Refinancing loans secured with real property

Annual nominal interest rate

AMD: Current interest rate of the loan, reduced by up to 2 percentage points (in case of loan refinancing in the same currency) but no less than:

For stated income loans - 13.5% (where Rocket Line is provided) and 14% (where Rocket Line is not provided)

For self-certified loans - 14%

USD: Current interest rate of the loan reduced by up to 2 percentage points (in case of loan refinancing in the same currency):

In case of mortgage loan refinancing – IBRR 2 + minimum 3.6%

In case of consumer loan refinancing - IBRR 2 + minimum 4.6%

Effective annual interest rate

AMD:From 14.38%

USD: From 7.76%

Type of the interest rate

AMD:Fixed interest rate for the first 24 months and floating interest rate starting from the 25th month

USD/Floating interest rate for the entire term of the loan

Target group of borrowers

54.1. transfer of an existing liability/liabilities secured by movable or immovable property serviced for at least 12 months in other banks/lending organizations, with the possibility of increasing the amount,

54.2 granting loans to those clients, who had a loan secured by real estate serviced in other banks/lending organizations for at least 12 months, with a final repayment within 6 months preceding the moment of applying for a loan.

In cases stipulated by clauses 54.1 and 54.2 of these terms and conditions:

1) 1) Loans can be refinanced to persons affiliated with the borrower. For the purposes of these terms and conditions, an affiliated person is father, mother, child, spouse, sister, brother of the borrower. In this case, the Bank may require a document certifying the kinship (marriage certificate, birth certificate, etc.)

Other requirements

In cases stipulated by clauses 54.1 and 54.2 of these terms and conditions:

In the cases specified in clause 54.1 of these terms and conditions, the total amount of overdue days on the client's loans during the last 24 months preceding the submission of the loan application should not exceed 50 days, and for the transferred loans - 10 overdue days,

- In the cases specified in paragraph 54.2 of these terms and conditions, the total amount of overdue days on a repaid loan secured by real estate in the case of loan servicing for the last 24 months should not exceed 20 days.

- loans transferred during the most recent 3 months preceding the application date should be classified as “Standard”

Loan application processing fee

Not specified

Up-front fee

Not specified

Monthly service fee

Not specified

Pledging related costs

Costs to be borne by the Bank for executing the pledge for loans exceeding AMD 4,000,001/equivalent in foreign currency.

- Collateral appraisal fee (appraisal is not required if the property pledged at the Bank was appraised during the most recent 12 months, or any other banks/financial organizations during the most recent 6 months preceding the date of application by one of the appraising companies – partners of the Bank).

- fee for unified reference issued by the Real estate Cadaster State Committee of the RA Government ,

- Fee for notarization of real estate, subject of collateral.

- Fee for registration of the title of the Bank resulted from the pledge agreement in the state competent authority.

*The fee for a Unified Reference issued by the State Committee of the Real Estate Cadastre adjunct to the Government of the Republic of Armenia and the fee for registration of the Bank's right arising from the Pledge Agreement, in case of registration through the ARPIS program operating in the Bank, shall not be charged.

If the pledge-related expenses are covered by the Bank, and the borrower repays the loan in full ahead of the schedule within 24 months following the transfer, the borrower reimburses the expenses incurred by the Bank specified in this clause.

*

** Other conditions of loan refinancing not specified in clauses 47-58, are regulated under clauses 1-46 of these terms and conditions.

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.