validity term of the decision

30 business days

Term of decision re-approval

Maximum once, within 10 business days after expiration of the validity term of the decision, under the terms of financing applicable as of the day of re-approval

Loan disbursement term

According to the internal legal acts of the Bank.

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.