For the purchase. Young families

Purpose of the loan

Acquisition of existing residential real estate (with 80% and higher percentage of construction completion) for the purpose of permanent residency

Loan currency

AMD

Minimum loan amount

5,000,000 AMD

Maximum loan amount

In case of acquisition of property from the secondary market - up to 22,500,000. / In case of acquisition of property from the secondary market - up to 27,750,000

Rocket Line

Up to AMD 10 000 000

Minimum loan term

120 months

Maximum loan term

121 - 180 months

Nominal annual interest rate

7.4-8.4%

Effective annual interest rate

8.25%-10.1%

Minimum down payment

In case of acquisition of property from the secondary market - 30%,

In case of acquisition of property from the primary market - 20%.

Of the value of the real estate property being acquired in Yerevan and RA regions.

In case of acquisition of property from the secondary market - 10%, and in case of acquisition of property from the primary market - 7.5% (of the value of the real estate property being acquired in Yerevan and RA regions), in case if:

- another residential real estate property is being pledged besides pledging the residential house or apartment being acquired, or

- guarantee provided by a legal entity occupying from 1st to 300th place among the list of RA large taxpayers as of the date of submission of the loan application is being provided besides pledging the residential house or apartment being acquired

- in addition to the pledge of the residential house or apartment being acquired the client also insures the prepayment in the amount of the difference between the definedminimum prepayment amount and prepayment made.

Security (pledge)

Real estate property being acquired:

In case of prepayment in the amount of 30% and more in case of acquisition from the secondary market.

In case of prepayment in the amount of 20% and more in case of acquisition from the primary market.

In case of 10%-29% down payment for acquisition of property from the secondary market, and 10%-19% down payment for acquisition of property from the primary market - real estate property being acquired and

- other residential real estate property, or

- guarantee provided by a legal entity occupying from 1st to 300th place among the list of RA large taxpayers

- insurance of prepayment in the amount of the difference between the defined minimum prepayment amount and prepayment made

Maximum loan/collateral ratio

70% if a real estate property being acquired from the secondary market is being pledged.

80% if a real estate property being acquired from the primary market is being pledged.

90%-99%, within the state assistance program for ensuring housing accessibility for families displaced from certain regions of the Republic of Artsakh.

10% - in case if along with the residential house or apartment being acquired another residential real estate property is being pledged, or

- in case if along with the pledge of residential house or apartment being acquired the client submits the guarantee provided by a legal entity occupying from 1st to 300th place among the list of RA large taxpayers as of the date of submission of the loan application or

- in case if along with the pledge of residential house or apartment being acquired the client implements insurance of the prepayment in the amount of the difference between the defined minimum prepayment amount and prepayment made

Loan disbursement method

One-time non-cash through current account

Method of loan and interest repayment

1. Annuity repayment method - Equal monthly repayments of the sum of loan principal and interest amount*

2. Differentiated repayment method 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 period, the method of repayment of the loan and interest amounts can be changed

Loan application review fee

Not specified

Loan disbursement one-off fee

Not specified

Bank account opening

Bank account is opened both for the borrower and the co-borrower in the loan currency according to the tariffs applied in the Bank.

If the loan currency is other than AMD, an account in AMD shall also be opened.

Fees for pledge registration

The following expenses are paid by the client:

1. Pledge appraisal fee*

2. Fee for unified reference on restrictions on the subject of pledge

3. Notarization fee for the real estate which is the subject of pledge

4. Fee for registration of the Bank s right arising from the pledge agreement in the competent state body.

* In case of acquisition of residential real estate property from the primary market, the pledge assessment fee will be covered by the Bank.

Commission for encashment of loan amount and down payment

Not specified

Pledger

In case of real estate property being acquired and other real estate property - borrower/coborrower

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

The real estate property cannot be acquired from the physical entity who is the family member of the borrower/coborrower, particularly borrower/coborrower s father, mother, spouse, spouse s parent, grandmother, grandfather, sister, brother, child, spouse and child of the sister, brother.

Status of the borrower/coborrower

RA citizen physical entity or non-RA citizen physical entity whose spouse is a RA citizen

Age restriction

1) spouse(s) over 21 years old whose aggregate ages does not exceed 70 years, or

2) a single parent whose age is between 18-35 at the time of loan disbursement.

The borrower s spouse can become a coborrower, and any member of their families (family members are: the spouse, the borrower s and his/her spouse s parents, sisters and brothers) whose age should not exceed 63 years at the moment of loan disbursement.

General principle of borrower/coborrower s creditworthiness assessment

Maximum ratio of repayments and net incomes must not exceed 35%.

Maximum total debt to income ratio (OTI) must not exceed: 45%

Incomes of the borrower/coborrower

1) Composition of primary incomes - according to Appendix 1.

2) Composition of secondary incomes - according to Appendix 1

Requirements to the borrower s/coborrower s credit history

1. Absence of credit history or

2. Absence of overdue liabilities towards the financial-banking system as of the date of acceptance of the loan application (in terms of loans, credit lines, overdrafts, provided guarantee etc.), and

3. Less than 30 total overdue days in terms of loan principal amount and/or interest repayments in terms of loans (credit line, overdraft, guarantee etc.) received within the 12 months preceding the loan application submission date.

