Investment Loans

Purpose of the loan

Purchase of property, including real estate and/or movable property, shares, stocks, other investment securities (except for crypto assets and derivative securities) in Armenia or abroad for the purpose of generating income. Real estate purchased in the territory of the Republic of Armenia must have business significance*

*Real estate is considered to be of business significance if it is not intended for residential use, and in the case of real estate intended for residential use, it is used exclusively for the purpose of generating income, for which there must be appropriate justification.

Customer

Individuals - residents and non-residents of the Republic of Armenia

Loan currency

AMD, USD, EUR, RUB

Minimum loan amount

20,000,000 AMD, 50,000 USD/EUR, 4,000,000 RUB

Maximum loan amount

2,000,000,000 AMD, 5,000,000 USD/EUR, 400,000,000 RUB

Minimum loan term

60 months

Maximum loan term

240 months for the purchase of real estate

180 months – for other property

Nominal annual interest rate**

Fixed interest rate: for the first 24 months

AMD։ Starting from 15.5%

USD։ Starting from 11%

EUR։ Starting from 10%

RUB։ Contractual

Floating interest rate starting from the 25th month up to 240 months or

AMD։ Starting from IBRR +[6.2%]

USD։ Starting from IBRR +[7.1%]

EUR։ Starting from IBRR +[8%]

RUB։ Contractual

Initially floating interest rate

AMD։ Starting from 13.5% IBRR+[4.2%]

USD։ Starting from 9% IBRR+[5.1%]

EUR։ Starting from 8% IBRR+[6%]

RUB։ Contractual

Effective annual interest rate

Maximum 24%

Collateral (pledge)

• Acquiring real estate/collateral rights in Armenia,

• Other: real estate acceptable to the Bank

• Cash, including bonds issued by the Bank

• Other collateral acceptable to the Bank

Additional collateral

As additional collateral, the Bank may also require guarantees from individuals and/or legal entities

Loan-to-value ratio

In accordance with the maximum loan-to-value ratios established by the Bank for the relevant types of secured loans.

Loan disbursement method

One-time, cashless, through a current account

Method of loan and interest repayment

• Annuity – Equal monthly repayments of the sum of loan principal and interest amount*

• Differentiated - equal monthly repayments of loan principal, repayments of interest amount on a monthly basis

* In case of change of the annual nominal interest rate during the loan term, the method of repayment of the loan and interest amounts may be changed

Loan origination one-time fee

0.5% of the loan amount

Bank account opening

A bank account is opened for both the borrower and the co-borrower in the currency of the loan in accordance with the Bank's current rates.

Loan amount use

Cashless

Fees for registering collateral

The following payments are made by the Customer:

• Collateral appraisal fee

• Fee for a single certificate of restrictions on the collateral

• Fee for notarization of the real estate that is the subject of the collateral

• Fee for registration with the state authorized body of the Bank's rights arising from the collateral agreement

Pledger

Any individual or legal entity

Relations between the borrower/coborrower and seller of the real estate

The real estate or the movable property cannot be purchased from the individual who is the family member of the borrower/co-borrower, particularly borrower/co-borrower’s father, mother, spouse, spouse’s parent, grandmother, grandfather, sister, brother, child, spouse and child of the sister, brother.

Location of the pledged property

Republic of Armenia

Status of the Borrower/Co-borrower

Individuals - residents and non-residents of the Republic of Armenia

Age restriction

Borrower – an individual who is at least 21 years of age and whose age must not exceed 70 years at the end of the loan repayment period

Co-borrower – an individual who is at least 21 years of age and whose age must not exceed 70 years at the end of the loan repayment period (the age restriction does not apply if the financial situation of the borrower (other co-borrowers), based on the information provided in the loan application, without this coborrower (co-borrowers), meets the requirements for mortgage loan repayment)

Incomes of the borrower/coborrower

If the Bank requires proof of income:

1) composition of primary income according to Appendix 1 2) composition of secondary income according to Appendix 1

Requirements for the credit history of the borrower/co-borrower

1.No credit history or

2. No overdue obligations to the financial and banking system (on loans, credit lines, overdrafts, guarantees provided, etc.) as of the date of application for a loan, as well as

3. The total amount of overdue principal and/or interest on previously obtained loans (credit line, overdraft, guarantees provided, etc.) must not exceed 30 days in total within 12 months prior to the date of application for a loan

4. The customer must not be included in the Bank's list of undesirable customers

Loan rejection factors

1. Non-compliance with the terms and conditions of the loan

2. Negative credit history of the customer

3. Negative credit history of a person affiliated with the customer

4. Unsatisfactory income level

5. Insufficient level of creditworthiness

6. Insufficient liquidity of collateral from the Bank's point of view

7. Undesirable customer for the Bank

8. Provision of false or inaccurate information

9. Availability of information that casts doubt on the repayment of the loan

10. Lack of customer email

11. Other grounds

Fines, penalties

Penalty for overdue loan amount - 0.12% per day

Penalty for overdue loan interest - 0.12% per day

3% of the amount of the loan repaid early, if the amount of the early repayment exceeds the total amount of the principal debt on the loan provided for in the repayment schedule for 6 months after the date of early repayment.

In the event of misuse of the loan, the Bank shall have the right to demand:

1) early repayment of the remaining loan amount,

2) a penalty of 25% of the unused loan amount,

3) revision of the loan interest rate in accordance with the decision of the Bank's authorized body.

