Mortgage Loans for the Diaspora

Purpose of the loan

Purchase of under-construction or existing residential real estate

Loan currency

AMD,USD,EUR

Minimum loan amount

5,000,000 AMD/10,000 USD/10,000 EUR

Maximum loan amount

100,000,000 AMD/250,000 USD/250,000 EUR

Minimum loan term

120 months

Maximum loan term

240 months

Nominal annual interest rate

AMD-13% - 14·5 %,Floating interest rate: from the 6th to 240 months IBRR 1+ [3.7%-5.2%]

USD-8.9% - 10·5 %,Floating interest rate: from the 6th to 240 months IBRR + [5%-6·6%]

EUR-7.9% - 9·5 %,Floating interest rate: from the 6th to 240 months IBRR + [5.9%-7·5%]

Effective annual interest rate

AMD-13.83%-16.80%

USD-9.27% - 11.25%

EUR-8.19% - 10.15%

Minimum down payment

AMD-20%

USD-30%

EUR-30%

*The amount of the down payment, in case of pledge of additional property, may be changed

Maximum loan/collateral ratio

AMD-80%

USD-70%

EUR-70%

**In case of purchasing real estate from the primary market, when calculating the maximum loan/collateral ratio, the lowest of the estimated market value (in case of 100% completion of the building construction) and the value of the purchased property is taken as a basis. At the same time, if the loan/collateral ratio is 50%, no income analysis is performed and the maximum amount cannot exceed AMD 50,000,000 (foreign currency equivalent).

Method of providing the loan

One-time non-cash through current account

Loan and interest repayment method

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 may vary

Remote client identification and loan application processing fee

AMD 25,000 (equivalent in foreign currency)

Upfront fee

N/E

Bank account opening

A bank account in the loan currency is opened for both the borrower and the co-borrower in line with the Bank's current tariffs for non-residents. An AMD account is also opened if the loan currency is different from AMD.

Pledge registration fees

The following expenses are paid by the client:

•Pledge appraisal fee*

•Fee for unified reference on restrictions on the subject of pledge

•Notarization fee for the real estate which is the subject of pledge

•The charge for registering the Bank’s right under the pledge agreement with the authorized state body.

* In case of purchase of residential real estate from the primary market, the pledge appraisal fee may be covered by the Bank.

Loan and down payment withdrawal fee

N/E

Pledger

•In case of the purchased real estate– the borrower and/or coborrower

•In case of other real estate (other pledge) – any other physical or legal entity

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

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 resident physical entity Non- resident individual

Age restriction

Borrower - physical entity over 21 years old whose age must not exceed 65 years by the loan maturity.

Coborrower - a physical entity over 21 years old whose age must not exceed 65 years at the moment of loan disbursement (the age restriction requirement shall not be applied if based on the information submitted in the application form the financial state of the borrower (other coborrowers) is enough to repay the loan without the given coborrower (coborrowers).

General principle of borrower/coborrower s creditworthiness assessment

Maximum total debt to income ratio (OTI) must not exceed: Up to 60%

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

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 Annex 2

Requirements to the subject of pledge

Presented in Annes 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 5 business days after submission of a complete package of documents required by the Bank

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.

Master loan agreement

The Bank concludes a master loan agreement with the client for a term of up to 240 months

1

Prior to conclusion of a loan agreement the Bank shall provide the client with the individual sheet of essential conditions of the loan which contains the individual conditions of the loan to be provided to the client.

2

The Bank is obliged to provide the client with the mortgage loan offer 7 days prior to the agreement signing date and provide the client with the opportunity to think over before making a final decision.

3

The borrower has the right to completely or partially perform his/her contractual obligations ahead of time, paying a penalty if provided.

4

In case of early repayment, the payments, generating the Bank’s income, included in the total cost of crediting the borrower, shall be proportionally reduced.

5

The client is entitled to fulfil (repay) his/her contractual obligations ahead of time irrespective of the fact of such right being prescribed by the loan agreement or not.

6

The real estate mortgage agreement must be notarized. The property ownership right, mortgage right and other property rights are subject to state registration.

7

Loan interest amounts shall be calculated based on the effective interest rate. Loan interest amount shall be calculated against actual loan balance.

8

The effective annual interest rate indicates the cost of the loan for the client given all the interest amounts and fees are repaid in the defined terms and amounts·

9

The order of effective annual interest rate calculation is presented at the following link: Guideline on effective annual interest rate calculation

10

In case of foreign currency loans, the effective interest rate calculation is based on the exchange rate published on the official website of the RA Central Bank at the moment of provision of loan. The effective interest rate can change depending on the change of the exchange rate published on the official website of the RA Central Bank.

11

In case of foreign currency loans, the interest amounts calculated towards the principal loan amount can also be paid in the loan currency upon the client’s request.

12

In case of foreign currency loans, the changes of foreign currency exchange rates can impact the loan repayments·

13

In case of failure to perform interest and loan repayments on time the pledged property and/or monetary funds can be confiscated in an order prescribed by law, and the Bank shall send the information on the client to the credit bureau within a maximum of three business days, where the client’s credit history is being shaped. The client has the right to receive his/her credit history free of charge once a year from the credit bureau.

14

A bad credit history can prevent a client from receiving loans in the future.

15

The borrower may be deprived of his/her property rights if he/she does not fulfill or improperly fulfills his obligations under the loan agreement.

16

In case if the collateral is not sufficient to fulfil a client’s obligations at the expense of the collateral in the event of failure to fulfil obligations by the clients, the obligations can be repaid at the expense of other property of the client·

17

While performing overdue obligations, the repayments shall be implemented in the following order: cost of confiscation, including litigation expenses (if applicable), interest penalty, penalty for principal loan amount, interest, service fee and commissions /if applicable/ and principal loan amount. The Lender is entitled to unilaterally change the order of repayments mentioned in this provision at any time·

18

Disputes arising between the parties can be settled in a court proceeding or by the Financial system mediator (in the order prescribed by the RA law on “Financial system mediator”), located at 0010, Yerevan, 15 M. Khorenatsi St, “Elite Plaza” business center, 7th floor, e-mail – [email protected], telephone – (+37460) 701111, fax – (+37410) 582421. Moreover, if the property claim does not exceed 250 000 (two hundred fifty thousand) AMD or equivalent in foreign currency, the decisions of the Financial System Mediator cannot be challenged by the Bank·

19

For the purpose of proper study of the client as defined by RA law on “Combating money laundering and terrorism financing”, the Bank may require additional documents or information based on “Know Your Client” principle.

20

According to the agreement with the USA based on the Foreign Account Tax Compliance Act (FATCA) the Bank may collect additional information for the purpose of identification of the fact of the client being a US taxpayer.

21

The Client has the right to communicate with the Bank through a preferred means of communication: e-mail or regular post. The electronic means of communication is the most comfortable. It is available 24/7 and is free of the risk of losing information in paper as well as ensures confidentiality·

22

The conditions of providing statements, their copies, references during the validity of the loan agreement can be found at the following link: Tariffs

23

The list of branches and ATMs of the Bank, information on their locations and working hours can be found at the following link:Branches and ATMs

24

Remote servicing by the Bank is provided thought the IDBanking.am online system and ? Idram&IDBank mobile application. The order and tariffs on rendering remote services are presented in “Public terms on rendering remote banking services”.

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.