Micro loans “Jerm Ojakh”

Loan purpose

Renovation of residential real estate property aimed at increasing energy efficiency, Moreover, at least 40% of the loan means must be directed towards measures and materials/accessories for increasing energy efficiency of the residential real estate property, while up to 20% of the loan amount can be directed towards purchase of energy-saving household appliances.

Loan currency

AMD

Annual interest rate

14%

Actual annual interest rate

14.93%

Minimum term

60 months

Maximum term

84 months

Minimum amount

AMD 275,000

Maximum amount

AMD 3,000,000

Security

Guarantee of a physical entity may be required

Requirements for the real estate property to be renovated

1․ The real estate property to be renovated can be an apartment in a multi-apartment complex, a house in a rural or community area on the territory of the RA, except for the “Kentron” administrative district of Yerevan city, 2․ The real estate property to be renovated must be owned by the borrower or his/her family member , 3․ As of the date of acceptance of the loan application the real estate property to be renovated must not be pledged/under seizure, except for cases, when the real estate property is pledged in the Bank.

Loan application revision fee

Not defined

One-time loan disbursement fee

Not defined

Loan encashment fee

Not defined

Monthly loan service fee

Not defined

Grace period for repayment of the principal loan amount

6-12 months. With monthly interest repayment

Grant

In case of more than 40% share of the energy-efficient measures in the total investments, the available grant amounts to 5% of the loan amount and is directed towards repayment of the principal loan amount. The energy-efficiency evaluation is implemented online with the help of energy-saving calculation tool in order to determine grant eligibility and amount. Following are the preconditions for provision of a grant: - All the measures implemented must be at least grounded by payment verification documents. - If the client has also performed renovation of property besides purchase of energy-efficient materials/accessories, it is necessary to provide the initial and final photo and/or video materials of the renovation works.

Repayment of the principal loan amount and interest amounts

Repayment of interest amounts during the grace period of repayment of the principal loan amount – monthly, repayment of the loan and interest amounts by the end of the grace period – equal monthly payments (annuity).

Loan disbursement method

One-time, non-cash through the clients’ bank account opened with the Bank

Opening/closure of bank account

According to the tariffs applied in the Bank presented at the following link: Information bulletin on tariffs.

Status of the borrower/co-borrower/guarantor

RA citizen physical entity

Age limit

- Borrower/co-borrower – physical entity over 21 years of age whose age must not exceed 65 years by the maturity term of the loan, - Guarantor – physical entity over 21 years of age whose age must not exceed 65 years at the moment of provision of the loan.

General principles of borrower’s/guarantor’s creditworthiness assessment

Maximum ratio of total debt payments and net incomes (OTI) must not exceed 45%, Renewable credit lines are included in the OTI calculation in the amount of monthly repayment of the loan in an annuity repayment method for a term of 60 months.

Borrower’s/Guarantor’s incomes

The Borrower and/or the co-borrower must have a primary income. The Guarantor must have a primary and a secondary income. Primary income is the salary or equivalent payments received throughout the main working hours based on the professional skills and abilities of the client which are considered in the amount of 100%. The list of types of secondary income is presented in Appendix 1.1.

Requirements of the credit history of the borrower/guarantor

1. Absence of credit history or 2. Absence of overdue loan labilities to the banking system as of the day of submission of the loan application (in terms of loans, credit lines, overdrafts, provided guarantees etc.) and 3․ not more than a total of 3o days of delay in terms of principal amount and/or interest repayments of loans (credit lines, overdrafts, provided guarantees etc.) within 12 months prior to the day of submission of the loan application 4․ the borrower/guarantor can have only one active loan at the same time (housing micro loan or energy-efficiency renovation loan) and in the meantime there must be only one active loan for the purpose of renovation of one real estate property (housing micro loan or energy-efficiency renovation loan).

Fines, penalties

Fine for overdue principal loan amount – 0.1% a day. Fine for overdue interest amount – 0.1% a day. In case of non-targeted use of the loan the Bank is entitled to demand: 1) early repayment of the whole lone amount, 2) penalty in the amount of 25% of the improperly used loan amount, 3) revision of loan interest rate according to the decision of the competent body of the Bank.

Location of acceptance of the loan application, processing and provision of the loan

All branches of the Bank

Positive factors for loan provision

1) good credit history, 2) cash flows

Loan rejection factors

1) bad credit history, 2) such information about the client which calls into question the information provided/declared to the Bank by the client, 3) such information about the client which calls into question the repayment of the loan, 4) insufficient cash flow level, 5) absence of email address of the client 6) other basis

Maximum decision-making term

Maximum 3 business days after submission of all the required documents to the Bank

Notification deadline for the decision

Maximum 3 business day after decision has been made.

Maximum decision validity term

30 business days.

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.