In this case, the term for justifying the intended use of the loan is established by the loan agreement concluded between the Bank and the Customer, and, if necessary, the Customer undertakes to provide documents that are the basis for the acquisition of assets.

Insurance

Provided by the Bank.

Detailed information is presented in Appendix 2

Requirements for collateral

In accordance with the requirements for the type of collateral established by the Bank for the relevant types of loans secured by collateral.

Where to submit your application and documents

All branches of the Bank

Loan decision making and notification of the customer

Up to 7 business days after submission of the full set of documents requested by the Bank.

Loan disbursement time

Maximum 3 business days after submission of the full set of required documents, following the decision to grant the loan and registration of the collateral right.

Validity of the loan decision

30 business days

*If necessary, the Bank may request updated income verification documents.

Master loan agreement

The Bank concludes a master loan agreement with the client for a term of up to 240 months and in the amount of up to 100% of the market value of the property.

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.

1

ATTENTION: INTEREST PAYMENTS ARE CALCULATED BASED ON THE NOMINAL INTEREST RATE. THE ANNUAL EFFECTIVE PERCENTAGE RATE INDICATES THE TOTAL COST OF THE LOAN TO YOU, INCLUDING INTEREST PAYMENTS AND ALL MANDATORY FEES RELATED TO THE ISSUANCE AND SERVICING OF THE LOAN, PROVIDED THAT ALL PAYMENTS ARE MADE IN THE AMOUNTS AND WITHIN THE TIMEFRAMES SPECIFIED IN THE LOAN AGREEMENT.

2

THE PROCEDURE FOR CALCULATING THE ANNUAL EFFECTIVE PERCENTAGE RATE IS PRESENTED WITH THIS LINK.

3

The Bank has the right to unilaterally amend the material terms of the loan, including the loan interest rate, or to require early partial or full repayment։ RULES FOR LENDING UNDER MASTER LOAN AGREEMENT CONCLUDED WITH “ID BANK” CJSC

4

A POOR CREDIT HISTORY MAY HINDER THE CUSTOMER’S ABILITY TO OBTAIN A LOAN IN THE FUTURE.

5

IN THE EVENT OF OVERDUE OBLIGATIONS, REPAYMENTS SHALL BE APPLIED IN THE FOLLOWING ORDER: EXPENSES INCURRED FOR DEBT RECOVERY, INCLUDING COURT COSTS (IF ANY), PENALTIES ON INTEREST, PENALTIES ON THE LOAN PRINCIPAL, INTEREST, SERVICE FEES AND COMMISSIONS (IF ANY), AND THE LOAN PRINCIPAL. THE BANK RESERVES THE RIGHT TO UNILATERALLY CHANGE THE ORDER OF REPAYMENT SPECIFIED IN THIS CLAUSE AT ANY TIME.

6

Disputes arising between the parties may be resolved through the courts or through the Financial System Mediator (in accordance with the procedure established by the RA Law on the Financial System Mediator), address: 15 M. Khorenatsi Street, Elite Plaza Business Center, 7th Floor, Yerevan 0010, Republic of Armenia, e-mail: [email protected], telephone: (+37460) 70-11-11, fax: (+37410) 58 24 21. Furthermore, if the amount of the property claim does not exceed AMD 250,000 (two hundred fifty thousand) or its equivalent in foreign currency, the decisions of the Financial System Mediator may not be challenged by the Bank.

7

The Bank may, for the purposes of customer due diligence as required by the RA Law on Combating Money Laundering and Terrorist Financing, request additional documents or information based on the “Know Your Customer” (KYC) principle.

8

Pursuant to the agreement concluded with the United States under the Foreign Account Tax Compliance Act (FATCA), the Bank may collect additional information to determine whether the customer is a U.S. taxpayer, as well as to provide the State Revenue Committee of the Republic of Armenia with information on customers who are foreign tax residents in accordance with the Common Reporting Standard (CRS) of the Organisation for Economic Co-operation and Development (OECD), as prescribed by the RA Tax Code.

9

THE BORROWER HAS THE RIGHT TO COMMUNICATE WITH THE BANK THROUGH THE METHOD OF THEIR CHOICE, EITHER BY POSTAL MAIL OR ELECTRONIC MEANS. RECEIVING INFORMATION ELECTRONICALLY IS THE MOST CONVENIENT OPTION. IT IS AVAILABLE 24/7, ELIMINATES THE RISK OF LOSING PAPER DOCUMENTS, AND ENSURES CONFIDENTIALITY.

10

DURING THE TERM OF THE LOAN AGREEMENT, INFORMATION ON THE TERMS FOR THE PROVISION OF STATEMENTS, DUPLICATE STATEMENTS, AND CERTIFICATES IS AVAILABLE AT THE FOLLOWING LINK: Tariff։

11

The list of the Bank’s branches and ATMs, as well as their addresses and business hours, is available at the following link: Branches and ATMs:։

12

ATTENTION: WHEN APPLYING FOR A LOAN, THE LENDER WILL PROVIDE YOU WITH AN INDIVIDUAL SHEET OF THE ESSENTIAL TERMS OF THE CONSUMER LOAN, WHICH WILL PRESENT THE INDIVIDUAL TERMS OF THE LOAN TO BE PROVIDED TO YOU.

13

WARNING: YOUR PROPERTY (HOME, VEHICLE, OR OTHER ASSETS) MAY BE SEIZED IN ACCORDANCE WITH THE LAW IF YOU FAIL TO MAKE TIMELY PAYMENTS OF INTEREST AND REPAY THE LOAN AMOUNT.