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Commercial MortgageWe offer mortgage loans for commercial purposes. Loans are designed for financing the purchase, renovation or construction of commercial real property (manufacturing sites, public premises, etc.).
LENDING TERMS AND CONDITIONS
Currency AMD, USD, Euro Eligible borrowers RA residents aged 18 years or above who during the debt service period will not reach their retirement age, otherwise you must have a co-borrower on a loan who complies with the mentioned requirement. Loan amount • For purchase or construction - from AMD 10,000,000 to AMD 120,000,000 or its foreign currency equivalent,
• For renovation – from AMD 5,000,000 to AMD 30,000,000 or its foreign currency equivalent.
Loan disbursement method Cash/non-cash Loan term • For real property purchase or construction/land development – up to 15 years,
• For renovation - up to 7 years.
Interest rate (perannum)
• AMD - 13-17%*,
• USD - 9-12%*,
• Euro - 7-10%*.* The loan interest rate will depend on the currency, loan purpose (purchase, renovation, construction/land development), loan term, location and condition of the pledgeable real property.
Down payment (for purchase of real property) Starting from 10%; down payment will be made in the Bank and only in Armenian drams. Loan-to-value ratio Up to 70-90% of the appraised market value of the real property. Security for loan repayment
• Real property to be purchased or renovated*.* If necessary, as an additional means of security we may require sureties to be issued by individuals and/or legal entities.
• A construction/development loan shall be backed by the land lot whereon the real property is to be built, besides, in some cases other real property may be pledged so that the loan-to-value ratio is observed *.
The pledged property is subject to insurance . The collateral insurance shall be bought every year from a duly licensed insurance company in our favor at the amount of outstanding loan balance (required).
Commission fees • The fee for a loan application review is AMD 20,000. The fee once paid is not refundable regardless of the decision on the loan application.
• In case of cash loans, a cash withdrawal fee shall be charged according to Bank's tariff rates.
Timeline for making a decision on loan application, customer notification on the relevant decision and advancing the loan • The decision will be made within 10 (Ten) business days upon submission of necessary documents. The loan will be extended within 2 (Two) business days upon completion of the pledging process.
• We will notify you on the decision within 1 (one) banking day orally or at your request, also in writing.
List of Required Documents
- Loan application;
- Passport and social card or statement on its absence or ID card only;
- Certificate of actual residence, form #3;
- Employee salary statement issued not earlier than 30 calendar days prior to its submission;
- Marriage certificate (if any);
- Birth certificates of minor children (if any);
- Report on appraisal of real estate to be purchased;
- In case of renovation – cost estimate;
- Certificate of ownership of the real estate to be sold or renovated;
- Proofs for purchase of real estate;
- Unified encumbrance certificate on the property issued by the regional subdivision of the State Cadastre;
- Passports of real property owners;
- In case of construction/land development:
- Cost estimate,
- Ownership certificate of land lot,
- Construction/development permission (if any),
- If needed, the layout of the real property under construction/development.
- Other documents as may be required by the bank.
State Duties and Other Charges
- Appraisal of pledgeable property – AMD 10,000-30,000,
- Notarial certification – AMD 10,000-30,000 (payable in notary’s office),
- Collateral registration – minimum amount - AMD 36,500 (payable in the relevant subdivision of the State Cadastre).
Criteria for Taking Decisions on Loan Application
Criteria for Positive Decision-Making:
- Acceptable for the Bank pledgeable property and relevant sureties,
- Permanent residence,
- Steady income source,
- Positive or neutral credit history,
- Full package of trustworthy documents.
- Criteria for Declining a Loan Application:
Submission of unreliable documents,
- Negative credit history,
- High-risk income source (unstable and irregular incomes),
- Failure to submit documents necessary for conclusion of collateral agreement or sureties.
Payment of the Loan Principal Amount and Interest
- The loan shall be repaid on a monthly basis as scheduled in the loan agreement.
- The loan principal amount and interest shall be paid under one of the below-mentioned options as may be chosen by you:
- ''Annuity'' plan (equal monthly payments), including variable portions of the principal amount and accrued interest,
- ''Springy'' plan (variable monthly payments), including the payment of fixed principal amounts and variable interest.
- Interest calculation is based on a 365-day year. If the due date is not a business day, this date will be extended to the next business day.
- Attention: In case of repayment of more than 50% of the principal amount prior to expiration of the first half of the loan term, the customer will be obliged to pay а penalty at 1% of the prematurely paid amount that exceeds the 50% of the principal amount.
- Failure to promptly pay the loan principal amount and interest may entail a loan foreclosure, while information on your default will be recorded in the Credit Registry.
- If the collateral value is not sufficient to repay the liabilities arising from failure to duly fulfill your debt service obligations, we will be entitled to recover the debt by selling your other property (if any) (as stipulated in the current legislation).
- In case of a failure to duly fulfill your payment obligations (loan principal amount and interest), you will be obliged to PAY PENALTIES at 0.015% of the overdue principal amount and 0.1% of the overdue interest per day.