The client must not be included in the list of unwanted clients of the Bank

Loan rejection factors

1. Non-compliance with the conditions of the loan type

2. Adverse credit history of the client

3. Adverse credit history of the person affiliated with the client

4. Insufficient income

5. Insufficient level of creditworthiness

6. Insufficient level of collateral liquidity from the bank's perspective

7. An undesirable client for the bank

8. Provision of false or unreliable information

9. Availability of information casting doubt on loan repayment

10. Lack of a client email address

11. Other reasons

Fines, penalties

Penalty for overdue principal amount - 0.12% daily.

Penalty for overdue interest amount - 0.12% daily.

In case of early loan repayment:

- 0.6% of early repaid amount for the 1st year of the loan agreement,

- 0.4% of early repaid amount for the 2nd year of the loan agreement,

- 0.2% of early repaid amount for the 3rd year of the loan agreement,

- No early repayment penalty is charged after the 3rd year of the loan agreement.

No early repayment penalty is charged for the amount which does not exceed the aggregate sum of principal amount repayments provided by the repayment schedule for the 12 months following the early repayment.

In case of non-targeted use of the loan the Bank is entitled to demand:

1) early repayment of the whole loan amount,

2) penalty in the amount of 25% of the misused loan amount,

3) revision of loan interest rate according to the competent body if the Bank.

Insurance

Performed by the Bank.

Presented in Appendix 2

Requirements to the subject of pledge

Presented in Appendix 3

Place of acceptance of the application and documents

All branches of the Bank, www.idbank.am website, Contact Center

Loan decision making and notification of the client

Up to 3 business days after submission of a complete package of documents required by the Bank

Loan disbursement term

Maximum 3 business days after submission of complete package of documents and registration of the right of pledge after the decision has been made

Validity of the loan decision

30 business days

The validity period of the decision on the provision of the credit line and the Rocket Line limit provided in parallel with the mortgage loan is set 30 business days, and in other cases, the time period set by the information summaries for credit line and the Rocket Line loan shall apply.

Within three months after the expiration of the validity of the approved loan decision, the decision on granting the loan can be reconfirmed without submitting an additional application, if the credit histories and incomes of the borrower (co-borrower) and family members have not undergone significant changes.

*If necessary, the Bank may request to update the income supporting documents.

Other requirements (applied only within the scope of the Affordable Housing for Young Families program)

1. the sum of the total monthly net income of the spouses and possible coborrowers must not exceed AMD 800,000,

2.Primary income is important both for the borrower and the coborrower*.

*only the spouse of the borrower can be accepted as a co-borrower with zero income

3. spouses must not be owners of other residential real estate property (residential house or apartment) unless the share of territory per each person registered in the given apartment/residential house is less than 18 sq./m.

4.the real estate property must be acquired for the purpose of permanent residence

5. The acquisition price, in case of acquisition from the secondary market, should be less than AMD 25 million, while the estimated market price should not exceed AMD 26 million, and in the case of acquisition from the primary market (directly from the developer) the acquisition price should be less than AMD 30 million, while the estimated market price should not exceed AMD 31 million.

Master loan agreement

The Bank concludes a chief loan agreement with the client for a term of up to 240 months and in the amount of up to 100% of the market price of the real estate property except for loans provided within the scope of "Affordable Housing for Young Families" program

Annual nominal interest rate

Interest rate on refinanced loan -1 % minimum 12.95%

For loans of AMD 25,000,000 and above - minimum 12.50%*

The interest rate is valid until 15/11/2026, after which the terms are set as follows: the interest rate on the refinanced loan minus 1%, but not less than 12.95%.

Maximum loan term

Remaining term of the refinanced loan - maximum 240 months

Loyalty fee

1% loyalty fee calculated from the amount of the refinanced loan(s)

The loyalty fee is provided by the 5th business day of the month following the loan disbursement date. The actual amount of the payable loyalty fee is determined based on full utilization, and is paid net of taxes payable as defined by the legislation of the Republic of Armenia

Consumer loan

Providing an additional loan of up to 10% of the refinanced mortgage loan amount in accordance with the Rocket Loan Information Bulletin.

Loan application review fee

NE

Upfront fee

NE

Pledge related costs

The pledge related costs incurred by the Bank for loans amounting to AMD 15,000,000 and more are as follows:

- collateral appraisal fee (no appraisal is required if the given property is already pledged in the Bank and has been appraised within 12 months preceding the submission of the loan application, or 6 months preceding the submission of the loan application in case if the property is pledged in other banks/credit organizations, by appraisal companies cooperating with the Bank),

- Fee for the unified reference provided by the state cadaster committee under the RA Government*,

- Notarization fee for the real estate that is the subject of collateral

- Fee for registration of the Bank's right arising from the pledge agreement in the competent state body.

*in case if the fees for the unified reference provided by the state cadaster committee under the RA Government and for registration of the Bank s right arising from the pledge agreement in the competent state body are made through the ARPIS program applied in the Bank, no reference fee shall be charged.

In the case of expenses incurred by the Bank, if the borrower repays the loan in full ahead of schedule within 24 months following the rollover, the borrower shall reimburse the expenses incurred by the Bank as mentioned in this provision and loyalty fee specified in point 3.3.

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.