Renovation Mortgage Loans. Own resources

Loan purpose

Renovation of real estate property

Loan currency

AMD

USD*

*-Loans in USD are provided exclusively/solely to physical entities who are not residents of the Republic of Armenia

Minimum loan amount

AMD 3,000,000 or equivalent in USD

Maximum loan amount

AMD 125,000,000 Up to USD 250,000

Minimum loan term

60 months

Maximum loan term

120 months

Nominal annual interest rate for AMD

Fixed(for the first 12 months): 14%-16% / Floating(from 13th to 120th months): IBRR+(4.7%-6.7%)

Nominal annual interest rate for USD

Fixed(for the first 12 months): 10%-13% / Floating(from 13th to 120th months): IBRR + (6.1%- 9.1%)

Effective annual interest rate

AMD 14.90% - 18.94% / USD 10.57% - 15.99%

Security (pledge)

1) Real estate property being renovated or 2) Real estate property being renovated and other real estate property (residential/public)

Maximum loan/collateral ratio

70%

Loan disbursement method

1. non-cash through current account, 2. one-time or by installments according to the decision of the Bank s competent body

Method of loan and interest repayment

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

Not specified

One-time loan disbursement fee

Not specified

Bank account opening/closing

Opened 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.

Commission for encashment of loan amount and prepayment

Not specified

Pledger

the borrower and/or coborrower, or any physical or legal entity in case of other real estate property (other pledge)

Status of the borrower/coborrower

RA citizen physical entity

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 repayments to net incomes (OTI) ratio must not exceed: 55%

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.

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 - 0.1% daily. Penalty for overdue interest amount - 0.1% 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

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

Loan application revision fee

Not specified

One-time loan disbursement fee

Not specified

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 case if the costs are incurred by the Bank the borrower shall reimburse to the Bank the costs incurred by the latter mentioned in this provision in case if the borrower completely repays the loan ahead of time within 24 months following the transfer.

List of documents to be submitted by the client

according to Appendix 4

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

Changes in foreign exchange rates may affect the loan repayments.

14

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.